Advice on selling endowment

stevepsych

Hi, any advice appreciated.

My endowment policy is coming up for 10 years out of the 25 years and is projected to fail. I asked for the surrender value and it is less than the accumulated monthly premiums I have paid in. Can this be correct?

Also, I enquired with a company about selling it and they said because it is not 100% with profits then it could not be sold. My paperwork states it is a unit linked endowment.

Should I surrender it back to the company and stop throwing monthly premiums into it??? Confused??

Steve

McKneff

unfortunatly, it is correct. By the time they have taken their cut,
covered your life insurance for the past 10 years you get whats left.

You dont have to sell your life insurance policy back to them, there are companies in the market place who buy them and you normally get a better price. I'm sure somebody will be along soon to give you a few names.
I just wanted to bump your enquiry along a bit.

regards
annie

I dont know anything about the unil linked endowment thing so again im sure someone more knowledgeable than me will help

Forever_Red

I think this is how it works........If the endowment is unit linked then your monthly premiums buy units at whatever price the units are on that day. Anyone wishing to buy these units can do so and therefore no need to buy someones endowment off them.

dunstonh

My endowment policy is coming up for 10 years out of the 25 years and is projected to fail. I asked for the surrender value and it is less than the accumulated monthly premiums I have paid in. Can this be correct?

The surrender value includes a penalty for early surrender usually. This doesn't tend to go down or get removed until later in the plan's life.

The actual value tends to break even around years 7-11 (on a 25 year plan).

Also, I enquired with a company about selling it and they said because it is not 100% with profits then it could not be sold. My paperwork states it is a unit linked endowment.

unit linked endowments have a daily value so there is no reason for anyone to pay more for the units as if they want them they can go direct and buy them for the retail price.

Unit linked endowments though tend to better for endowments nowadays although they will react more immediately to market conditions so you have probably experienced a 10-20% drop in the value in recent times. It hits your immediate value but is a good thing for those that are not close to maturity

EdInvestor

If you don't need the life cover you'd be best to dump it and reinvest the proceeds into some decent funds in an ISA , where you will avoid paying tax on your gains (up to 20% in the endowment).

Use a discount broker which rebates charges such as https://www.h-l.co.uk.

dunstonh

EdInvestor wrote: »

If you don't need the life cover you'd be best to dump it and reinvest the proceeds into some decent funds in an ISA , where you will avoid paying tax on your gains (up to 20% in the endowment).

Use a discount broker which rebates charges such as www.h-l.co.uk.

No facts have been posted about the policy or the OP. How can you make such a recommendation?

stevepsych

Hi,thanks for the advice so far on this.Perhaps I should wait a bit longer and maybe ask for a surrender value next year? I know that my money is in a Manged Fund at Moderate Risk level with overseas units, if that offers any more advice. I do believe that I can freely change the funds it is invested in but L&G said I would have to tell them what funds to put it in and I haven't got a clue about this!

29lithy

hi i asked for a quote on an existing life endowment policy from the wesleyan and recieved it today.when i rang the company to accept the quote thet gave me an UPTO DATE valuation which was 50% less than the quote given 4 days earlier

EdInvestor

stevepsych wrote: »

I do believe that I can freely change the funds it is invested in but L&G said I would have to tell them what funds to put it in and I haven't got a clue about this!

People who don't have a clue about funds or investments really shouldn't have been sold endowments, but rather repayment mortgages.