How Do I Sell an Endowment Policy?

EdInvestor

A good analysis NW.

The 1bn quid or so that was put into the life fund post DM has indeed probably wiped out most of the policy premium earlier offered by the TEP traders, who were aware this money was coming.

There may not much point in bothering to sell now since it's often so time consuming but I would still ask for a quote, as things can change.Also, as we see in this case, the trader's valuation does provide as good an indication of actual value as you can realistically expect in the murky world of with profits :rolleyes:.

molly1_2

we went to Integrety to sell ours, very disappointed with the wait 7/8months, having to chase them up all the time, never returned phone calls.we have just decided to cancel the contract with them and they won't let us. its getting nasty now, we have gone to see a solicitor and thinking of going to the Financial Ombudsmen-be careful- get them to give to an estimate of how long it will take

Supernova

molly1 wrote:

7/8months

<Shudder>

I'm being cautious about going into it despite some attractive offers. I need the money soon to have a hope of beating FPs projected shortfall.

The contracts all seem to be slanted in their favour. They can mess you about but you have no redress.

EdInvestor

molly1 wrote:

we went to Integrety to sell ours, very disappointed with the wait 7/8months, having to chase them up all the time, never returned phone calls.we have just decided to cancel the contract with them and they won't let us. its getting nasty now, we have gone to see a solicitor and thinking of going to the Financial Ombudsmen-be careful- get them to give to an estimate of how long it will take

Another bad report about Integrity.:mad:

I understand the FSA (the regulator) has them on a watch list.You may wish to make a report.

https://www.fsa.gov.uk

Supernova

Presumably the surrender value is going up and up whilst the sale offer is worth relatively less and less.

Are there any other companies that pull this trick?

thomasperfecto

I work for a Market Maker that purchase these policies.
The problems suffered with Integrity are not uncommon, infact there was an article in last sundays Express on the very subject.
However I would say to anyone wishing to sell at this moment in time to be prepaired for some wait. All the Market Makers are experiencing high volumes due to SL's demutualisation and so you should probably allow 8 to 10 for a sale to complete.

For the guy who was offered "only £600" well to me £600 is £600 and I wouldn't sniff at it!

Supernova

So, if you have to wait 3 months for the money, the surrender value might have caught up with the sale price by then and you'd lose the interest potential too?

On the other hand the buying company offer to pay the premiums from when you agree to a sale, don't they?

thomasperfecto

Supernova wrote:

So, if you have to wait 3 months for the money, the surrender value might have caught up with the sale price by then and you'd lose the interest potential too?

On the other hand the buying company offer to pay the premiums from when you agree to a sale, don't they?

An endowments surrender value will usualy only increase in line with the premium payments. Unless a bonus is declared. In most cases bonuses are declared either at year end or at the plans anniversary.

You are right about the premiums. Some companies pay the premiums from the next due date (or refund you as needs be) other companies expect you to pay the next premium.

The quotes you receive should state the last premium paid date and if you're premiums are quite high then this might be worthy of consideration.

Supernova

thomasperfecto wrote:

An endowments surrender value will usualy only increase in line with the premium payments.

Interesting. My surrender value is going up by £135 pm but the premiums are £101.90.

How should all this affect the amount offered by companies that buy the policies? Would I expect more to be offered as the surrender goes up?

alextegg

Hi,

I've received a surrender value for my endowment, so I'm currently evaluating whether I continue it or surrender it and write the payment off my offset mortgage. However, I also looked into trading on the endowment but it is a 50% with profits, 50% Managed fund. APMM are not interested as they are only after 100% with profits.

Anyone know whether I stand any chance of finding anyone else who will buy it, or whether continuing to pay it or surrendering it are my only two options?

I've paid in 10628 nearly 12 years. They are offering me 11351 surrender value which is just under 7% interest.

I'm favouring cashing it in and chucking the balance off the mortgage, but if anyone else has any better ideas I'd appreciate it!

TIA,

Alex