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

dunstonh

Nevertheless this sort of thing doesn't help endowments coming up to maturity with a fixed target to meet, though it's neither here nor there for people starting out saving.

It helps endowments that are further away though and can currently buy investmentss whether directly or indirectly (in case of WP) 10% cheaper than a month ago.

Gorgeous_George

This month's figures are as follows (last month in brackets):
Basic Value...£20,874.93...(£20,731.68)
Final Bonus...£4,118.63........(£4,039.83)
Total.............£24,993.56.......(£24,831.51)

No great surprise.

Surrender values are £28,200 (+ £100); £29,300 (+£100) and £30,400 (-) at 3.75%, 5.5% and 7.25% respectively.

I think I'll ask AAP for a quote.



GG

loveabargin

Hi GG
I have read your posts with interest, as I too have a SL endowment with profits taken out in may 86 paying £39 a month maturing in may 2011 to cover a mortgage. Thankfully I now have no mortgage, and really dont know what to do for the best with this policy " surrender it or not " now that I have the extra shares. I have just registered online with SL to check what it's worth to date through your link (thanks for that), and will be interested to hear if your AAP quote is worth it.

EdInvestor

You can apply for a quote to all the traders at once through this site:

https://www.apmm.org

loveabargin

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

dunstonh I spoke with standard life on friday about this mortgage promise value. They told me that this applies only to policies that had a short fall in 2000 ( mine was on target in this year) and any policies after this date is not but they will look at the policy at maturity with no promise of getting this.

policy to cover £30000.00 mortgage at the time
£39.10 month started May86 to finnish May2011
Basic value 15374.80
final bonus 2529.35
total 179004.15

I have no mortgage and a non tax payer
Should I keep it or sell it

EdInvestor

loveabargin wrote: »

policy to cover £30000.00 mortgage at the time
£39.10 month started May86 to finnish May2011
Basic value 15374.80
final bonus 2529.35
total 179004.15

I have no mortgage and a non tax payer
Should I keep it or sell it

Please post the maturity projections and surrender value.

Mr_helpful

EdInvestor wrote: »

Why not cash it in and put 7k in your S&S ISA in some decent funds where you can hope to double the return (at least) and use the rest to reduce the mortgage?

There's no problem about taking a punt but using an underperforming endowment to do so just doesn't make sense to me.

Do you have any suggestions for "decent funds" We all can find out wht is performing well today but what funds are going to be the performers of the future? Endowments were performing at one time (mostly when they were sold) but who is going to be the next best thing since sliced bread?

loveabargin

EdInvestor wrote: »

Please post the maturity projections and surrender value.

Hi Ed

surrender value today £17982.70

projections on maturity are 3.75% =21500 5.5% =22800 and 7.25% 24200

it dont look good does it.

thanks

toonfish

George has an endowment policy he appears happy with, on target to pay a small surplus - Ed's advice is to sell it through apmm.

I don't know why you ask for premium, surrender value, bonus to date, projected maturity value and so forth - your "advice" is always exactly the same!

EdInvestor

loveabargin wrote: »

projections on maturity are 3.75% =21500 5.5% =22800 and 7.25% 24200

If you surrenered the endowment today and put it on deposit at a net return of 5% also paying in the premiums to maturity your guaranteed return would be 23,929.

This is almost as high as SL's projection for 7.25% growth, which is not of course guaranteed.

If you don;t need the life cover I wouldn't see much point in holding this one.You could see if you could get a bit more by selling at www.apmm.org

your "advice" is always exactly the same!

It will tend to be similar for policies from the same company (this is a Std Life thread) but there are quite big variations now between the worst of the zombies and the better firms.

Also, with interest rates at high levels at present, endowments in general can't really compete because they have high historic charges and returns are taxed.At present someone with a mortgage on a rate of 7% and a largeish endowment at say Phoenix can get an immediate return of almost double the endowment's likely performance just by cashing in and paying off part of the mortgage.