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

xtratime

George,

Like yourself I am keeping a close eye on my two SL endowments (low cost and unit linked) both due to expire in 2014 always sitting on the fence trying to decide whether to sell or keep having already converted 2/3 of my morgage to repayment.

Generally (except for a one off occasion) over the past year, the projection values all all the rates having been increasing slowly month on month with the values at the highest rates up about 6% on this time last year.

Does this mean that if the projection at this highest rate is constantly increasing, that both policies are returning greater than this rate over this time period?

Although, I no longer need it for the morgage, the life insurance is always there as an added bonus which is worth an additional few pounds an month plus there is a possible extra two thousand from the endowment promise.

passion8

After reading Georgeous George's link in post #12, (thanks for that), my husband registered online and was finally able to view our statement.

Our endowment with SL, which was on red alert - high risk of shortfall, matures in May 2008. It appears that there might not be a shortfall now, but I thought I'd double check. So now for the dumb question

As of yesterday's date it's value was £17,674.00. The endowment is for £17,500.

Online, it shows that there is a "Total Bonus applied" of £7,880.00.

Is there the remotest chance that the Total Bonus applied is an expected bonus that's added to the £17,674? Or am I away with the fairies again?

Thanks in advance.

(If anyone answers this with a question, can you make it an easy question please? I'm still not sure what's what around these parts )

dunstonh

Standard Life do have a history of suddenly boosting bonuses just before maturity.

Annual bonuses cannot be reduced but terminal/final bonuses can be. Next bonus announcement is due Feb 08.

EdInvestor

passion8 wrote: »

Our endowment with SL, which was on red alert - high risk of shortfall, matures in May 2008. It appears that there might not be a shortfall now, but I thought I'd double check.As of yesterday's date it's value was £17,674.00. The endowment is for £17,500.

Well that's nice to know.Let's hope nothing unpleasant happens between now and May.:)

Online, it shows that there is a "Total Bonus applied" of £7,880.00.
Is there the remotest chance that the Total Bonus applied is an expected bonus that's added to the £17,674?

Total policy value is made up of the guaranteed sum assured, the guaranteed declared reversionary bonuses and the unguaranteed terminal bonus. The 7,880 figure is probably the declared bonuses, as TBs are now quite small as a proportion of the total compared with a few years ago

However to find out I suggest you ring up SL and ask.You could also ask for the surrender value of the policy if you cashed it in now, and the portion of that value which is terminal bonus. That should give you an idea of how much you will get, adding on the reversionary bonus you can expect next Feb.

passion8

Thanks dunstanh. It looks much better than the February 2006 forecast of £14,175.

Thanks also EdInvestor; will do as suggested and I'll be keeping my fingers crossed between now and next May .

Edited to add:

If cashed in tomorrow, the Guaranteed sum paid would be: £14,264 and a calculated final bonus of £3,715.

So I think I was away with the fairies when I thought the £7,880 was added to the £17,674

I think we'll make about £400 on top of the £17,500 - or thereabouts.

Gorgeous_George

Latest update is as follows...

Nov-07....£20,958.26....£4,195.85...£25,154.11

Last year it was worth...

Nov-06....£19,961.65....£1,862.43...£21,824.08

...and I've paid in another £540 (£45 per month). I make it equivalent to 11.97% tax-free over the 12 months.

I'm looking at cashing in soon but will keep this thread up-to-date until I do.

Thanks for all your great advice (or unqualified commentaries if you prefer) - particularly dunstonh and EdInvestor.



GG

Gorgeous_George

This month's figures are as follows (last month in brackets):

Basic Value...£21,041,66...(£20,958.26)
Final Bonus...£4,273.57...(£4,195.85)
Total.............£25,315.23...(£25,154.11)


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





GG

dunstonh

Its good that it is heading nicely towards achieving target and possibly even a surplus.

I'm pleased you are keeping us updated GG. Personally, as I have been quite vocal in saying that these SL plans are not as bad as some have made out. Your projections have increased by £2000 in just 6 months and thats in a 6 month period where many sectors have made nothing.

Gorgeous_George

I´m almost tempted to keep it just so I can provide these updates

As it matures in Jan 2010, I am seriously considering cashing in now - just in case it all goes belly up.

GG

MissMoneypenny

Gorgeous_George wrote: »

I´m almost tempted to keep it just so I can provide these updates

I'm enjoying reading this thread GG. It reminds me to think about my Standard Life Endowment. Although my policy matures after yours and doesn't have the mortgage promise. They told me mine was on target when that was offered and it was only for policies taken out after mine. I hope they weren't fobbing me off.