Endowment Selling Increases in Popularity

 

We can all remember the heady days of high investment returns, when stock markets were doing well and those lucky enough to have invested in endowment policies were enjoying big returns.

 

Anyone with a endowment policy would never of dreamt of selling it, especially with big endowment bonuses and large terminal bonuses added at maturity. Not only was the endowment policy paying off the mortgage debt, but quite substantial surpluses were being paid out and everyone was happy.

 

How the tide can turn !

 

Here we are today with endowment policy owners complaining in their thousands to the ombudsman about endowment misseling, and endowment companies issuing red letters to their policy holders warning of potential shortfalls.

 

For some, the quickest route is to surrender their endowment policy and cut their losses, but more and more are choosing to investigate the selling endowment option as an alternative, before taking the endowment surrender course.

 

Selling an endowment is simply offering the endowment policy to a third party, rather than offering it back to the issuing endowment company/original provider.

 

If the endowment policy is of the "with profits" type (which entails having regular bonuses added each year and a terminal bonus in the final year) as opposed to a unit linked endowment policy (where the endowment policy holders regular premiums buy units, which fluctuate in value, and have no terminal bonus at maturity) then it can attract an investor who will make an offer, if he/they feel it is worth while.

 

Selling endowments is becoming more common place, especially as the tabloid press and other media publicise the actual success stories of those that have taken this route, and especially now that the Financial Services Authority have made it compulsory for all endowment policy companies to tell their endowment policy holders of this option - something they omitted to do until a few years ago.

 

So if you are asking yourself "should I sell or surrender my endowment policy" then use the above link to have your endowment policy valued before making the final decision.

Remember at all times that an endowment policy is viewed as a long term investment, and the attached life assurance will be lost if disposed of.

Independent financial advice should be taken before making a decision

 

All the above, and other pages on this web site, are intended as "information only" and not mistaken as advice to take any course of action, other than to seek professional independent advice or/and more information