sell my endowments 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

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 Authority