|
Further
information about selling endowment policies
When selling endowment policies, the seller has to
be aware that they will lose the benefit of the life assurance
contained within the policy, and replacement life cover should be
considered. A link on the right hand menu will help you. Selling an
endowment is now quite common, and the whole process is technically
known as a trading in endowments.
An increase in selling endowment activity has taken
place since "endowment shortfall red letter" warnings have been issued
by the endowment life offices, and more policy holders are now
selling endowments policies through this web, and receiving
offers from private buyers or institutions that are over and above the
surrender values being offered by the originating life offices.
A traded endowment policy, or "TEP", is a
with-profits endowment policy that has been sold by the original
policyholder to another investor before the end of the agreed term of
the policy. These policies are legally assigned to the new owner who
continues to pay the premiums. They are also known as 'second hand
endowments'.
In many cases selling endowment policies on the traded endowment
market, can return more money than compared to that offered by the life
assurance company. The difference can be up to 35% more, but the age of
the policy and the life company that issued it play a big part in
determining it's second hand value.
Selling endowment policies must now be one of the
options pointed out to you, if you contact the original endowment
company with a view to surrendering the policy. This has not always
been the case, but has been made law by the Financial Services
Authority (see the 2 links above for more information on this)
The information on this selling endowment web site
is intended as "information only" and should not be taken as "advice".
If you are unsure about what to do, if anything, about your endowment
policy, you should consider taking advice from an independent financial
adviser who is regulated by the Financial Services Authority.
Good luck with selling your endowment.
For those selling endowments, this is the latest
list of endowment policies that are being bought: Axa Equity &
Law, Axa Sun Life, Britannia Life, Britannic Assurance, Century Life
(NEL Britannia), Clerical Medical, Colonial Mutual, Commercial Union,
Co-operative, Crusader Insurance, Eagle Star, Ecclesiastical Insurance
Group, Friends Provident, General Accident, Guardian Financial,
Imperial Life (now Lincoln), Irish Life, Legal & General, Life
Association of Scotland, Liverpool Victoria, London &
Manchester, London Life, MGM, National Farmers Union Mutual, National
Mutual Life, National Mutual Life of Australasia, National Provident
Institution, Norwich Union, Pearl Assurance, Phoenix Assurance,
Provident Life, Provident Mutual, Provincial Life, Prudential, Refuge
Assurance, Royal Life, Royal Liver, Royal London, Royal National
Pension Fund For Nurses, Scottish Amicable, Scottish Equitable,
Scottish Friendly, Scottish Life, Scottish Mutual, Scottish Provident,
Scottish Widows, Standard Life, Sun Alliance, Sun Life Of Canada, Swiss
Life, Teachers Provident, Tunbridge Wells (now Childrens Mutual), UK
Provident, United Friendly, Wesleyan Assurance, Windsor Life (Gresham)
- Being on the list doesn't guarantee an offer will be made, but you
have nothing to lose by finding out.
|
|
