Borrow or cash-in life insurance?

williameasson

I have a very old life insurance which I took out whilst a student over 40 years ago. It is whole life and for a small sum (in today's terms) £3500. I have contacted the insurance company about taking the surrender value, but this is only about £1200. The cash would be useful in the short-term. Can I borrow from it and what rates should I expect? (The policy says loans can normally be issued at up to 90% of the transfer value.) Lastly, can I sell the insurance to someone other than Friends Life?

jonesMUFCforever

Is it an endowment policy?
If so you can sell it on if it is clear of any current charges but because of the small amount of cover you may find most companies may not want to touch it.