Selling a endowmwnt policy

hansi

Has anyone had any recent experience of selling an endowment policy. I have a 25 year policy with 5 years to run with a surrender value of about 17k. I have sufficient capital to pay the mortgage off and I have made enquiries about TEP's. Just wondered if they are selling for reasonable money these days?

dunstonh

Are you sure you want to sell it? 20 years into a 25 year policy and there is a good chance that the real value is higher than being shown on basic valuations.

If it's a good provider and its with profits it will probably be in demand. However, you have to think why they are buying it. They are looking to make a profit over that 5 years remaining which you would make if you kept it. You may get more than the surrender value but you will not get its true value.

At this time, I am finding the majority of 25 year endowments are still paying out surpluses. I even found a Pearl policy the other day that was above target on the illustration (although it had an amber letter stupidly). So even a duff provider could be ok on some circumstances.

hansi

It's with Prudential and it is a with-profits policy. So, maybe it's better to hang on? After all, my mortgage payments are only £103 per month and I have just started a 2 year tracker at 4.75%. I think I'll leave things as they are although I will get a quote just for interest's sake!

EdInvestor

Hansi

Let us know the result of the quote.The Pru WP fund has survived the market crash better than most other life offices, and it might be worth your while to find out how much (unguaranteed) terminal bonus is left in the policy.

If it's a lot, then you might want to consider grabbing it while it's still there, if you're a "bird in the hand" type of person . Even at the Pru payouts are still falling, sad to say.

dunstonh

Even at the Pru payouts are still falling, sad to say

Apart from the plans which they increased them on this year.