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Standard Life Early Maturity Endowment
egpx
Posts: 39 Forumite
I've got a Standard Life Early Maturity Plan endowment policy that matures in December. It will, of course, get nowhere near the target amount but I remortgaged a few years ago so it has no longer any connection to my mortgage. I would, however, like to get as much cash as I can out of it which leads me to a dilema - should I cash it in now under the early maturity option or leave it until December in the hope that a terminal bonus will bump up the amount.
A previous policy I had was wound up 11 months early under the early maturity option and probably earned me an extra £3000 but that was several years ago. The latest statement suggests that the plan was worth £9600 on 1 Feb which is £500 more than the MINIMUM amount they will pay at maturity. Is it likely that this year's bonus plus a terminal bonus will be more than that £500? Indeed, is there likely to be a terminal bonus at all?
The lady from SL was not allowed to give advice and I know I should consult an IFA but I thought I'd ask you lot first
A previous policy I had was wound up 11 months early under the early maturity option and probably earned me an extra £3000 but that was several years ago. The latest statement suggests that the plan was worth £9600 on 1 Feb which is £500 more than the MINIMUM amount they will pay at maturity. Is it likely that this year's bonus plus a terminal bonus will be more than that £500? Indeed, is there likely to be a terminal bonus at all?
The lady from SL was not allowed to give advice and I know I should consult an IFA but I thought I'd ask you lot first
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Comments
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Have you get a mortgage endowment promise value (MEP)? These are only paid on maturity. Not on earlier surrender.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
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According to the statement SL consider it unlikely that I will receive an MEP payment.
They have been using wording like that on those they have paid out an MEP. The wording is full of maybes and may not get anythingI 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 -
They have been using wording like that on those they have paid out an MEP. The wording is full of maybes and may not get anything
Yes, I guess... I suspect I'll only find out if I let it mature. It might be worthwhile doing this anyway as the difference between the current value and the minimum amount is only a few hundred quid and not a few thousand like before.
Never easy is it?0 -
You can ask them the MEP value range. If its only a couple of hundred pounds then maybe its not worth it. I have seen them in the tens of thousands though. Always worth having the information (even if they say you have none). You can make a more informed decision then.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
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