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Making endowment paid up
timbo45
Posts: 1 Newbie
Hi, first post here so please be gentle if what i'm asking is daft or ignorant.
We have just been awarded compensation from Standard Life for mis-selling on an endowment. We are already overpaying the mortgage to compensate for underperformance, but am now considering what to do with the endowment. I am tempted to make it paid up and wait for demutualisation and review the situation then, but I have questions about the consequences of making a policy paid up. Primarily will it affect my prospects for a windfall payment?
Secondly is making it paid up a wise thing to do, the projected shortfall at 4% growth is£14000. The surrender value at present is £7300 but the minimum paid at maturity is £15000 thereby making surrender not very attractive. If I make it paid up and contribute no more will I still be in line for £15000 on maturity?
Anyone got any advice?
Many thanks
We have just been awarded compensation from Standard Life for mis-selling on an endowment. We are already overpaying the mortgage to compensate for underperformance, but am now considering what to do with the endowment. I am tempted to make it paid up and wait for demutualisation and review the situation then, but I have questions about the consequences of making a policy paid up. Primarily will it affect my prospects for a windfall payment?
Secondly is making it paid up a wise thing to do, the projected shortfall at 4% growth is£14000. The surrender value at present is £7300 but the minimum paid at maturity is £15000 thereby making surrender not very attractive. If I make it paid up and contribute no more will I still be in line for £15000 on maturity?
Anyone got any advice?
Many thanks
0
Comments
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Read some standard life posts on this forum from a few weeks back.
They explain why the projected 4% figure is less than the guaranteed minimum (which shouldnt be possible).
The posts should also help you with your decision on what you could do.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.0
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