endowment policy selling

Endowment Policy Selling

Caution the best policy with endowment selling


ANYONE holding a with-profit endowment - a policy which guarantees to pay at least the value of your loan on maturity - cannot fail to have wondered whether they would be better off selling or surrendering their endowment policy selling to endowment traderspolicy because of the endless stream of bad news about endowments.

But you should never do this before considering alternatives such as leaving the endowment policy paid up - namely ceasing contributions - but otherwise maintaining ownership of the endowment policy. Other options include selling the policy on the traded endowment policy (TEP) market or surrendering the policy to the insurer. Another factor to consider is whether there will be a terminal bonus which could suddenly increase your endowment policy's value at maturity.

According to a with-profit endowments survey conducted by Money Management magazine earlier this year, of 28 policies examined there was only one (from Scottish Mutual) where investors would have been better off surrendering one year before maturity. In April 2004, by contrast, there were four companies showing a better surrender value at 24 years.

Despite this bad news surrounding endowments, the good news is that the survey also found that with-profits funds continue to significantly outperform balanced managed funds, UK index trackers, UK all-companies funds and building society accounts over the long term, while also offering the lowest volatility (although you should remember that past performance is not an indication of future returns). selling my endowment policy

But policies taken out within the last five to ten years have suffered notably from falling bonuses because with-profit companies are suspected of having "over-bonused" policies in the early 1990s and not reserved enough for the tough investment environment in recent years.

On the terminal bonus front, there is bad news as these bonuses are fast disappearing on policies of shorter terms. For instance, for 20-year policies, only three providers do not pay terminal bonuses, but this rises to seven for 15-year policies and 12 for ten-year policies. These "loyalty" bonuses are dependent on the investment conditions prevailing at the time of maturity, as well as upon the investment performance of the life company, and the final value is therefore not guaranteed. If you do decide to try to sell your endowment on the open market, be aware that not all policies will be accepted by market makers. Policies for re-sale should have at least five years to run to maturity and have a minimum surrender value of £2000 (a few require a minimum of £8000).

The price you are offered by the market maker will depend on the strength of the provider (the most popular policies are generally those from Prudential, Norwich Union, General Accident and Standard Life). The market maker will also deduct his costs before making you an offer.

According to the Association of Policy Market Makers as many as 40 per cent of all endowments do not last the full term - being sold or surrendered along the way.

A further 30 per cent are cancelled in the first few years of their intended lifespan. The best approach if you are unsure how to progress is to seek independent financial advice and carefully review all your options.

Endowment Policy Selling - List of most popular bought

Britannia Life britannia life endowment

Britannic Assurance  britannic assurance endowment

Canada Life canada life endowment

Century Life century life endowment

Clerical Medical clerical medical endowment

Co-Operative (CIS) Co-Operative endowment

Colonial Mutual colonial mutual endowment

Commercial Union commercial union endowment

Crusader Insurance crusader insurance endowment

Eagle Star eagle star endowment

Sell Ecclesiastical Insurance endowments

Equity and Law - find buyers for Equity and Law Endowments

Friends Provident friends provident endowment

General Accident general accident endowment

Guardian guardian endowment

Sell My Imperial Life endowments

Irish Life Irish life endowment

Legal and General  legal and general endowment

Life Association of Scotland

Liverpool Victoria  liverpool victoria endowment

London and Manchester Selling London and Manchester Endowment Policy

MGM endowment policies sell to buyers of endowments

National Farmers Union Mutual Find a buyer for your National Farmers Union Mutual Endowment

National Mutual Life

National Mutual Life of Australasia

National Provident Institution

Norwich Union norwich union endowment

Provident Life

Provident Mutual

Provincial Life

Prudential prudential endowment

Refuge Assurance endowments - sell refuge assurance endowments to endowment buyers

Royal Life Selling Royal Life Endowment Policy

Royal Liver Royal Liver endowment

Royal London Selling Royal London Endowment Policy

Scottish Amicable Selling Scottish Amicable Endowment Policy

Sell My Scottish Equitable endowment policies

Scottish Friendly Selling Scottish Friendly Endowment Policy

Scottish Life Selling Scottish Life Endowment Policy

Scottish Mutual

Scottish Provident Selling Scottish Provident Endowment Policy

Scottish Widows Selling Scottish Widows Endowment Policy

Standard Life standard life endowment

Sun Life Sell Sun Life Endowment Policy

Sun Life of Canada  sun life of canada endowment

Swiss Life  swiss life endowment

Teachers Provident

Tunbridge Wells Endowment Sell your Tunbridge Wells Endowment for cash

UK Provident

Sell United Friendly Endowments

Wesleyan Assurance Endowment - I want to sell my Wesleyan Assurance Endowment

Windsor Life (Gresham) offers to buy your Windsor Life Endowment

Yorkshire General Life (now General Accident) sell your General Accident Endowment

Sell Mortgage Endowment Policy sell mortgage endowment

Miss sold a mortgage endowment policy Miss sold a mortgage endowment policy

Sell an endowment policy sell my endowment

Endowment mortgage miss selling endowment mortgage miss selling