cashing in an endowment policy early
cashing in an endowment policy early to an endowment buyer
     
 
 
sell endowment policies to endowment policy traders

 

Cashing in an endowment policy early

 

What happens if i want to cash in my endowment policy early ?

 

The process of cashing in an endowment policy early is not overly complicated but the policy owner needs to be aware of the consequences.

 

The first consideration is that the life assurance that is built into the endowment policy is now owned by the new owner, so if the original policy holder dies the life insurance payout goes to the new owner and not the person named as the life assured on the policy document. If the original policy holder doesn't need the life assurance anymore, for instance because a new policy has been set up, then it is no big deal.

cashing in an endowment policy early

Cashing in an endowment policy early does mean that no further premiums are payable by the policy holder (or anyone for that matter), however, if the endowment policy has been sold instead to a trader or any other individual that considers it a good investment, then the new owner continues with the regular premiums until maturity date.

 

The original policy holder will receive a cash sum for cashing in an endowment policy early from the life office but a significant increase on this cash can be had by selling the endowment policy instead to one of the many endowment policy buyers that exist. The policy has to be a "with profits" policy in order to attract a buyer. A unit linked policy is not a saleable item.

 

If the original policy holder is considering cashing in a unit linked endowment policy early then the alternative of selling to a trader is not an option.

 

The cash sum offered by the original life office in the case of cashing in a with profits endowment policy early is an actuarial calculation that takes into account many factors and the final payout can be affected by what is called a Market Value Adjustment Factor ( a reduction in the sum offered in order to lessen the drain of funds remaining in the life fund allocated to those endowment policy holders that do not cash in early.

 

If is a unit linked endowment policy that is being cashed in early the sum received will be an amount calculated by multiplying the number of units allocated to the policy on the cashing in date by the unit price on the day. This can obviously vary, depending on how the financial markets are behaving on that day. So cashing in an endowment policy early of the unit linked type of endowment can give more or less than expected depending on the markets volatility.

 

 

Endowment selling instead of cashing in an endowment policy early

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.

 

 

 

So if you are a "with profits" endowment policy holder and thinking about cashing in an endowment policy early (known as surrendering, in life assurance circles) you might also want to get a quote for selling it instead to a trader by using the links above.

 

 

how to cash in an endowment policy early
endowment selling checklist for cashing in an endowment policy early Print the endowment selling checklist to ensure you have all the details needed
endowment surrender value required before cashing in an endowment policy early Contact your endowment policy life office to get the up-to-date surrender value. Very important - no more than 5 days old
selling endowments form for cashing in an endowment policy early Fill in the endowment selling form and submit your endowment policy sales details
await an offer for selling endowments or cashing in an endowment policy early Await a response to see if your endowment policy has received an offer

 

cashing in an endowment policy early to endowment policy traders

 Only "With Profits"

 endowments are bought and

 sold. Unit linked and unitised

 endowment policies are not

 offered on by the endowment

 policy traders

 

advice on selling traded endowment policies   selling with profits endowments

 

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."

moneyadviceservice.org.uk
"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 in."

 

A website to get an offer from endowment traders if you are considering "cashing in an endowment policy early"

cashing in an endowment policy early | cashing in endowments early | cashing in my endowment