Anyone with a 25 year endowment which matured recently ?

dunstonh

Dont forget that endowment mortgages were cheaper monthly as well. So, £20pm for 25 years is £6000.

silvercar

GAry wrote: »

That is what I thought. My extra (nearly) 20% has probably only had the effect of reducing the MEP payout by Standard Life. I projected this outcome in 2001, but Standard Life did not really respond properly to it when I raised it with them.

I estimate that you paid in £220 less over the 25 yrs, but your life cover would have meant more of your premiums invested in the fund, about £1500. So you should have had £1280 more invested.

I can see commission payments were 50% of the premiums in the first 2 years.

Yet your final payment was £1200 lower.

curtlyb

We've just had a Scottish Amicable 'with profits' Endowment mature.


Scottish Amicable (now Prudential) 25year policy


Sum Assured £46500
£69/mth (with joint life cover)


Maturity Value £38000


Got a £3800 mis-selling payout 10 years ago which has grown to £6000 so with the reduced payments over the mortgage not to unhappy.


Interestingly enough, a Maxi Share Isa taken out 18years ago to cover a £30000 additional loan matured at the same time. £70.44 monthly (with joint life cover) has just paid out £49250 so this shows the comparable poor return of the Endowment policy.

dunstonh

Interestingly enough, a Maxi Share Isa taken out 18years ago to cover a £30000 additional loan matured at the same time. £70.44 monthly (with joint life cover) has just paid out £49250 so this shows the comparable poor return of the Endowment policy.

That is not correct. The endowment policy and the S&S ISA do not have returns. Neither good or bad or anything. They are containers for investments. So, the returns will be based on the investments you select to hold within those containers. So, hold the same fund in an endowment as you hold in an S&S ISA and you get the same return with only tax and charges being the difference.

What you generally find is that most people went medium risk on their endowment investments. Whereas mortgage linked S&S ISAs went higher risk. Typically a FTSE tracker. Higher risk will typically return more than medium risk over the long term. So, its not down to the wrapper.

TrickyDicky101

The endowment guarantees a level of capital protection too.

curtlyb

dunstonh wrote: »

That is not correct. The endowment policy and the S&S ISA do not have returns. Neither good or bad or anything. They are containers for investments. So, the returns will be based on the investments you select to hold within those containers. So, hold the same fund in an endowment as you hold in an S&S ISA and you get the same return with only tax and charges being the difference.

What you generally find is that most people went medium risk on their endowment investments. Whereas mortgage linked S&S ISAs went higher risk. Typically a FTSE tracker. Higher risk will typically return more than medium risk over the long term. So, its not down to the wrapper.

errm, what is not correct, I was just showing that in my particular circumstance a similar investment in two different types of repayment vehicle gave different results, nothing more.


Apologies if I gave anyone the wrong impression.

dunstonh

curtlyb wrote: »

errm, what is not correct, I was just showing that in my particular circumstance a similar investment in two different types of repayment vehicle gave different results, nothing more.


Apologies if I gave anyone the wrong impression.

It wouldnt have been a similar investment. You are comparing a low/medium risk with a higher risk one. That makes a world of difference when it comes to long term returns with regular contributions.

GAry

silvercar wrote: »

I estimate that you paid in £220 less over the 25 yrs, but your life cover would have meant more of your premiums invested in the fund, about £1500. So you should have had £1280 more invested.

I can see commission payments were 50% of the premiums in the first 2 years.

Yet your final payment was £1200 lower.

Just checked - my life cover for 2016 was £50.75 of the yearly payments.

The MEP is the big key element of the payout difference. If I had kept my same premiums, but raised the Sum assured to coincide with 8.50% return, then the MEP would have been higher (and confirmed by dunstonh that MEP is based on mid rates). So by me playing safe and not listening to the (I think) Standard Life adviser, I have reduced the MEP payout and saved Standard Life cash to my detriment. There would have been a small reduction in the with profits fund due to the increased sum assured life cover, but I guess it would have been minimal.

Magsy99

What a great thread. Ive been cheered by the amounts people are getting.
I wasnt sure what to do with my endowment but I will wait till it matures, the only query I have is how brexit may affect what I end up with.
It matures in Jan 2020.
Its a Standard life homeplan with profits.
£50.05 per month for 25 years with life insurance of £30,000....I wonder if this thread will still be here then.
Cheered by the Mep amounts, seem to be a lot higher than the annual summaries.

Luckily i changed my mortgage to the One account (a mortgage and current acct.,in one) and paid it off 8 years early. Sadly that account is closed to new customers and no wonder, I must have saved thousands in interest payments.

Fingers crossed all will be well in a years time.

Thrugelmir

Magsy99 wrote: »

Luckily i changed my mortgage to the One account (a mortgage and current acct.,in one) and paid it off 8 years early. Sadly that account is closed to new customers and no wonder, I must have saved thousands in interest payments.

No everyone has used the account in the same manner. Instead prefering to use the borrowing facility. Resulting in obvious issues. Property and ATM aren't compatible bedfellows in this tighter regulatory environment.