Selling Endowment Policies

griff1002

We have 8 years left on our endowment policy which is not linked to our current mortgage. It was initially set up to pay £21,500 on maturity in 2016 and has a current value of £6,750. It has payments made of £39 each month. In the current climate we are paying out more each year the our investment in rising. Is it worth holding on to or should we cash it in and put the money to use now ? If we sell how do we go about this without being ripped off ?

EdInvestor

Contact https://www.apmm.org to see if you can get a quote to sell the policies.Some cannot be sold for more than the surrender value.

dunstonh

In the current climate we are paying out more each year the our investment in rising.

If it is a conventional with profits plan then that probably isn't the case as you are forgetting the guaranteed sum assured and the terminal bonus. The annual bonus would be pretty rubbish in most cases but thats only one part of the return.

Gareth56

If your policy has a guranteed life assurance amount attached then bear in mind that if you sell your policy you loose this. However if you are loosing money on the policy then it seems pointless hanging onto it. I used AAP to sell mine and the whole process was effortless and very quick (1 month). However it may be wise to get advice from an independant financial adviser.

griff1002

we have life insurance seperately for both of us anyway for a decent sum so what this offers wont make much difference. we have checked the details on the policy and found that it has no profits and no bonus at the end. what it shows as worth is what we get.

we are cashing it in and putting the money to better use.

thanks for the advice. it has helped to make an informed decision. :T

turbobob

griff1002 wrote: »

we have checked the details on the policy and found that it has no profits and no bonus at the end. what it shows as worth is what we get.

So its a unit linked policy then is it?

Note that you can't sell unit linked policies on the TEP market so it would be surrender value only if that is the case.