Endowment policy - sell or hold?

dunstonh

00ec25 wrote: »

is a MEP unique to Aviva only, or more specifically do Standard Life have one for their policies?

The 3 big ones with MEPs are Pearl, Aviva and Standard Life.

Std life has a slight variation on Aviva's MEP in that you have an MEP range whereas Aviva have a maximum.

HarryS

Hi, I have been worried about my shortfall (currently £17,000)on my mortgage ending Aug 2011 and my annual statement received today mentioned MEP. It is Standard Life. But it says calculation will only take place when the plan matures and something about 6%. I really do not understand the jargon - could anyone, dunstonh maybe? help me out in laymans terms? I would just like to know how the MEP works and if I would be eligible? and, if possible an estimate of how much? or, if anyone has experince from Standard Life? sorry, rambling a bit! thanks for any help.

Loughton_Monkey

00ec25 wrote: »

is a MEP unique to Aviva only, or more specifically do Standard Life have one for their policies?

No, I had a couple of endowments mature mid 2008. Both guaranteed the full mortgage amount [Wesleyan Assurance]. But it was of no value since they both matured 72% and 23% respectively over their sum assured. With a WP fund so strong, their guarantee was just 'marketing'.

favole79

Harry: You have probably a 19 or 20 year endowment policy, am I right? This means Standard Life will pay you a terminal bonus (only on maturity) of 6% on the sum assured and the revisionary bonus.
So just try to add Sum Assured and Annual Bonuses received so far and multyply it by 1,06. This should be the amout to expect at maturity. However always keep in mind that these rates can be changed several times during the year, so if you're lucky the final bonus rates will go up again before your plan reaches maturity. (Standard Life tends to declair new bonus rates at the end of July each year.)

I'm working with TEP's all the time and on none of the matured policies I've seen so far there has been something like a MEP, however the Sum Assured as well as the Annual Boni already applied are guarantied. The actual outcome of the policy very much depends on the Terminal Bonus given on maturity (values vary from 0% up to 60-70% of the sum assured and/or rev. bonuses)

I hope I could help a little.

dunstonh

I'm working with TEP's all the time and on none of the matured policies I've seen so far there has been something like a MEP

Remember, its mainly standard life, aviva and pearl. Not all providers.

Most of the maturities I have seen on those have had them.

derekb1

seeing as you are an IFA and an active forum poster I wonder if you could use your "trade knowledge" to help me.

I have an WP endowment with Scottish Equitable about to mature in June 2011. According to my recent anuual statements it is roughly on track to pay its £33K face value.

My question is about the likely Final Bonus. They used to publish it on the annual statements and back then it was about 150% but they have long since stopped publishing it (after about 2001 I think).

I know its not guarranteed but from your experience / inside knowledge what Final Bonus did a similar policy from SE pay last month?

dunstonh

I'm sorry but I cannot recall the last time I saw an Aegon SE endowment. Indeed, I am not sure that I ever have.