|
Endowment Calculator |
|
Endowment Calculators To see if your endowment policy is attractive to a second hand policy buyer, It is only possible to ascertain what the value of your with profit endowment policy is by contacting the life office that it belongs to, or by offering it for sale as an ongoing investment to a buyer of traded endowment policies and seeing if it is attractive enough to be bought off you. Your own life office will be able to tell you what it is worth if it is cashed in, but more money could be returned to you if it was traded instead. A unit linked policy is worth what the price of the units are on the day, multiplied by the number of units held in the fund. However, a unit linked policy is not a type of endowment policy that is bought by the endowment traders. On the other hand, a with profits endowment policy is valued by the life office as a surrender value, and can often have what is called a "Market Value Adjustment Factor" applied to the figure before any money is paid out. It's a penalty for quitting early, and is designed to protect the policy holders that don't surrender early, but stay the course to maturity instead. Its the fact that with a "with profits" endowment policy annual (reversionary) bonus's are attached each year (though not always, especially if the fund has performed badly that particular year!) and once added are not taken away again. In addition, at the end of its life a terminal bonus is also usually added and this makes it more attractive than a volatile unit linked policy So to find out if your "with profits" policy will attract a policy buyer fill in the assessment form, you are not obligated to sell, but at least you will be more informed. It will cost you nothing to find out. Good luck !
|
|