Selling an Endowment

linsmiller

Hi, can any one offer any advice on selling your endowment - i have heard that some companies will buy it off you - is this correct ?

opinions4u

If it's a 'with profits' endowment there may be a market for it, although this isn't as active as it used to be.

There is no market for unit-linked endowments.

What type of policy do you have and why do you want to sell it?

lisa76

Sorry to but in but I am in a similar situation. My husband has got a with profits endowment, it's run for just over 9 years at £56 a month. He's recently started his own business and was looking at cashing in the endowment for a bit of ready cash.

4 months ago he was told he would recieve £5400 cash in value, yesterday he was told it would be £5000.

My question is, is it worth waiting a month or so to see if it goes up again, or is it likely to go down because of the financial situation????

P.S My mortgage finishes way before his, so we'll be able to re-pay the capital that the endowment is covering.

dunstonh

My question is, is it worth waiting a month or so to see if it goes up again, or is it likely to go down because of the financial situation????

It depends on the provider. If its a zombie with profits fund the terminal bonus lag is likely to be significant. i.e. it may take years to see the figures increase. If its someone like the Pru or Norwich Union then you would expect a quicker increase. I have noticed that NU and Pearl have recently increased their terminal bonuses again.

lisa76

The policy is with Legal and General, and I'm afraid I don't understand what you mean by zombie with profit funds???

EdInvestor

Zombie = living dead = going nowhere except down.

L&G is not in the zombie category.

Try here for a sale:

https://www.apmm.org

Dick_here

EdInvestor wrote: »

Zombie = living dead = going nowhere except down.

I think the question was asked so that a list of which ones are would be provided, not a dictionary type explanation of the word :rolleyes:

lisa76

No I wasn't asking for a list of zombie funds, I just want to know a little more about the terminology used on these forums.

Thanks though all of you.

nieve

I would like to know if Winterthur conventional with profits is a zombie fund and sure others would like to know if they have got one too.

EdInvestor

nieve wrote: »

I would like to know if Winterthur conventional with profits is a zombie fund and sure others would like to know if they have got one too.

Step one is to ring up and ask them what the fund is invested in.If the vast majority is in bonds ansd cash (80%+) then it's a zombie fund.