Selling Endowment Policy?

CHIHUAHUA

Wondered if anyone could give me any advice about the possibility of selling an Endowment Policy on to a company rather than surrendering it. Have seen companies advertising the possibility of a higher return than the surrender value.
All ideas much appreciated

dunstonh

advice to whether you should keep, surrender make paid up or sell it?

camstop

I'm about a week ahead of you on doing this.

Fill in the application form on here > http://www.apmm.org/ and you'll get offers over the next week from the company's on there.


The advice i was given was to go with the firm offers to buy from you as opposed to the company's offering to sell on your behalf as your policy can end up in limbo for a long time.


HTH

CHIHUAHUA

dunstonh wrote: »

advice to whether you should keep, surrender make paid up or sell it?

the advice is for a friend who wants to sell her policy - it's not paid up and not performing well :mad: she wants to use the money to pay off other debts - has already changed the mortgage over to capital and repayment a couple of years ago and only kept the endowment going as she thought it would be a good savings policy - but now wants to cash it in and get rid of other debts plus doesn't think the endowment is worth carrying on - if she was in a position to save then the money would probably be better off in a high interest savings account with a guaranteed return.


thanks for your advice camstop - still waiting for the surrender value to come thru but will check out the site - have you had better offers than the surrender value for yours? - hope you don't mind me asking

thanks to you both for taking the time to reply

JoeK_3

CHIHUAHUA wrote: »

Wondered if anyone could give me any advice about the possibility of selling an Endowment Policy on to a company rather than surrendering it. Have seen companies advertising the possibility of a higher return than the surrender value.
All ideas much appreciated

You need to ensure that it is a with profits policy, as these are the only ones that can be sold.

Assuming that it can be sold, to ensure that you get the best deal, you should consult an independent financial adviser that will search for the best deals for you.

JoeK

dunstonh

She also needs to make sure she understands how they work. Too many good endowments have been sold/surrendered because people dont realise that the projections are not the true position of the endowment. There may be final bonuses, mortgage promise payments and special bonuses due which are not included in those projections. Then again, it could be a really poor example and worth getting rid of but she should verify that first.

Remember, if there is someone willing to buy it from her, then there must be something about it that is worth paying extra for.

CHIHUAHUA

dunstonh wrote: »

She also needs to make sure she understands how they work. Too many good endowments have been sold/surrendered because people dont realise that the projections are not the true position of the endowment. There may be final bonuses, mortgage promise payments and special bonuses due which are not included in those projections. Then again, it could be a really poor example and worth getting rid of but she should verify that first.

Remember, if there is someone willing to buy it from her, then there must be something about it that is worth paying extra for.

thanks for your replies - as far as i know the policy doesnt have a good projection and shes cut down the monthly payment from 200 to 40 p/m - will get her to show me the paperwork but really i don't think she's going to lose anything by cashing it in - its aprox 10yrs old and was 200 p/m for aprox 8 years and then 40p/m since changing the mortgage to C+R - surrender value paperwork will hopefully show predictions?

camstop

" thanks for your advice camstop - still waiting for the surrender value to come thru but will check out the site - have you had better offers than the surrender value for yours? - hope you don't mind me asking "


My surrender value was £14980.

I got 6 offers of the company's on there...


1/ Firm offer of £17150

2/ Firm offer of £16180

3/ Firm offer of £17077

4/ Offer to sell on which would give me £17725 when sold

5/ Offer to auction expected to give me (after fees) between £16776 - £17274

6/ A number to call who will only make an offer if they can beat the other firm offers


My policy is with prudential which is one of the better performing ones as far as i can see so i expect my offers are probably reflective of that.

HTH

dunstonh

My policy is with prudential which is one of the better performing ones as far as i can see so i expect my offers are probably reflective of that.

That does explain it. Pru have a 100% track record on hitting target and paying a surplus. Their average surplus in 2006 improved on the 2005 figures.

Plus, like many others, they dont include the terminal bonus in the projections and they have a special bonus likely in the next few years with the dispersal of orphan assets.

tin_cup_2

Be careful with offers from surrendalink and the TEP exchange, I recieved offers from both, the TEP exchange being the higher so I accepted it.
When the paperwork came through the buyer was surrendalink!
I didn't really care as I had accepted the highest offer...NOT!

After a couple of months of inactivity a letter arrived from surrendalink asking me to sign the papers again?

I thought this odd as I had done it once, but on careful inspection I noticed they were now offering me the lower price I originally ignored from them for the TEP exchange offer!

I called their office and they denied making me the higher offer (even though I have it in writing).

I also called TEP exchange who did not return my call, whilst looking up their number I noticed that the TEP exchange and surrendalink are next door to each other...small world eh?

Needless to say I withdrew.

tin cup

Mr_helpful

Doesnt the fact that you have a load of profit making firms after your endowment paying a lot more than the surrender value tell you something?