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Selling Endowments

The most interesting aspect of life, that is, its unpredictability, has led to the development of traded endowment policies (TEPs), where a market has grown around them.

Many policy holders need to cash in their endowment before it reaches maturity due to changes in circumstances like moving house, redundancy, divorce, a pressing need to raise quick capital or foreseeing a fall in profit. They may choose to surrender the policy to the insurance company who will quote a price known as the surrender value. This value is usually lower than the market value of the policy.

 

So, if you need to surrender your endowment early, it is worth looking into the option of selling it. There are now many companies who are keen to buy endowments and will make you an offer of a price higher than the surrender value. If the policy is suitable to be traded, this can be an increase on the surrender value from 2% - 15% or even more. It can in turn be sold to investors who will benefit from the gains at full maturity of the policy. Once sold, the new owner will continue to pay the premiums and enjoy the full benefit of the policy proceeds.

If you have an endowment that will be insufficient to pay off your mortgage and you feel that you were mis-sold the policy, you may be entitled to compensation. There are many companies who will investigate this for you.

Below are links relating to Selling Endowments:

8 out of 10 people in the UK are paying too much for their mortgages. To make sure you are not one of them, visit us at www.mortgages.co.uk

 

UK Investments - Financial, Property & Other Investments - 1998-2008

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