At one time Endowment policies were regarded as an unexciting, but inevitable form of investment.

Thousands of people took out policies, just paid their premiums month after month, and never gave them another thought for 10, 15 or even 25 years;

but today, as the stock markets of the world have ceased to grow, so the value of the Endowment Policies based on shares has also not grown. This has led to a move away from Endowments as a saving vehicle and some people want to sell them.

Other people want to sell endowments because they no longer have their properties, (or the partner) which the policy was originally linked to.
Selling the Endowment Policy back to your insurance company is a relatively easy procedure.

You need only to ask the surrender value, and if you wish accept the price they quote, they will cancel your policy and send you a cheque. However, you owe it to yourself to see if you can get more then the surrender value, and you can do this by speaking to a Policy Broker.

C-4-C has been acting as a policy broker for some time now, and recommends making this sensible step before you just accept the Insurance Company's own surrender value.

Like any other type of Broker, they will find the best price for you.

C-4-C will contact a wide range of Market makers (the people who trade in "second - hand" Endowment policies) and see if anyone is prepared to pay more than the surrender value.

It normally takes the Broker 3 or 4 days to find out whether can get a better price than the surrender value;

but it is worth noting that whether you sell through a Broker, or whether you sell back to your Insurance company, the inevitable paperwork will take a least 2 more weeks.

Some Market Makers may want policies that mature in a certain year, perhaps to complete a portfolio of sequentially maturing policies. Other market makers may be looking for a certain value to bring a portfolio up to target.
Because of these varying demands it is difficult to predict what value any particular policy may fetch.

C-4-C says although gains of 30% or more have been achieved, that such offers are getting increasingly hard to find as general share prices fall; but if a policy has a Surrender value of several thousand pounds, then even 20% increase can be worthwhile.

If you think you might like to sell an Endowment Policy, then the first step is to 'phone your Insurance Company and ask for the Surrender value. Then contact a Policy Broker and ask if they can get a better price Kevin at C-4-C Congleton will be pleased to help.

Questions & Answers

Q: HOW MUCH WILL I GET?