Can I sell my endownment

Nads_2

I Have a unit linked policy which is managed, does this mean that my only option is to cash it in, I have been advised that I should try and sell it but I am not sure if I can. Can anyone help?
many thanks

Mr_helpful

No you cant sell it. Cashing in is your only option

dunstonh

Your plan has a daily value. So, asking to sell it is like asking someone how much will they pay you for a £10 note.

danh73

Hi there

First post. If you need any information about endowment policies let me know. I've worked in the industry for 10 years almost and know everything there pretty much is to know about endowments...

Any unit linked policies can't be sold on the open market because of their surrender value and the way the policy is calculated.

Unlike unit linked policies, with profit policies have an element of terminal bonus (TB's) that is payable in addition to the sum assured and reversionary bonuses at maturity. The TB's are declared by the life office yearly and the market can use these figures to project a maturity value. W/P policy surrender values tend to be about 1/2 to 2/3rds the eventual value at maturity. Thus there is an element of the policy that will eventually reward the holder at maturity.

Unit linked policies on the otherhand are valued daily. They are basically a share allocation and each month your premium purchases you more units in the fun it is invested in. If the stock market or your fund fails to perform and goes down, the surrender value will, but your premiums will buy you more units. If it goes up then the opposite will happen.

The problem is there is a risk element to this, because the market cannot actually judge what the fund will do and they value of the policy is the 'whole value' (total amount of units purchased) along with the fact there is no element of TB you cannot project a maturity value. Therefore it's not looked at.

Really, Unit-linked policies were miss-sold because the majority of people who own them are not risk takers. Unit linked policies are quite risky in comparrison to With profit.

absolutebounder

thats a leading question a £10 note could be worth all sorts of things on the forex market

dunstonh

Really, Unit-linked policies were miss-sold because the majority of people who own them are not risk takers. Unit linked policies are quite risky in comparrison to With profit.

That is not correct. Unit linked funds cover a wide range of risk areas and can be lower as well as higher risk.

If you work on a typical 1 to 10 risk scale, a with profits fund with MVR chargeable would be risk 6. (risk 5 if no MVR). Unit linked funds are available from risk 4 to risk 10.

thats a leading question a £10 note could be worth all sorts of things on the forex market

If you are going to offer me more for it, i will quickly run down to the cashpoint.

EdInvestor

danh73 wrote: »

Unlike unit linked policies, with profit policies have an element of terminal bonus (TB's) that is payable in addition to the sum assured and reversionary bonuses at maturity. The TB's are declared by the life office yearly and the market can use these figures to project a maturity value. W/P policy surrender values tend to be about 1/2 to 2/3rds the eventual value at maturity.

As anyone who knows anything about with-profit endowmewnts will immediately see, there is very considerable con-fsusion among many so called professionals about how they work.

Back to school danh, if you can be bothered, given that WP investments are obsolete these days.

:rolleyes: