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Selling
endowments, frequently asked 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 endowments than surrendering (providing the policy is
"suitable")
Below some of the more frequently asked questions:
What causes a person to consider selling endowments ? - 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. Selling endowments for more
than the surrender value
Selling endowments the quick
and easy way
Selling endowments for profit
YOUR HOME MAY BE REPOSSESSED IF YOU DO
NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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