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Endowments - Should I cash in my policy ?
PinkPanther_3
Posts: 3 Newbie
I have a With Profits Endowment policy with Standard Life which was taken out 13 years ago (25 year policy) so just 12 to go.
The latest statement has been flagged as Red Alert (High Risk) of failing to pay off my £70k mortgage.
Over the course of 13 years I have paid in £14,980.68 and the latest surrender value is £15,800 approx and this includes any bonuses.
Standard Life made a promise to chip in with a sum towards the shortfall. That promise was made back in May of 2004 and at that time amounted to about £15,000 across the board for Payouts on the Low, Medium or High side. Then in October they reneaged on their 'Promise' cutting this to between £6k and £9k - whose to say in 2006 this won't disappear altogether, not that I am cynical or anything.
What I really want to know is would my best option now be to surrender the policy or as I am currently investigating Sell it to an Endowment trader or similar such organisation. If I do decide to do this what should I watch out for ? I am very reluctant to may any further money into the policy as I think it's good money after bad.
Basically the shortfall which was projected on my £70k mortgage stands at anywhere between £26k and £40k and of course these figures are based on growth rates of anywhere between 4% and 8% - whilst the actually growth rate has or will be only around 2% for 2005.
I have other life cover so don't necessarily need the policy for that and I am planning to convert all my mortgage over to Repayment to guarantee that it's paid off before I retire.
I would also plan to put any money I get back from either surrendering or selling my endowment towards my current outstanding mortgage and reduce my overall debts.
Any advice or guidance would be much appreciated
Thanks
The latest statement has been flagged as Red Alert (High Risk) of failing to pay off my £70k mortgage.
Over the course of 13 years I have paid in £14,980.68 and the latest surrender value is £15,800 approx and this includes any bonuses.
Standard Life made a promise to chip in with a sum towards the shortfall. That promise was made back in May of 2004 and at that time amounted to about £15,000 across the board for Payouts on the Low, Medium or High side. Then in October they reneaged on their 'Promise' cutting this to between £6k and £9k - whose to say in 2006 this won't disappear altogether, not that I am cynical or anything.
What I really want to know is would my best option now be to surrender the policy or as I am currently investigating Sell it to an Endowment trader or similar such organisation. If I do decide to do this what should I watch out for ? I am very reluctant to may any further money into the policy as I think it's good money after bad.
Basically the shortfall which was projected on my £70k mortgage stands at anywhere between £26k and £40k and of course these figures are based on growth rates of anywhere between 4% and 8% - whilst the actually growth rate has or will be only around 2% for 2005.
I have other life cover so don't necessarily need the policy for that and I am planning to convert all my mortgage over to Repayment to guarantee that it's paid off before I retire.
I would also plan to put any money I get back from either surrendering or selling my endowment towards my current outstanding mortgage and reduce my overall debts.
Any advice or guidance would be much appreciated
Thanks
0
Comments
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Hello PP
I should hang onto it until next year so that you benfit from the demutualisation bonus and then review the situation after that
Trying to keep it simple...
0 -
Yeah, why you want to do it now? Wait till you get your bonus and then...0
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