endowment policy surrender or buying endowments for investments and funding or selling endowment policies

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Endowment Surrender Plus is
an Appointed Representative of Becque Wayman Investments Limited which is an Independent Financial Advisor authorised and regulated by the
Financial Services Authority

Endowment Surrender Plus
PO Box 276
Macclesfield
SK11 0FP
Tel: 01625 433222
Fax: 01625 433111

 

Why do people surrender or sell with-profit policies?

The reasons are varied but are usually attributed to a change in circumstances such as redundancy, divorce or a change in mortgage arrangements.

In normal circumstances, it is best to continue with a with-profit endowment to maturity, but for various reasons this often does not happen.

It is important for anybody thinking about encashing a policy to consider all options. These are:

  • Surrendering the policy direct to the issuing life office.

  • Borrowing against the policy, either from the issuing life office or from a bank using the policy as security.

  • Making the policy 'paid up' which means no further premiums are payable on the policy, but reduced benefits will be received on death or maturity.

  • Auctioning the policy

  • Selling the policy on the second-hand market.

Policyholders should also remember that if they surrender or sell their policy they will lose the benefit of the life assurance protection, and if their policy is with a mutual life office which subsequently demutualises they would lose the potential of any windfall payments.

However if you have considered these alternatives and have decided to encash your with profit policy then esp should be able to help you get the best price.