Paid off mortgage, what to do with Endowments?

DebtphobicDeirdre

I have recently managed to pay off my mortgage but I am still paying into the original 2 endowment policies. Now that they don't cover the mortgage, do they still provide us with a form of life assurance? The original policies were with Standard Life and we pay £60 per month for a sum assured of £47k. We think we might keep them as a form of savings/life insurance if they will still pay out if one of us dies. Any opinions on whether this is a good idea?

EdInvestor

Post some info on the policies

Guaranteed sum assured
Declared bonuses
Surrendrer value
Monthly premium
Maturity date
maturity forecasts

Have you costed the price of replacment life cover?

Try here to see if you can sell the policies:

https://www.apmm.org

dunstonh

As it is standard life we will also need to know the current terminal bonus (as they dont include that in the projections) and the mortgage promise values (as they arent included either).

Failure to include those in any calculation for ongoing suitability could cost you thousands, if not tens of thousands. (more likely high single figure thousands on a 47k sum assured).

DebtphobicDeirdre

Thanks for replies, but I'm only really whether the life insurance component still pays out even though it is not needed to repay the mortgage. I would have thought that it would, but not sure.

YorkshireBoy

DebtphobicDeirdre wrote: »

Thanks for replies, but I'm only really whether the life insurance component still pays out even though it is not needed to repay the mortgage. I would have thought that it would, but not sure.

What did Standard Life say when you asked them?

dunstonh

The endowment will continue and pay out whether there is a mortgage or not.

DebtphobicDeirdre

:T Thanks for the info. It will definitely sound strange to everyone but I am quite fond of my Standard Life policies. They helped me to get on the property ladder at the age of 22 and they coughed up compensation when the endowments were obviously going to fall short of the mortgage they were meant to cover. We also got free shares at flotation. If they give us a bit of life insurance (don't have any other apart from DH having good death benefit from work pension) I will keep them and take my chance as to what they pay out in 2013 and 2015. Thanks for the advice though- its nice to know you are all out there.

dunstonh

Many standard life endowments are heading back to surplus positions. So, you may well find you end up with what it was meant to do (even if projections say otherwise as SL projections are flawed)