Cashed in My Standard Life Endowment!!

Mr_helpful

Dithering_Dad wrote: »

*sigh* the endowment life assurance was for 38k, for my death only. If I had kept the endowment going, it would have paid off the 38k interest free part of the mortgage and my wife would have had £10700 from the endowment to herself. Had my wife died, the life assurance provided by the endowment would have given us zip!

That wasnt really the point I was making, it was about life assurance in general and the fact that if either of you died employers insurance runs out quickly.

Dithering_Dad

Sorry, I got confused because the thread was about the endowment so I assumed you were adding on from JoeK's endowment life asurance comment.

As far as having enough life assurance is concerned, you're probably correct in that we don't have enough but I'd assume that was the case for much of the population. In fact I'd imagine that because we have cover from employer insurance (4x) that we are a bit better off than a lot of folk.

If either of us died, the mortgage would be paid off and the survivor would receive 4x salary. This would allow enough time to grieve and to then start to sort out the finances, which is always what I see life insurance as - not a permanent solution so that I need never work again, but rather a provider of breathing space.

My wife works as a teacher and as I work away from hoem during the week already, would be largely unaffected as far as looking after the kids is concerned. I would have to change my job and probably go back to working for the civil service, maybe on a part-time basis. With no mortgage to pay though, we could manage on a much reduced income.

If push came to shove, we could downsize from our 4 bed detached to a 2 bed terrace (though my daughters would fight like hell, sharing the same room:) )

agal

Just for information, I today received my maturity notice and thought some here might be interested in the figures so here they are;

25 year endowment £36.41 pcm

Amount paid to your plan since it started: £12,483.00
Target Amount: £26,880

With Profits Fund
Sum assured: £10,242.00
Annual bonus added before 16 November 2006: £13,912.44
Guaranteed minimum maturity value: £24,154.44
Interim bonus since 16 November 2006 £47.59
Final bonus: £4,985.62
Illustrative maturity value: £29,187.65


While these values may change slightly before the maturity date of 1st June 2007, I think they give a good idea of what is happening to currently maturing SL endowment policies.

dunstonh

Nice to see you ended up with a surplus agal.

Out of interest, have you been getting shortfall warnings over the last few years?

I ask that because there have been numerous reports of Standard Life projections showing shortfalls but ending up with surpluses on maturity.

Your return (assuming it remains £29,187) is 7.12% p.a. average.

agal

No dunstonh, no shortfall letters, they have all been green "plan on track" ones.
The return doesn't include the 1500 free SL shares, which I only received because I had the endowment policy.