Maturing Endowment Query

NAR

This is a question in relation to a Standard Life Endowment Policy. In the past couple of years there have been bonus rate reductions, in February and August, which have affected the value of policies.

Has anyone had a policy that matured that had a Date of Last Premium in January or July with a Maturity Date in February or August. If so was the value of the policy reduced after the Date of the Last Premium?

I have asked Standard Life, but haven't received a reply thus far. As there is a lot of money involved I would appreciate only getting factual replies, rather that opinions.

NAR

Bump
Has noone any experience of this?

dunstonh

Not in the timescale you are looking at I'm afraid.

jrh2254

My last premium was end July 05, with maturity end Aug 05.

The initial estimated maturity value was marginally lower than the amount eventually paid on maturity. Still 18% below target amount and 24% below what I was expecting!!!

NAR

You say "The initial estimated maturity value was marginally lower than the amount eventually paid on maturity."

Was yours a 25 year policy? I follow my policy value on-line every month; is this how you knew the difference you have stated?

Why I ask is my policy was whacked by over £3k in August and I worry that a similar amount is whacked again next February.

jrh2254

Mine was a 17 year policy.

Standard Life send you a lettter approx 6 weeks before your policy matures which contains an estimated but not guaranteed maturity value. I received this is July.

I have been tracking my policy value consistently since before I received my red letter. Virtually overnight all the projections fell by circa 20%!!

NAR

jrh2254 wrote:

Standard Life send you a lettter approx 6 weeks before your policy matures which contains an estimated but not guaranteed maturity value

This is what bothers me. The next round of bonus cuts will happen on 1st February and my policy doesn't mature until the 9th February.

Wonder will Standard Life be nice to their policyholders in February to try and get demutualisation passed?

NAR

Just had letter from Standard Life confirming "Your plans value would be affected if any changes to policy values were implemented on 1 February 2006."

EdInvestor

I must say I find it a bit puzzling that people just watch the value of their policy going down year after year - as the compamy has said it will - but take no action when they can always cash it in.

NAR

Because there is a financial penalty for selling your policy before maturity. People hope that the value of policy reduction is less than the financial penalty. Also people with a long time to go to maturity of their policies are hoping that the markets improve enough to make it worthwhile to hold onto them.
Hindsight is a wonderful thing.

jrh2254

It was reported by Standard Life on Money Box yesterday that the cut-off for maturing policies was the 18th October 2005. So I read this as meaning that if your policy matures between 19th October 2005 and the date of demutilisation then you remain a member and get the windfall!
Mine matured in August 2005 :mad: