Selling Endowment Questions

click here if you are selling an endowment policy or want a price for selling endowments

Selling endowments is more widespread now that the Financial Services Authority (a government regulatory body) has ruled that the endowment life assurance offices, that deal with the surrendering of endowments, must point out the additional option of selling the endowment instead to an endowment policy trader (otherwise known as a "market maker")

The government, it seems, felt that the issuing endowment policy companies were omitting to point this out, when it many cases it is in the endowment policy holders interest to sell the endowment rather than surrender it back, simply because it is possible to get more money by selling the endowment than surrendering (providing the policy is "suitable")

Below some of the more frequently asked questions:

What causes a person to sell their endowment policy ? - There are many reasons;

• They have been notified that their mortgage endowment policy may not reach the targeted amount at maturity, leaving an endowment shortfall, and for this reason are looking at alternative methods of financing their endowment based mortgage i.e. the traditional repayment method.
• The endowment was originally in joint names, but their partner (who is named on the endowment) is no longer on the scene, and between them they have agreed a division of assets which includes the proceeds of the endowment policy to date.
• They are looking at ways of refinancing their endowment mortgage given that their circumstances have changed
• There is a house move taking place, and the endowment is no longer considered suitable for their new circumstances
• The endowment has already reached a level that is sufficient to repay the mortgage debt, and a mortgage free life suddenly looks appealing to them.
• They are paying interest on debts, and selling their endowment policy is one way of getting their hands on quick cash.
• The endowment policy is no longer affordable
• They no longer need the endowment policy, as the mortgage has been repaid by other means i.e. inheritance, house sale.
• The endowment policy was taken out in the UK and they are moving abroad.
• The endowment policy is a ready source of finance to enable a purchase i.e. car, holiday, wedding
  

click here if you are selling an endowment policy or want a price for selling endowments

Is my endowment policy a saleable endowment policy ? - it depends on the main points below;

• The first thing to check on is whether the endowment policy (or whole of life endowment policy) is of the with profits type of endowment. This can be ascertained by looking at the last endowment policy statement you have received. You need to be looking for words like "with profits, bonuses, regular bonus, reversionary bonus, total bonus's, terminal bonus, with profits funds." If in doubt, phone the endowment policy company who's name appears on the statement and enquire. If all else fails, take the policy to a financial adviser or mortgage broker at one of your local estate agents, and ask him to check for you - he/she will know whose chain to yank to get an answerer for you! If you have a "unit linked" endowment policy you will probably be wasting your time trying to sell it - a unit linked endowment is currently (and in the foreseeable future) not saleable.

• The endowment policy needs to be of an age where sufficient premiums have been paid by the endowment policy holder (or other person). There is no laid down figure for this aspect, each endowment policy is individually assessed for value, but an endowment policy that is less than 5 years old is an unlikely prospect - the older the better.

• The endowment policy surrender value needs to be high enough - again individually assessed by the trader buying it. An endowment policy surrender value in excess of £1,500 seems to be the accepted base line.

click here if you are selling an endowment policy or want a price for selling endowments

Where can I sell my endowment policy ? - Here, is the short answer !

• Click the red link above, fill in the endowment selling form and wait for about 48 hours.

• All the paperwork will be prepared for you.

click here if you are selling an endowment policy or want a price for selling endowments

The endowment policy is a mortgage endowment, and was set up to repay my mortgage. Will this cause a problem, and how can I deal with it ? - A few points here;

• The endowment policy is the means of repaying the mortgage debt, so the mortgage lender will obviously have an interest in what you intend to do to account for the sudden change.

• An obvious, and common solution, is to alter the mortgage from an endowment mortgage to a repayment mortgage - simplicity itself, and a guaranteed way of repaying the mortgage providing you keep up the payments.

• The endowment policy has got life assurance built in to it, so when it changes hands the new owner will receive the life assurance payout if you die (not you!)

• For this reason you should seriously consider setting up new life assurance to cover the financial debt that is still outstanding.

• With the proceeds of selling the endowment policy you may want to consider reducing the overall mortgage amount. This will reduce the time to pay the mortgage off, lessen the interest payable, reduce the life assurance needed (because you now don't owe so much) and give you more money spare each month.

• If the money received from selling your endowments was used to reduce the mortgage debt, the mortgage lender would look upon a mortgage reduction favourably.

click here if you are selling an endowment policy or want a price for selling endowments

Who pays my endowment policy premiums when the endowment policy is sold ? - Easy - the new owner.

• Once the endowment policy is legally owned by the new investor, they continue to pay the premiums, and enjoy the proceeds of the maturing endowment, or the life assurance if you die prematurely.

• You no longer have any obligation to pay the endowment policy premiums.

click here if you are selling an endowment policy or want a price for selling endowments

When I sell my endowment policy, how can I go about getting my mortgage reviewed, pay off lumps sums, get replacement life assurance and possible take advantage of the latest interest rates, deals, and flexible options ?

All these points cab be addressed by clicking here and visiting Mortgage Arrangers.

At Mortgage Arrangers you can get a free mortgage or remortgage service, life assurance quotes, unemployment insurance and much more.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.