Standard Life - How much will my policy be worth tomorrow?

Gorgeous_George

I've been tracking the surrender value of my SL Policy for a while now. In May it was worth £22,873.27 (Basic Value and Final Bonus figures of £20,459.09 and £2,414.18 respectively). It was originally planned to pay out £31,045 on 1 Feb 2010.

So, what does it need to be worth tomorrow (after another £45 monthly payment) to make it worth keeping until July?



GG

dunstonh

If you are going to go until July, then you must remember that Std Life have the interim bonus set in August. Thats the next tell tale point on the progress of SL's with profit fund.

Also, dont forget your mortgage promise value. On £30k it may only be between £1500-£2500 but that would be lost on surrender.

Gorgeous_George

I don't think that I will be cashing it in early.

However, if I'd cashed it in last month and invested the money elsewhere, I may have earned £114 (at 6% pa). After tax this would be £91.50. Add on the £45 premium that I have paid this month and the policy needs to have risen by £136.50 for the policy to have been worth keeping for a month (from May to June).

August will be interesting.



GG

Gorgeous_George

The answer is:
Basic value 20,542.16
Final Bonus 2,506.15
Total plan value 23,048.31

So, it seems keeping it was a good option last month with an effective IR of almost 7%.



GG

EdInvestor

dunstonh wrote: »

Also, dont forget your mortgage promise value. On £30k it may only be between £1500-£2500 but that would be lost on surrender.

I wouldn't hold your breath that there is any money in the kitty for this.

dunstonh

I wouldn't hold your breath that there is any money in the kitty for this.

Except there is and they are still paying it. It just isnt being applied for any more increases and is capped at a maximum.

xtratime

I,ve been sitting on the fence for the last year now with my two Standard Life policies (lost Cost & Homeplan).
Judging on the performance each month over the past year, I,m glad I,m still sitting there and having jumped but I think its worth keeping a close eye on things.

Besides the money set aside for the endowment promises, am I not right in saying they have another pot of money in the With Profits fund that they are not sure what to do with ?

Gorgeous_George

Today (1 Jul) the surrender value has grown to
Basic Value...£20625.28
Final Bonus...£2598.79
Total.............£23224.07

If these increases continue, the policy will return £29,367 against an original aspiration of £30K.

The forecast maturity values provided by SL have also increased
31/05/2007...£26,400...£27,600...£28,800.00
01/07/2007...£26,700....£27,800...£29,000.00

All in all, I consider that it is worth keeping - at the moment.



GG

dunstonh

GG, if that continues, then the mortgage promise value you have should fill that gap.

Gorgeous_George

Latest update looks encouraging. Today (1 Aug) the surrender value has jumped to
Basic Value...£20702.46
Final Bonus...£3963.60
Total.............£24672.06

From September last year (£21512.62) that is a huge increase in surrender value even taking in to account the additional £540 that I have paid in. If these increases continue, the policy will return a healthy surplus against an original target of £30K.

The forecast maturity values provided by SL have also increased
31/05/2007...£26,400...£27,600...£28,800
01/07/2007...£26,700...£27,800...£29,000
01/08/2007...£28,000...£29,200...£30,400

All in all, dunstonh's "keep it" recommendation looks an odds-on favourite.



GG

cm233lh

GG, how do you get monthly statements? SL only send me a statement once a year.