Cashing In Endowments Policies Early Endowment Selling


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 link I want to sell my endowment policyon 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.

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.


 

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 youve been paying in for at least seven years, youll probably earn more if you sell a with-profits policy rather than cashing it in."

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




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