How Do I Sell an Endowment Policy?

alextegg

Hi,

Yes it is 50% with profits 50% Managed

Projections I was given are:

target amount - 55000
projected final amount if 4% growth - 32800
projected final amount if 6% growth - 40800
projected final amount if 8% growth - 50800

Is that what you mean?

EdInvestor

Yes.

So then, if you surrendered this endowment and used the lump sum to reduce your mortgage loan @6% and also upped the monthly mortgage payment by the endowment premium amount, then at maturity your (guaranteed) return would be 42,922.

That compares with their final (unguaranteed) projected amount if 6% growth of 40,800, which does however include free life cover.

IMHO worth getting a quote from a a market maker on this one, see what they offer.If it's a lot more than the surrender value, might be worth holding on.The traders are all here:

https://www.apmm.org

alextegg

Tried them, they weren't interested as its only 50% with profits.

Can you suggest anyone else who might be interested in it, or if apmm are not does that mean no one will be?

EdInvestor

No, you'll have to surrender it.

alextegg

yes, that's what I thought thanks anyway...

dunstonh

8% is within the potential of this endomwent and could still hit target. It doesnt need much more than 8% to do that. If the endowment mortgage is still cheaper than the repayment mortgage, the cost savings may be worthwhile.

Scot Am have a very good record with 96% of their endowments hitting target this year. Those hitting target have an average surplus of £2600 and those falling short have an average shortfall of £700. In 2005, 95% hit target so they are showing an improvement.