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Standard Life Endowment Policy - Keep or Surrender?

Hi, can anyone give me some advice on the following please. I have an endowment policy - no longer used against mortgage which was changed to repayment and will be paid within 3 months. I'm wondering if it is worthwhile keeping the policy or should i sell/cash surrender it? Details are:

Policy Start: July 1988 Maturity Date: July 2013 Monthly Payment: £37.17
Current Value £14162
Last Declared Bonus £54.88
Total Bonuses Applied: £6436
Projected Illustrations at 2013:
3.75% pa = £18600 5.5% pa = £20200 £7.25%pa £22000

When policy was originally taken out it was supposed to pay a £28500 mortgage PLUS give us a lump sum of approximately £8000!

I'd be grateful for any advice.

Comments

  • dunstonh
    dunstonh Posts: 120,309 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    When policy was originally taken out it was supposed to pay a £28500 mortgage PLUS give us a lump sum of approximately £8000!

    Still might. SL maturities still have some paying surplus and most of these had shortfall projections just like yours.

    What is the guaranteed sum assured?
    What is the mortgage promise value range?
    what is the final bonus accrued to date?
    Will you need replacement life cover, if so, how much will that cost per month?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • irvine
    irvine Posts: 33 Forumite
    Many thanks for your reply. I have asked Standard Life for answers to above questions and will get back to you as soon as I have information. Once again - thank you.
  • Dick_here
    Dick_here Posts: 1,605 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I'll be interested in their answer as to whether you need replacement life cover...
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • How much life cover does it provide? £28,500? If so, take the £14K and you only need £14.5K life cover to match that lost by surrendering.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    To do a calculation, also need to know the surrender value.
    Trying to keep it simple...;)
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