Standard Life - Endowment

StevieJ

StevieJ wrote:

Thanks Ed.

One question: does the life assurance go with the policy? the form asks for the names and addresses of two separate people to verify my continued existence.

This would be kinda spooky, knowing that some unknown person will be quids in if I die. I have just been watching some old Avengers episodes and this just feels like one of the story lines.

In answer to my own question I have checked with Standard Life and one of the TEP firms: the life insurance element of the endowment transfers to the purchaser of the policy ( continues on your life until the policy matures). it was explained that the purchaser is rarely notified in the event of death but obviously different organisations have different ways of finding out.

One organisation asks for contact details for two people who know you, presumably to verify your continued existence - Will not be taking that one up.

Another organisation will pay a reward if your family inform them of your passing away - This is more reasonable in that your family will at least benefit a little (with this one the gain was under £500)

My intention was to sell/surrender the policy to reduce my mortgage, the time it takes to process (around 8 weeks) means I will still be paying my mortgage/endowment premiums for 2 to 3 months, this will eat into any gains over surrender. I have decided to surrender my policy as I do not think any gains in selling would be worthwhile.

dunstonh

With the SL bonus rate announcement due, I would wait until then. All the others so far have increased on the announcement.

EdInvestor

Sorry I misunderstood your question: thought you were asking if you continued to be the life assured.

I understand the premium offered by the TEP traders is now down to something like 3.5%.

Draw your own conclusion as to whether you should go now or wait for the bonus announcement.I don't think I've changed my view.

StevieJ

Thanks for all your comments, I can see both sides to this:

A) Standard life may wish to impress in the first full bonus announcment after DM.

The SL fund is over 50% bonds which have performed poorly with rising inflation and interest rates, so, a good excuse for reducing the TB.

I think this could genuinely go either way.

dunstonh

If they reduced the TB, they would be the first to do so who have announced so far.

Of course, there is an element of risk here but it should be noted that the performance since their August interim announcement has been very good.

StevieJ

Thanks Dunstonh, I held on to my policy until today, It has increased overnight from 15,691 to 16,224. I will surrender today.

Gorgeous_George

Hi StevieJ

Mine also increased. From £22,140 to £22,352.43. Take out the £45 payment that I have made and the increase is just over 0.75% or equivalent to an annual return of 12% and tax-free.

I'm praying this continues until maturity in 2010.



GG