Standard Life Endowment Maturing 2009 - Massive Shortfall

KayTee_2

We have 3 endowment with profit polices maturing this year which were taken out 25 years ago to clear our £30 mortgage. However, it seems the minimum amount paid at maturity leaves a massive shortfall of £8,817! The statement states "The actual amount you'll get at maturity will be the sum assured plus boneses and it may also include a final bonus". Standard Life say that under the current financial climate they cannot advise how much this may be, apparently it could be as low as 0%! If anyone else has had Standard Life policies maturing recently, please can you give me some idea of the level of shortfall?

opinions4u

KayTee wrote: »

We have 3 endowment with profit polices maturing this year which were taken out 25 years ago to clear our £30 mortgage. However, it seems the minimum amount paid at maturity leaves a massive shortfall of £8,817!

With the greatest respect, they have been subtly hinting at this in letters sent to you over the past few years. Did you read them?

The statement states "The actual amount you'll get at maturity will be the sum assured plus boneses and it may also include a final bonus". Standard Life say that under the current financial climate they cannot advise how much this may be, apparently it could be as low as 0%!

That is correct. Have you asked them if your policies qualify for any sort of top up under their rather poor, but better than nothing, "mortgage guarantee"?

If anyone else has had Standard Life policies maturing recently, please can you give me some idea of the level of shortfall?

It sounds typical. I surrendered early during last year, and while underwhelmed with the return couldn't see any likelihood of it improving in value.

Don't forget you also got some Standard Life shares. Selling these could help reduce the shortfall a little.

Gorgeous_George

I think you should cash them in now. Do not wait for SL to announce more cuts.

You may have noticed some news reports recently talking of problems in the financial markets (the news is that programme that is on between Neighbours and Emmerdale Farm). These are not spoof news reports and you should take some action if you want to safeguard your investments.



GG

darich

this is not really new - I had an endowment for a 35k mortgage a few years ago(started in 1997). Early on a recevied a couple of "amber" warnings but when the policy was only about 4 years old it already had a short fall of around £8k....yes...eight thousand pounds. It had been growing at barely 2% despite Countrywide Assured claiming to be the fastest growing and biggest company of that type in britain.

I changed my mortgage to repayment and cashed in the endowment. I lost a couple of thousand pounds on it but it's small fry compared to the shortfall i was facing. Thankfully i did it in the really early stages (first 4-5 years) so didn't lose as much as i otherwise would have

dunstonh

If anyone else has had Standard Life policies maturing recently, please can you give me some idea of the level of shortfall?

It doesnt work that way. Some will mature in surplus. Some will fall short. Some will have a mortgage promise payment. Some will have target growth rates of 11% p.a. Some will have target growth rates of 4% per annum.

What others get doent matter to you as you dont know how their plan compares to yours.

Do you have a mortgage promise value attached to this endowment? How much terminal bonus is currently on the plan? If this is already at zero then you cant go down any more and early surrender would see you pay a penalty and lose the mortgage promise value.

almond

HI
need a little help bit of a long story but my partner and ex have standard life
due to finish next few days with a shortfall of £1400, i have just read above about the mortgage promise value does anybody know how to find out about this? i have just rang partner at work and he says ex has put the policy in bin
thanks so much and would be grateful for all info

dunstonh

You dont lose the bonus on early surrender. You may get a penalty but penalties dont always continue to maturity. The only thing that can be guaranteed to be lost on early surrender is the mortgage promise value.

Facts are needed. Not assumptions. We dont have the facts.