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Standard Life Endowment Life Cover
glitter123
Posts: 495 Forumite
We have just over 7 years left to run on our £60K endowment. We have repaid our mortgage in full.
We pay £1200 pa and the current surrender value is £23,600 - about £2,500 more than we have actually paid to SL. In recent years we have noticed how much the life cover portion of the premium has increased considerably. It is now more than a third of the monthly premium. I looked at typical life cover costs for us and they are much cheaper - almost half what SL are charging.
We 're not sure whether the time has come to surrender however we do have an MEP which is between £6400 and £9700 (or nil :mad:)
We pay £1200 pa and the current surrender value is £23,600 - about £2,500 more than we have actually paid to SL. In recent years we have noticed how much the life cover portion of the premium has increased considerably. It is now more than a third of the monthly premium. I looked at typical life cover costs for us and they are much cheaper - almost half what SL are charging.
We 're not sure whether the time has come to surrender however we do have an MEP which is between £6400 and £9700 (or nil :mad:)
0
Comments
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Ask about making the Policy Paid Up. In particular what the ongoing costs would be.
No further premiums would be payable, but at least you may benefit from holding the policy the full term.0 -
The MEP is lost if made paid up (or surrendered or sold).we have noticed how much the life cover portion of the premium has increased considerably.
It shouldnt change at all as the premium should remain the same. If it changes, the plan ceased to be classed as qualifying and a tax liability will arise. The actual cost of the life assurance is costed over the term and averaged so the premium remains the same in most cases.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
That was my thinking but although our monthly premium has remained unchanged the amount being taken for life insurance has risen from £114 in 1993 to £422 in 2009. (Strangely they couldn't tell me yesterday how much the life insurance component is this year!)0
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