Surrender, Sell or Keep ??

KirstyD_3

Please could anyone offer advice on whether I should surrender, sell or keep my Standard Life endownment policy.
Started in 1992 for £20,000
I pay £24.88 a month
Have already now got a repayment mortgage.

I have been offered £1040 compensation or
£5252.25 to surrender or
cancel policy and receive premiums back of £4204.72 plus £1906.41 interest = £6111.13 as of last week.....

Is this enough info for someone to advise me ??
I don't particulary need the money now, would it be better to contribute £25 per month to some other savings plan ??

Many thanks to all, I do read this forum - hence making the complaint in the first place - just my first post

Kirsty_&_Pete

Anybody any advice ??

KirstyD_3

Anyone......pleaseee.....just a bit of advice

Pobby

Sorry

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don`t know but

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bump

Ian_W

I'm no expert but it's interesting that more than half way through your policy the best option, by almost £1K, seems to be to accept a return of the premiums with interest. Even allowing for the fact that some of the premium goes towards life cover it seems to indicate that it has performed no better than having put the same amount into a savings account.

No-one can be certain but SL with-profit funds seem unlikely to do anything spectacular in the near future so accepting the with interest offer may be your best bet and putting it and your £25pm in a different savings vehicle may make more sense than keeping it going. You don't say whether the policy is linked to a mortgage but if it is paying the £6K off the mortgage [if you can w/o penalty] may be another option and switching to a repayment mortgage with the monthly extra going towards that.

If you do get rid, don't forget your life cover will be £20K down so if you need more cover get that first - see Martin's insurance section. Hope that helps.

KirstyD_3

Thanks for the advice, was thinking along those lines - forgot about the life cover side of it !!

EdInvestor

Hi Kirsty,

Sorry, missed your post before.

KirstyD wrote:

Please could anyone offer advice on whether I should surrender, sell or keep my Standard Life endownment policy.
Started in 1992 for £20,000

What year does the policy mature?
Does it have a guaranteed sum assured and declared bonuses?If so please post.

What is your mortgage interest rate?

.....cancel policy and receive premiums back of £4204.72 plus £1906.41 interest = £6111.13 as of last week....

Is this figure before or after tax ( the interest is taxable IIRC)?

rjm2k1

What does it mature, and what is the projected value/shortfall?

KirstyD_3

EdInvestor wrote:

Hi Kirsty,

Sorry, missed your post before.




What year does the policy mature?
Does it have a guaranteed sum assured and declared bonuses?If so please post.

What is your mortgage interest rate?




Is this figure before or after tax ( the interest is taxable IIRC)?

Hi,
The policy matures 28 Sep 2017
Life with profits fund, i think it is guarenteed to pay out £20k on death
Mortgage interest rate is 5.1%

Hope this helps - many thanks

KirstyD_3

rjm2k1 wrote:

What does it mature, and what is the projected value/shortfall?

Projected value as at yearly statement Sept 06 was:

Low rate £10,600
Intermediate £12,400
High £14,500

Thanks

KirstyD_3

EdInvestor wrote:

Hi Kirsty,

Is this figure before or after tax ( the interest is taxable IIRC)?

Sorry no idea !! They never told me tht on the phone :rolleyes: