Standard Life, Europe's largest mutual life assurance company, has completed a review of bonus rates and payouts, the key points of which are as follows:
Payouts remain very competitive in comparison to other providers. The changes announced today bring payouts at maturity and retirement more closely into line with investment returns to date. For example, the payout on a Standard Life 25-year with profits endowment policy based on £50 per month is now £69,386. This represents an annual return of 10.7% on total premiums of £15,000.
As a consequence of mutuality, payouts on 25-year endowments are currently about 11% higher than they would otherwise be. Simon Douglas, Managing Director, Marketing, said:"Standard Life customers are benefiting from investing with a financially strong mutual. Our payouts remain very competitive and compare favourably to other forms of investment.
For example, a 30-year-old man who took out an endowment, investing £15,000 over 25 years, would receive a payout of nearly £70,000."
Our view
This is good news for Standard Life policholders although you have to be aware that Standard did make significant reductions earlier this year which, in the scheme of things, means that there have been no improvements to the cuts made earlier.
You still need to check and keep abreast with your policies regularly.