Click Here to sell your endowment policy
To sell an endowment
policy instead of cashing in endowment early, use the flashing button at the top of this page.
Cashing In With Profits Endowment Policy
- What does cashing in endowment policy mean?
- It means that the endowment policy holder has decided to end the
endowment early and surrender it back to the insurance company in
exchange for a cash some of money.
- How do i cash in my endowment early?
- It is a simple process. You contact the insurance company named on
the endowment policy and tell them who you are and the endowment
policy number. Because cashing in the endowment means you get a lump
some of cash, it is important that the endowment company is able to
confirm your identity so that the cash doesn't go to the wrong
person. For this reason you will be asked quite a few questions to
confirm. The company will give you a cash in early figure (this is
technically known as the "surrender value"). They will
offer you replacement life assurance for the life assurance that
will terminate when you cash the endowment policy in early. They
will then send you some forms to fill in and once you return them
they will send you a cheque of pay direct into your bank account by
bank transfer. You will also need to cancel your direct debit at the
bank to stop them taking any more premiums.
- How much money will i get for cashing in
early? - The longer you leave it the more you will
get, just like a savings account. But with an endowment there is
an element of growth within the fund so it is more of an
investment account than a savings account. Of course if the growth
is negligible or you could get more by investing it somewhere else
than that needs to be taken onto account when making the decision
to cash in the endowment or keep it.
- When can i cash my endowment in?
- the quick answer is you can cash in an endowment at any time.
However, as the salesman's commission is made up of the first
year or so of your premiums, if you cash in too early you will
get nothing at all or nowhere near you investment back. An
endowment policy was never designed for cashing in early but
many are, as the warning letters prompt some sort of action.
- Who can advise me on whether to cash
in the endowment early? - An independent
financial adviser is the best person to turn too to get advice
on this, but remember that under the new FCA rules he cannot
take commission for his product sales so he will charge a fee
for the advice. Perhaps a first start is to look at how well
the endowment policy has grown so far, how much is needed to
reach the target maturity value (often the mortgage amount, as
many endowments were used as mortgage repayment vehicles) and
how much you will be putting in up to the maturity date. If
the performance is bad, and target gap is large, and the
premiums are relatively low, then it might require a sudden
and substantial growth spurt to reach the target. It's an
unknown, but a bit of common sense will go a long way in
helping make that decision.
- What about my mortgage? - If the mortgage is endowment
backed you can change it a repayment by contacting the lender.
You can use the cash in value of the endowment to clear a
substantial sum of the mortgage and change the remainder to
repayment. You can trade down in house value so the new
projected amount will match it. You can increase the size of
the premium you pay into the endowment instead of cashing it
in so that it is financially healthier.
- Can i sell the endowment policy instead of cashing in
early? - yes and no. If it is a unit linked policy then no, as
the endowment buyer wont buy a unit linked policy. If it is a
with profits policy then yes, provided it is suitable.
Generally speaking the only way you can tell if your with
profits endowment policy is attractive enough to the endowment
buyers to make an offer for it, is to fill in an
endowment selling form and
await the news. It does not commit you in any way but the
increase in money you could receive for selling instead
of surrendering is very significant.
Selling endowment to one of only six endowment policy traders that
are members of the Association of Policy Market Makers, instead of cashing in endowments early, can be
achieved by using the "sell endowment" link at the top of the page, or
by clicking here
The information on this web site is intended as
"information only" and should not be taken as "advice".
If you are unsure about what to do, if anything,
about your endowment policy, you should consider taking advice from an
independent financial adviser who is regulated by the Financial Services