Buying an Endowment Policy

Frugaldom

I've heard about a few companies who buy and sell endowment policies, which sounds to me as if you can actually buy someone else's policy for a set fee, keep up the payments and then reap the benefit of the profits when the term ends. Is this correct and, if so, is it as simple as it all sounds? I don't have a mortgage and don't want a mortgage but I would consider the above if it was deemed to be a sound investment.

I'm a little skeptical because I have never met anyone who has done this, so don't know how easy, legal or wise a practice it really is.

Any information or advice appreciated, thank you.

maninthestreet

Take a look at this:

http://www.moneyextra.com/guides/traded-endowment-policies-011460.html

Frugaldom

Thanks for that link. I had a quick scroll through it and saw a few points that were a turn off - such as tax. Think I'll stick with the ISAs and premium bonds for now

nollag2006

I have a couple of endowments (one with Std Life, and the other with Friends Provident) that have about 2 years left to run. How do I find out which TEP purchaser will give me the best price?

Frugaldom

The link in maninthestreet's post has a section for applying to find out what your policies are worth. It's quite an informative site. Also, have you applied to Std Life and Friends Provident for their paid up / cash-in values so you have a comparison and/or are you sure it isn't worth your while keeping them for the next 2 years until they mature?