Selling a paid-up endowment?

APJ

Is there a market for selling a paid-up with profit Prudential endowment? Premiums stopped about 2 years ago, current surrender value about £16,800. Dont suppose there is, but just checking beore I send the surrender paperwork off.

crossleydd42

This site should help -

http://www.apmm.org/

crossleydd42

You could try this website:

http://www.practicalprams.co.uk/

APJ

Cheers Crossleydd42! Not sure I need a pram right now though!

dunstonh

If its paid up, then it has no real value to anyone.

Shame really as Prudential endowments are generally very good and many are returning to surplus positions again. Had it not been made paid up, it would easily be desirable to others to buy.

Its a long shot, but you could ask the Pru if they would re-instate it. Its unlikely after two years but with a declaration of health and making up back payments, its a remote possibility that they may say yes.

EdInvestor

Very unlikely anyone would be interested as making a policy paid up causes a big reduction in the guaranteed value, which is what makes the policy valuable to the buyers.

Pity they don't usually tell you that (or explain what it means) before you make a policy paid up.

dunstonh

Pity they don't usually tell you that (or explain what it means) before you make a policy paid up.

Its not their job to. Most will have it in their documentation that you should seek advice before doing something like this. If you dont know the consequences yourself and you dont seek advice then it is your own fault if you lose out. No offence but you have to take responsibility for these things yourself sometimes.

If you pull some tubes out of the engine in your car, it will stop working correctly. Its not the job of the car manufacturer to tell you not to do this. You either have the skills to do it yourself or get someone else to do it. Why should it be any different for financial services?

EdInvestor

Its not their job to. Most will have it in their documentation that you should seek advice before doing something like this. No offence but you have to take responsibility for these things yourself sometimes.

Better to avoid insurance products with obscure t&cs that require "advice" and invest in something that is clear and easy to understand, IMHO.

Milarky

Without getting personal, what makes a paid up policy relatively unsaleable? As you know this should remove the need to pay any further premiums by the would-be buyer. Also paid up policies can participate in some further growth otherwise accruing [I think I was told in my case that they would freeze the final proportion of sum assured at the proportion of premiums paid but would still pay the attaching bonuses in full at maturity. They might also have said that the annual bonuses would keep being added at the same rate]. When I did the sums it looked as though the policy+premiums would grow at much the same rate as the paid-up policy.

[Could it be that would-be purchasers are told to steer clear of paid-up policies in preference to on-going because they believe otherwise rather than going by hard numbers?]

dunstonh

A paid up plan gets the life cover (and CI if applicable) removed and the guaranteed sum assured gets reduced to a value that reflects what has been paid to date. With premiums being paid, the interest is in that higher guaranteed sum assured with the potential for bonuses going on top. Once paid up, that potential is much reduced.

EdInvestor

See how even an experienced and numerate person like Milarkey can get led down the garden path