Traded Endowment Policies

maisie_2

Does anyone have any advice about selling TEPs please? I've found many sites offering exaggerated figures but most appear to be middlemen pulling in gullible punters without firm offers or buyers. ( I suppose, by definition, holders of EP are pretty gullible anyway!)

dunstonh

Probably easier to see if it is likely anyone would be interested. Who is the endowment with and is it unit linked or with profits?

A number of these companies give higher figures across the board, as you say. However, when you get deeper into the transaction, they then refuse to accept any of the bad endowment providers/policies and only want the good endowments. If the endowment is desirable for someone else, you have to consider if you are giving up a good one. Especially when you cannot rely on the projections as being a reliable source of information.

maisie_2

Thanks Dunstonh. The policy is with Norwich and is with profits. Started in 1992 for 25 years with current surrender value of about 42K.

dunstonh

NU have one of the better potential growth funds and there have been some improvements on policies in the last 24 months. I would like to see what their 6% projection figure is like as that is around their potential for a 25 year policy.

Its certainly tradeable with most companies. However, it may be one worth keeping. It really comes down to knowing a little bit more about the policy.

maisie_2

The 6% projection is about £120K ; the monthly premium is £205 if that helps. The best TEP offer I have is for 58K but this is nearly 10K more than the next offer. (Sorry - this seems like I'm asking for free advice but your opinion is greatly appreciated!)

dunstonh

What is the full sum assured? ie. the amount the endowment was aiming to pay out?

maisie_2

It's slightly complicated (for me) as the policy was set up on 2 lives.The policy states 'On survival of either Insured until 2017(Benefit Date) 60K with bonus. On death of survivor of Insured before the Benefit Date 166K or if greater 60K with bonus'

maisie_2

Anticipating the next question - total bonuses at present 16K

dunstonh

Ok, its fair to say that at 6%, you would be looking at a whacking great shortfall!

NU do have the potential to get higher but I wouldnt want to rely upon that. Certainly investigating the sale options would seem like a very good idea in this case and you have nothing to lose in doing so.

EdInvestor

Hi Maisie

Post the following info for a view

Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date

Any maturity projections you have

Which fund it's in (eg the old Gen Accident one, the old NU one....)

maisie_2

Thanks for all the advice. I eventually ended up selling to the best offer which was TEP Factory/Integrity which was by far the best altho it has taken until now to come up with the cash ie 3 months.