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Trading a PUP'd Endowment?
APJ
Posts: 68 Forumite
Stopped paying premiums into a Pru With Profits endowment 2 years ago. Now looking to surrender - value approx £16k. Is it worth approaching a trader to see about selling the policy or does the fact that premiums have stopped make it unsaleable?
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Comments
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not 100% on this but my understanding is that you may struggle because I think the companies that buy these policies continue making the premiums with a view to profiting and getting the full maturity bonuses etc..
Might be worng - just find a company and ask the question..I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
No-one will touch a paid up policy. You have already killed the thing that they want.
Shame you made it paid up. Pru endowments are desirable. Most are expected to go on to hit target and pay surplus. This is why they get some of the best offers out of all endowments.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
When you make a policy paid up, the guaranteed value (the amount they must pay you at maturity if you keep up the premiums) is reduced (in half IIRC).
Thus the policy is worth much less than it was.
It's not a good idea to make a policy paid up.Trying to keep it simple...
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It's not a good idea to make a policy paid up.
There are many occassions when it is far better to make it paid up then surrender. It is often too overlooked and many do not know it is an option.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the info, folks. Looks like its a surrender then.0
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