Standard Life endownment: 13 yrs old - cash in or not?

Lorian

As far as the Mortgage Promise, SL recently told me it is currently worth "about 40%" of what it originally promised to deliver (IE 40% of the shortfall when the promise came in to effect, its much bigger now).

No promises this is what it will be worth when the policy matures.

barneybeagle

The Standard Life Mortgage Endownment Promise as of October 2004 says it will pay out between £2241 and £3362 on maturity. When I phoned up earlier in the week I was told it was exactly the same and I'm aware that this can change in the future.

We are well covered on life cover so that is not a problem for us both.

Thanks for your replies.

Cheers
bb

dunstonh

IIRC, that promise figure isnt included in any projections. So, you need to add it on top of the projections along with any final bonus that exists.

Lorian

dunstonh wrote: »

IIRC, that promise figure isnt included in any projections. So, you need to add it on top of the projections along with any final bonus that exists.

Thats what they told me, and of course you don't get it at all unless it runs to maturity.

dunstonh

So, in your case, you need to look at the 4 to 6% figure on the projections. Thats my guess of future likely returns on Std Life. Could be right, could be wrong but I think its a fair guesstimate.

Then add on the promise and current terminal/final bonus figure and that is more realistic probable final maturity value.

Unless you have a good final bonus currently sitting on your policy, it doesnt look that good.

EdInvestor

dunstonh wrote: »

Then add on the promise and current terminal/final bonus figure and that is more realistic probable final maturity value.

Payouts are still falling at SL unfortunately, so the current terminal bonus is unfortunately not a guideline to the future.