Cashing in a Standard Life Endowmnet with only 2 years to go.

dunstonh

Normally, they do not include the MEP on the current position. They dont on the info supplied to IFAs.

Dick_here

dunstonh wrote: »

The current cost of surrender is £2211 plus MEP. You have £792 to pay. So, the cost of surrendering early, ignoring any future growth is £1419 plus MEP value.

So as always, it's down to how much the OP really needs the money now.

bigmondy

dunstonh wrote: »

Normally, they do not include the MEP on the current position. They dont on the info supplied to IFAs.

I will need to check that. If the MEP was not included in the quotation then potentially I will lose upwards of £2k for cashing in 23 months early.

Oh good grief.

Barlcays Platinum Card with 22 months interest free might be a more profitable option for the ready cash.

bigmondy

Just checked again.

The decision I have to make as recomended above is as follows:

If it was fully paid up today and including final bonuses and MEP it would pay out

Similar policy maturing today all in: £18,371

If I was to surrender it early today it would pay out:

Early surrender all in: £16,180

Difference approx: £2,191

Less 23 premiums still to pay: £828

Cost of early surrender is: £1,363

---

Suppose I have to bear in mind the MEP may dissapear and the profits may diminish drastically and there remains a risk - but:

:question: does the potential increase in value of around £1.4k make retaining it for a further 23 months worthwhile????

I could survive (just) without cashing it in!


?

dunstonh

The MEP wont disappear. They have to give more notice than you have until maturity. Plus, they have had it for nearly a decade. So, its unlikely to go now.

The bottom line is that will the alternative that you use the money for give you (or save you) more than £1363 in 23 months?

bigmondy

That is reassuring at least dunstonh - thanks. I suppose it makes sense to keep it going given the additional £28k life cover it affords me as well?

Actually - when you think about it - the MEP quote I received was £1,200 - that means that is the only difference or benifit to me keeping it.

bigmondy

dunstonh wrote: »

The MEP wont disappear.

Could it reduce though - i.e. instead of getting the top of the range - I caould get the lowest?

dunstonh

bigmondy wrote: »

Could it reduce though - i.e. instead of getting the top of the range - I caould get the lowest?

The more the fund grows, the lower the MEP gets and vice versa. So, if one goes down, the other goes up.

bigmondy

Thanks so much for all your advice folks.

I am still in a quandry - but a well informed one now...... the money would be so helpful and it is tempting to smash and grab!

bigmondy

dunstonh wrote: »

The more the fund grows, the lower the MEP gets and vice versa. So, if one goes down, the other goes up.

Just remembered this post Sir.


I was told by SL on the phone that the more people that "cash in their policies early - the more that is left in the fund and the greater the MEP!"

Is that not another possibility - it might go up?

Who is keeping tabs on SL's delivery of their promise? Auditers? Policy holders?

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