selling endowments for more than the surrender value
endowment policy buyers
sell endowment policies to endowment policy traders


Selling endowment frequently asked questions


What is an endowment policy?

An endowment policy is a regular savings plan that includes life assurance, and as such makes it a qualifying policy for special tax treatment by HMRC.

This means that if the policy holder dies before the policy reaches maturity, the endowment policy life assurance company pays out the life assurance amount but if the policy holder survives the maturity value of the endowment is paid out free of tax deductions
Endowment policies were looked upon (and still are to some extent) as a way of paying off a mortgage (referred to as an endowment mortgage) or as a savings plan for a future planned use.

An endowment policy can be "unit linked" or "with profits" or "unitised with profits" - a cross breed of the two.
A unit linked endowment policy has it's monthly premiums invested in to units, the value of which can go up or down depending on investment performance and subsequently so can the value of the policy itself on any given day.
In a time of "bull markets" with rising share prices and strong economic growth, the value of the policy increases also, however, in bear markets when the markets decline so does the value of the endowment policy.

A traditional with-profits endowment policy, however, invests in a "with profits fund" and has a guarantee that the value of the policy cannot fall. There is no guarantee though that the endowment policy value will rise
It also means that spectacular rises and falls in policy value, which can occur in individual high risk unit linked funds, do not occur in with profits endowment policies. So given that quite a few endowment policies were used as repayment vehicles for a mortgage it is not unexpected that risk averse investors opted for one of theses types rather than their riskier unit linked.


The regularly timed premiums are invested in a with-profits life fund in an attempt to achieve a steady return for the policyholder. Normally a fund declares an annual reversionary bonus, which cannot be taken away after it has been added to the individual policyholders plan. In this way, the guarantee of the minimum policy maturity value builds up year by year, consisting of the basic sum assured and the total of annual bonuses added.

A terminal bonus is normally added when the policy matures, and this is one of the elements that makes a with profits endowment policy an attractive investment for an endowment buyer as they have been quite substantial in the past. Not so theses days though!


Unfortunately the past performance of the with profits funds has not been repeated which has left a very large number of with profits endowment policy holders looking at ways to alter the way they pay their mortgage. The majority have opted to switch to a capital and interest mortgage (repayment mortgage) and either keep the endowment policy as  a savings plan in the backgrounds, make it "paid up" and wait for maturity date and the money that will be forthcoming, or cash them in.


The other option which is now being more often explored as the word spreads is to sell their endowments on the traded endowment market.




how to sell endowment policies
endowment selling checklist Print the endowment selling checklist to ensure you have all the details needed
endowment surrender value required before selling endowments 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 to send to the endowment traders Fill in the endowment selling form and submit your endowment policy sales details
await an offer for selling endowments Await a response to see if your endowment policy has received an offer


endowment policies that sell to endowment policy traders

 What is an endowment policy

 Why are endowments sold

 How can I sell my endowment policy

 What is the endowment selling procedure

 Can I buy a second-hand policy

 What about selling my mortgage endowment


Will I get more cash by selling my endowment instead of surrender


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."
"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."


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