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Selling Endowment Policy

lindabea
Posts: 1,507 Forumite


I'm thinking of selling a with-profit policy, has anyone used this service and did you get a higher quote than the surrender value? Can anyone please recommend a company for me to approach? There are so many companies and they all say they are the best. I know I can get some quotes, but I would appreciate your comments.
Before doing something... do nothing
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go to www.apmm.org (assc of policy market makers) complete the form and they will forward you details to interested parties who will then quote you a price.
they will only buy pure with profits policies and if interested, could quote above the surrender value. I have sold a policy at a 40% premium but some policies may only attract the surrender value.
you will need to carefully consider the pros and cons of selling and will also need to cover any shortfall in life cover, if needed."The Holy Writ of Gloucester Rugby Club demands: first, that the forwards shall win the ball; second, that the forwards shall keep the ball; and third, the backs shall buy the beer." - Doug Ibbotson0 -
I am also in the process of selling my endowment. It's performing badly so it has to go! However, each time I call to update the surrender value it seems to increase...so difficult to know how long to wait to sell. Also my endowment company are talking about the 'reattribution' of policies and apparently I may receive a bonus next year, anyone know if this would be worth waiting for? A company called Policy Plus have promised an offer over and above all of the others.0
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I am also in the process of selling my endowment. It's performing badly so it has to go! However, each time I call to update the surrender value it seems to increase...so difficult to know how long to wait to sell. Also my endowment company are talking about the 'reattribution' of policies and apparently I may receive a bonus next year, anyone know if this would be worth waiting for? A company called Policy Plus have promised an offer over and above all of the others.
are you sure the policy is a traditional with profits and not a unit linked policy? check with your endowment company that your policy is eligible for reattribution and also when the cut off date for receiving it is. the amount is not likely to be huge as the shareholders will probably get the biggest slice of the cake.
if you policy is traditional (you won't find a buyer for u/l) and if you still decide to sell, the companies buying the policies are split into two kinds - cash buyers and middlemen. the cash buyers will buy the policy immediately whereas the middlemen may take some time to find a buyer. confirm which your potential buyers are before signing the agreement."The Holy Writ of Gloucester Rugby Club demands: first, that the forwards shall win the ball; second, that the forwards shall keep the ball; and third, the backs shall buy the beer." - Doug Ibbotson0 -
I am also in the process of selling my endowment. It's performing badly so it has to go! However, each time I call to update the surrender value it seems to increase...so difficult to know how long to wait to sell. Also my endowment company are talking about the 'reattribution' of policies and apparently I may receive a bonus next year, anyone know if this would be worth waiting for? A company called Policy Plus have promised an offer over and above all of the others.
If this is an NU policy, then it is not performing badly.
Like many with profits plans, NU do not include their mortgage promise value and final bonus in the projections which can significantly understate the values being projected.
Most NU plans are actually not that far from hitting target or are on track when you factor in everything.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
NU do not include their mortgage promise value
The so called mortgage promise only applies to endowments which were falling short in 2000 - most weren't, the problems arose later.
The surrender vale will include the amount of final bonus accumulated so far so you can project from that.However, each time I call to update the surrender value it seems to increase.
This will accur because you are continuing to pay in premiums.The NU fund is expected to return 6% on a long term basis.
What interest rate are you paying on your mortgage?Also my endowment company are talking about the 'reattribution' of policies and apparently I may receive a bonus next year, anyone know if this would be worth waiting for?
It might be worth a few hundred quid, depends on size of policy, length of time you have had it.A company called Policy Plus have promised an offer over and above all of the others.
As mentioned check if they are a middleman or an actual buyer - avoid middlemen.Trying to keep it simple...0 -
The so called mortgage promise only applies to endowments which were falling short in 2000 - most weren't, the problems arose later.
Ive seen quite a lot of NU endowments and most have a promise value. Many with mortgage promise values around £2000-£5000. How many NU endowments have you reviewed?
Either way, knowing the facts before making a decision seems prudent. Throwing away a potential £5000 because you didnt ask a question isnt a good idea.The surrender vale will include the amount of final bonus accumulated so far so you can project from that.
It will also include the surrender penalty and not any mortgage promise value which you forfeit if you surrender.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Ive seen quite a lot of NU endowments and most have a promise value.
It would be natural that an advisor would see the bad endowments which were falling short right at the start, but not the better ones.Either way, knowing the facts before making a decision seems prudent.
Quite so.The OP should ask if there is any promise applicable.It will also include the surrender penalty
The OP should also ask about that.Not all companies charge surrender penalties these days and anyway such penalties are not an indication you should hold onto the policy.Trying to keep it simple...0 -
It would be natural that an advisor would see the bad endowments which were falling short right at the start, but not the better ones.
I dont see why it makes any difference. I have seen those above and below. I usually make a point of reviewing them regardless of whether I think they are good or bad. You know as well as me that certain names are almost guaranteed to be rubbish but some can be borderline or better keept running and NU fall into the borderline where you cannot assume anything as they have good and bad.such penalties are not an indication you should hold onto the policy.
Yes they are.
Lets say there is a 10% penalty this year. That means the alternative has to recover that 10% before it sees any gain. Plus, what if the penalty goes after the 10th or 15th anniversary or reduces annually. It may make sense to wait until the surrender penalty no longer applies or has dropped to a manageable level. Again, typical information you find out when doing a proper analysis.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Quicker to make up any penalty by selling the policy.Trying to keep it simple...0
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