selling endowment policies
sell endowment policies to endowment policy traders


Questions About Selling Endowment Policies


Why are endowments sold ?


It was only a few years ago that endowment policies were the recommended choice of investment to build up a fund to repay the mortgage debt at the end of the mortgage term. Critics will argue that the endowment policy wasn't bought so much as sold to the customer because of the high commission the salesman or his company received. The endowment policy was regarded as a reliable way to pay off the mortgage, and further more return an excess of cash at maturity. This may have been true at the time but in hindsight is became clear that the growth of the funds in the endowment policy didn't perform as well as forecast, and shortfalls were predicted.i want to sell my endowment policy

Only the interest on the mortgage was paid each month, and an endowment policy was set up alongside with the aim of building up the necessary fund needed to clear it and a period of 25 years was the normal term it was set up for.

When deciding on how much to put aside for the endowment policy each month (the premium amount), someone had to take a calculated guess at the how well the fund would grow during the interim period (usually 25 yrs) and the guidelines were set down for this by the then Financial Services Authority (FSA)

Unfortunately the FSA allowed the issuing insurance companies the option of what growth rate to assume when setting the regular premiums needed to achieve the aim, and the companies tended, without exception, to chooses the higher growth rate (or at least use historical data of growth rates achieved) to back up their claims.

However, actual performance has not been as predicted leaving many endowment policy holders receiving "Red Letter" warnings telling them of a potential shortfall.


Given the shock of receiving such a warning letter (normally after the first 10 years of the endowment policies life) the knee jerk reaction has been to "stop throwing good money after bad" and cancel the payments whilst changing the mortgage to a repayment type, which guarantees to pay off the mortgage.


At this point the endowment policy holder inevitably contacts the insurance company to see what they will get if they "cash the endowment in early"  and become of the alternative option of selling the endowment instead to an endowment trader.


This website enables any with profits endowment policy holder the ability to enter the minimum of details to send to the buyers to get their estimate of the policies value and make an offer above and beyond the insurance companies offer if the policy seems suitable.



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

 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."
"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."


FAQ- Can all endowment policies be sold ?

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