cashing in endowment policy

caspian_2

I wish to cash in my endowment policy which began in 1987 and finishes in 2012.
Is it best to cash it in through the company it is with or sell it to a finance company?

KD

I have been looking into this myself and there are a couple of things to think about. It's a real judgement call whether to keep or cash...so take your time. You need to really 'delve' into your policy to make an informed choice.

I used the company surrender values I received as the starting base and then trawled the internet for companies buying endowment policies, in all cases they came up with better offers. So worth looking into.

The taxman also has some rules around endowment policies when they are capitalised. There is a ten year rule which (struggling to remember this off the top of my head....I'll dig it out asap) or go to their site or phone them - I did and talked through my scenario- they were helpful. Also, don't be worried about talking to the company themselves - they can't give advice but often their quite cluded up on the ins and outs of your policy and the ramifications if you surrender.

There are a lot of MSE'ers out there who I know will be able to help - hope this just gives you a starter for ten and encourages you to take your time, this whole area is a minefield.

EdInvestor

Hi caspian

These days many policies are unsaleable, but to see if someone will buy yours, Google for "TEPs traders" to find the companies. If someone will offer you something extra for it, that might of course be an indicator to hold onto it.;)

If you're with Standard Life, don't forget the demutualisation windfall for members next year.

eezidozit

I surrendered my endowment last week. It was started in 1990 over 22 years.

I was very pleased with the surrender value and none of the companies I contacted with a view to selling it could not match the amount I received.