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Further information about
selling endowments
When selling endowments, the seller has to
be aware that they will lose the benefit of the life assurance
contained within the endowments, and replacement life cover should be
considered. A link on the right hand menu will help you. Selling endowments is now quite commonplace
in the uk, and the whole process is technically
known as a trading in endowments.
An increase in the
number of people selling endowments 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 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 endowments agreed term. 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 endowments 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 endowments and the
life company that issued them play a big part in determining the
endowments second hand value.
Selling endowments 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 endowments web site
is intended as "information only" and should not be taken as "advice".
If you are unsure about what to do about your endowments, you should consider taking advice from an independent financial
adviser who is regulated by the Financial Services Authority.
Good luck with selling your endowments.
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.
Selling endowments for more than
the surrender value
Selling endowments the
quick and easy way
Selling endowments for profit
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