Standard Life Endowment. Help Please!!

catsneel

HI, HOPE SMEONE CAN ADVISE.
We took out this policy in 1987 and the policy matures in 2019.
This is a Unit Linked & 100% with profits policy and could have a final bonus.
It guarantees to pay out £33,00 on first death.
We have so far payed in at June -£9,537.
Cash in value in June-£9,465.
Our monthly payment is £85.92.

Projection value- low rate £22,800
Intermediate rate-£27,100
High rate- £32,300.
There could be a final bonus added.

Current terminal bonus-£1,030.85
Current fund -£8,435.04
Current value- £9,4654.89

Our present mortgage is now a repayment mortgage of £64,000. Should we surrender this policy , or is it worth hanging on to ?
Hope someone out there can HELP
Thanks

U've_been_framed

You have been paying in for 10 years (I assume you meant 1997 and not 1987) and the current value is less than you have paid in.
You have 3 options
1 Cash it in. You will be out of pocket.
2 Sell it. Try some of the following:-

A1 Policy Shop -- http://www.endowments.com/
Surrenda Link -- http://www.surrendalink.u-net.com/
Beale Dobie -- http://www.bealedobie.co.uk/
IPTC -- http://www.endowments-direct.co.uk/
Neville James -- http://www.neville-james.co.uk/
AAP -- http://www.aap.co.uk/index.html
Policy Trading Company -- http://www.policytrading.co.uk/
Foster & Cranfield -- http://www.foster-and-cranfield.co.uk/

Here's one person's account of selling his endowment http://www.fool.co.uk/bribble/1999/bribble990616.htm

3 Make it "paid up". Stop paying contributions and allow the money already paid in to gather interest.

Use your monthly premiums to help pay off your mortgage, or invest your money somewhere more profitable such as an ISA.

Good Luck

catsneel

Thanks for replying.
Yes my mistake , took out the policy in '97.
Iv'e been told we can't sell this type of policy unfortunately, but thanks anyway.

Threewheeler

Hi, I've got a similiar endowment policy, however the important thing to remember is that you have an insurance policy which would pay up on death.
This fact alone prevented me from cashing it in, I'm just ahead on my payments to cash value and as long as that is the case, dissapointing though it is I will stay paying in. Hope this angle helps you, if necessary bolster up with another savings scheme to achieve the target figures.

catsneel

Thanks for that advice 'threewheeler' that's another possibility,
cheers.!

catsneel

Help!! Dunstonh Where Are You? I Eed Your Advice Pleeeeeeease!!

catsneel

Help!! Dunstonh Where Are You? I Need Your Advice Pleeeeeeease!!

EdInvestor

catsneel wrote: »

Our present mortgage is now a repayment mortgage of £64,000. Should we surrender this policy , or is it worth hanging on to ?

What interest rate are you paying on the mortgage?

catsneel

hi Edinvester,
So glad someone is willing to give advice.
The interest rate at the moment it 5.59 which ends in July this year. We have been offered 6.09 for 12 months with the same 'one account'.
Thanks .

EdInvestor

catsneel wrote: »

Projection value-
low rate £22,800
Intermediate rate-£27,100
High rate- £32,300.

So let's say you surrender the policy and use the lump sum to reduce your mortgage at an interest rate of 6%, also increasing the monthly mortgage payment by the amount of the endowment premium to maturity.

At that point you would have a return of 37,016, which is quite a lot more than SL's estimated high rate (unguaranteed) return - which they are unlikely to achieve.

You may also need to make an allowance for replacement of life cover, if you need it, but basically there's little point in hanging onto this policy IMHO.

There is no point in taking a risk when the guaranteed no-risk return is likely to be higher.

catsneel

Hi Edinvestor,
Thanks for that. It just confirms my own thoughts on the policy. Thanks for taking the time to reply.