CASHING ENDOWMENT POLICIES EARLY
If you are considering cashing in or surrendering your endowment policy, you
should seriously look at the option of selling the endowment on the
second hand traded endowment policy market (TEP) . By clicking the
the left, or the banner below, you can send your endowment policy
details for the buyers to evaluate. Historically the endowment life
assurance companies only gave you a surrender value of their own
calculation if you contacted them about cashing in the endowment
policy early. However the UK Government financial watchdog has made it
compulsory, through regulation, to force endowment companies to make
you aware of the alternative to cashing in early and selling the
endowment policy to market makers, also known as endowment traders.
The reasoning behind this being that in a lot of cases more money
can be returned to the policyholder by selling to a trader rather
than simply cashing in the endowment policies early back to the life office.
Selling endowments has become an accepted and profitable alternative
to cashing the endowment policy early, and the number of policy holders
actively engaged in the selling endowment process is on the
increase. Depending on how long the endowment policy has been
running, a significant increase over and above its cash in value
can be achieved by selling to the endowment traders.
Once you have sent your endowment policy details it will then be assessed, and if tradable an
offer will be notified back to you .Selling endowments is not complicated, and
you could get more money
for selling your endowments than surrendering early or cashing in.
It is important that the latest up to date endowment surrender value
is obtained from your life assurance office, before filling in the
endowment selling form.
Endowment Policies That Sell
In order to stand the best possible chance of selling your
endowment please take note of the points below:
- Your endowment policy should be at least 5 years old.
- The endowment must be 100% "With Profits" - unitised
and unit linked policies are not saleable.
- The latest up-to-date surrender value must be at least £3000
- All the required information on the endowment selling form
has been supplied by you.
"If you have a with-profits endowment policy, you may be able to
sell it on the second-hand endowment market.
If you’ve been paying in for at least seven years, you’ll probably
earn more if you sell a with-profits policy rather than cashing it
Extracts From Government Publications
CP 106 "The Personal Investment Authority (PIA) issue
guidance (Regulatory Update 85) in March 2001, asking provider firms
to take steps to ensure that policyholders who were considering the
surrender of a life policy were informed that they might be able to
trade their policy instead."
COB 6.5.50R(5) "requires a firm to ensure that the
policyholder is made aware of the existence of the secondary market
and how he might access it."
Frequently asked question
about selling endowment policies to endowment traders
cashing in an
endowment policy early
Because many life assurance companies and organisations have
merged with others and changed their brand names,
here is a list that represents a cross section of the most common
endowment policies today by name
AXA Equity and Law,
Canada Life Ltd,
Clerical Medical and General,
Colonial Mutual Life Assurance Society,
Commercial Union Life
Assurance Company Limited,
Cooperative Insurance Services,
Ecclesiastical Insurance Office Plc,
FP Life Assurance Ltd,
General Accident Compound,
Legal and General Assurance Society Limited,
Liverpool Victoria Friendly Society,
London and Manchester
Assurance Company Limited,
Manufacturers Life Assurance,
General Mutual Life Assurance Society,
Medical Sickness Annuity and
Life Assurance Society Limited,
National Mutual Life Assurance Society, National and
Norwich Union Life Insurance Society,
Prudential Assurance Company,
Refuge Assurance Plc,
Reliance Mutual Insurance Society Limited,
Royal Life Assurance Ltd,
Royal London Mutual Insurance,
Royal Liver Friendly Society,
National Pension Fund for Nurses,
Scottish Amicable Life
Scottish Equitable Life Assurance Society,
Scottish Life (Royal London),
Scottish Mutual Assurance Society,
Royal Sun Alliance Phoenix,
The Children's Mutual,
Tunbridge Wells Equitable Friendly Society,
Windsor Life. Cashing in your endowment early is one
option, selling the endowment maybe a better one!