standard life endowment should I sell

ginger_nuts

I have a standard life emdowment policy since 1991 .It will mature in 2016
My premiums are £21.28 per month .
The surrender Value is £4600 ( standard life )

with profits sum assured is £5404.00
bonus is £2532.45
The life cover is £16600 .

Should I cash this in and take a lump sum off my mortgage or should I let it run.

EdInvestor

Hi ginger

What interest rate do you pay on the mortgage, and do you have any maturity projections for the endowment?

ginger_nuts

interest rate 5.3% until may 2007 with no tie in .I can make any overpayments I want ,not the usuall 10%
sorry No projections at the moment .I may have some in a few days .
Maybe I should say the endowment will never clear the mortgage in full ,as the mortgage is for £58,000 .

ginger_nuts

latest projections are
4% £12,000
6% £14,125
8% £16,425

This years bonus to date is 25p

ginger_nuts

anyone got any advice

mleonard79

Hi ginger nuts,

I asked the same question not that long ago but am still undecided on what to do to be honest. I really thought selling would be the best option but some of the experts on here told me I may be in for large terminal bonuses so now I'm dithering. I'll paste the link to my thread in case it helps you though!

http://forums.moneysavingexpert.com/showthread.html?t=222429

Regards

Michelle

EdInvestor

Hi ginger nuts

If you cashed it in and paid a lump sum off your mortgage @ 5.3% also paying in the premiums to maturity your equivalent guaranteed return would be 11,016, compared with SL's non guaranteed projected return @4% of 12,000.

I suggest you see what you would get if you tried to sell this policy as these projections seem rather higher than is usual from SL, which is a bit puzzling.

https://www.apmm.org should be able to give a quote.Normally there is a 5-10% premium for SL policies.

Please let us know the result.

ginger_nuts

I received a letter from standard life today .
There latest projections are

3.75% £8500
5.5% £9780
7.5% 11200
I have been offered £5005 by a company called policy plus .

EdInvestor

Ah, that makes more sense.

ginger_nuts

EdInvestor wrote:

Ah, that makes more sense.

maybe ? but should i sell ?

EdInvestor

I'd have thought so.