Surrendering Endowment Policies
If you are considering surrendering endowment policies, for what ever reason, then it would be wise to get quotes for selling the policies as opposed to surrendering.
What's the difference between surrendering my endowment policies or selling them ? The potential for more money for the policy!
Given that endowment policies are a long term investment that are designed to run all the way through to maturity, surrendering endowment policies is viewed by investment advisors as a last resort, even though there is a very healthy market for trading endowment policies with buyers eager to pay more than the surrender value quoted by the issuing life office.
Is surrendering endowment policies an easy thing to do ? Very easy, as the issuing life office will simply deal with all the paperwork and issue a cheque in the course of time. However, selling endowment policies should be no more complicated than surrendering them, and can result in a significant increase in the cash you receive.
How is it possible that surrendering my endowment policies back to the issuing life office nets me less cash, potentially, than selling them on the endowment market place ? Quite simply the person or institution that buys the endowment policies is investing in a policy which already has enjoyed a period of growth, and in the case of with profits endowment policies, this growth is locked in. It means that the buyer has only to maintain the premiums (quite a few of which you have already funded) through the end date, where upon the policy pays out to the new buyer
Surrendering endowment policies also results in a loss of the life assurance attached, so alternative life cover should be considered, especially if there is no other good alternative life cover in the individuals portfolio.
So if you find yourself saying "I am surrendering my endowment policies" before committing to it, use the endowment selling facility provided here to see if a better cash price can be obtained.
This web site is designed purely to provide information, and enable anyone who wants to sell an endowment policy with the facility to have their endowment policy valued and the option to sell their endowment policy to an endowment policy buyer.
Click this link to see what the Financial Services Authority has to say to the question "what if I want to trade in my endowment policy"
The Financial Services Authority is the independent regulator set up by Government to look after the financial services industry and protect consumers.
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