Help me understand :(

Lara-

Hello

I've just downloaded my annual Endowment Statement with Standard Life and, as usual, I've no idea what it all means other than it wouldn't have paid off our £75,000 mortgage (which we overpaid and now it's at about £35,000)

The Endowment is an Early Maturity Plan started in June 1991 matures June 2016

Sum assured £24375
Bonus added to plan £12165
Min amount payable at maturity £36540

Current Value £35,948
Final Bonus £9105
Total Current Value (as at 1-2-16) £45053.85
MEP (if payable) between £5880 - £8820

My question is, what might we expect to get paid out in June?

Is it -
£24375 (sum assured)
£36540 (min amount payable at maturity)
£35948 (current value)
£45053 (total current value)
or might it be some other figure

I really need to know if I can pay off my mortgage

HappyMJ

Should be close to Total Current Value plus the MEP if it's payable which it should be.

You'll get enough to clear the mortgage and have some left over.

Lara-

Thank you so much. I really hadn't a clue when faced with all those differing figures.

McKneff

That moment when you hand the cheque over to clear your mortgage is priceless.

Enjoy and celebrate, its a brillinat feeling owing nobody nowt

Lara-

Thanks, we will
It's the only debt we ever had.

PetersJ

Allow me to try and explain the meaning of the various figures in simple terms

Sum assured - this was the minimum the fund was ever going to pay you back at completion, assuming you kept to plan. Essentially it implies no growth, and is probably less than the total you paid in (due to fees)

Bonus added to plan - each year a bonus was hopefully added to the plan.
Once added to the plan, they cannot be removed. So essentially money banked into the product.
It was these bonuses (on top of the assured amount and final bonus) that should have got you to the originally planned sum of £75k
Unfortunately, the plans didn;t grow as expected, so the bonuses weren't as big as expected, so the plans don't make the intended value.

Min amount payable at maturity - the sum of the above. Essentially what it says (assuming you keep to the plan to the end). As this is the very least you can get back (assuming you keep to the plan) and it's more than you owe on your mortgage, you will definitely have enough.

Current value - slightly less than the Min amount payable at maturity as you haven't paid the last few premiums yet.
(It's the current value of the plan, but may not be what you would get if you cashed it in today as they might hit you with some charges if you did that)

Final bonus - essentially one big bonus at the end to ensure you keep the plan to the end. This isn't guaranteed, yet as you are so close to the end, you can consider you will get it.

Total Current Value - Current Value plus Final Bonus
(otherwise not meaning too much)

MEP - I think this is unique to Standard Life and essentially is a further final bonus depending on how the plan has performed. As you are now so close to maturity, you should get something from the range mentioned.

So, with being so close to maturity, you should expect to get, assuming you keep up the payments until maturity

Min amount payable at maturity
+
Final Bonus
+
MEP

Lara-

I just wanted to update you all because our Endowment 'matured' and we have received the funds. The total we got was £55146! More than enough to settle the mortgage of just under £35,000

Very happy lady here

Thank you all for your help in helping me understand.

chelseablue

Wow, must be a great feeling!


Looking forward to joining you in 33 years time :rotfl: