Standard Life announces With Profits bonus for endowment policy holders

02 February 2007 / by None
Standard Life has announced a With Profits bonus thanks to strong returns on with profit assets during 2006.

This has had a positive impact on values, and has resulted in pay outs across all types of policy, with the estimated return for mortgage endowments at 10.9%.

In real terms, this means that the maturity payout on a 20-year savings endowment policy taken out by a man aged 29 for £50 per month is now £22,224 – an increase in value of £2,943 over the past year.

Jim Black, Actuarial Director, Standard Life Assurance Limited, said: "Equity markets performed well during 2006 and this, along with other investment factors, helped us achieve a strong return on with profits assets.

"As a consequence, customers have benefited from increases in the value of their policies over the last year. For example, endowment policyholders will have seen, on average, an investment return of 11 per cent since February 2006.

"With target equity backing ratios of anything up to 62.5%, or 71% for stakeholder policies," continued Mr Black, "customers are now well placed to take advantage of any future upside and, in addition, many types of with profits policies have valuable guarantees.

"We continue to believe that with profits can still form a valuable part of a balanced investment portfolio," he said.

Find out more about Standard Life Endowment