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Money matters

Want to get rid our endowment policies....

14 replies

petunia · 25/04/2007 20:08

After yet another year with our dismally performing Standard Life endowment policies, we'd like to get rid of them.
Any suggestions as where we go from here. Are these companies that buy endowment policies off you any good?

OP posts:
BigGitDad · 25/04/2007 20:34

How long have you got to go, most companies like to buy them within 10 yrs to maturity. Also what type of endowment? Unit Linked or With Profits?

petunia · 25/04/2007 22:04

Both policies have 14 years to run and are both "with-profits" ones.

OP posts:
wheresthehamster · 25/04/2007 22:56

Standard Life are utter crap aren't they?
Our main pensions are with them.

Last year we cashed in our mortgage endowment policy with L & G and were surprised at how much more we got than was showing on the last statement. So if you haven't done so you could ask them first for a cash-in value and if it's not as much as you would like you at least have a ball-park figure if you decide to investigate the companies that buy them. (Sorry no personal experience of them).

jomist · 25/04/2007 23:02

I use this for any financial information. Martyn Lewis is my hero - saved me a fortune!

jomist · 25/04/2007 23:04

First time I've tried a link and clearly need practice = www.moneysavingexpert.com

petunia · 26/04/2007 09:29

Ah yes, moneysavingexpert.com. The amount DH has spent as a result of that site! .
Thanks all for your help.

OP posts:
BigGitDad · 26/04/2007 17:49

With 14 years to go you might struggle to sell them second hand, have a search on the net. You can always see what other companies will offer you. Usually you would get upto 20% more than you would be surrendering them.
However I would ask yourself if they are such bad deals why are other people buying them?
Really you need to discuss this with an Independant Financial Adviser who will have a better idea of your circumstances and so will be able to advise you better.

petunia · 26/04/2007 17:54

DH works with someone whose Dad is an IFA, so I think we'll be calling him for some advice.
Thanks for your help.

OP posts:
Gobbledigook · 26/04/2007 17:55

Hmm, are they still doing badly? Ours were on amber alert but our recent update was 'green' - on target.

BigGitDad · 26/04/2007 18:16

The markets have made a good recovery in the last three years so that should be reflected in your bonuses in the next few years however the payouts will never reach the giddy heights of 10-15 years ago. The life insurance companies have learnt their lesson.

petunia · 27/04/2007 09:51

Ours are still on "red alert" and last years growth was only 1.50%! Really dire!

OP posts:
somersetmum · 27/04/2007 09:57

Think carefully before selling them and if you do, make sure you know exactly what the company intends to do with them. Do not sell to an individual, for example, as the policy will still be covering YOUR life, regardless of who owns it. The quickest way they could ensure it paid out would be upon your death, ala Richard Hillman/Emily Bishop on Corrie.
This is the reason we chose to cash ours in rather than sell them on.

BigGitDad · 27/04/2007 12:21

But the nature of With Profit policies means you have an annual bonus which is never a huge amount anyway. These bonuses are added and are guaranteed, then at the end of the term you have an additional final bonus which is usually a substantial lump sum which is added to the existing guaranteed money. You need to see a financial adviser who can contact Standard Life (or do it yourself) and see what their bonus rates are at the moment and what they could be paying out, were the policy maturing today. That will give you a better idea of its worth
Also I have never heard of someone being knocked off so an endowment can pay out! I am sure and check this out but when you sell the policy on the life cover must be taken away or something. How would they get death certificates etc?

somersetmum · 27/04/2007 13:21

BigGitDad - read this re: life cover and traded endowment policies.

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