Selling Endowment Policies

If you have an endowment policy you took out thinking it would cover your outstanding mortgage but now want to surrender it then read on.

Although there was a lot of press about mis sold endowment policies from the 1980s and 1990s most people should have gone through the FSA and had a resolution to this issue but if you are thinking of selling it then here's what to do.

Cashing Endowment Policies

There are many endowment policy buyer brokers on the market who will have your policy traded on the open market to surrender a policy which could be also termed as cashing in the policy.

The brokers who undertake this work effectively keep the policy open and use various tools to see how the policy may mature and offer you an amount which is generally greater than the surrender value offered to you by the insurance company.

Almost all endowments also carry a life insurance element. Each year your insurer will send out a statement showing you various amounts including guaranteed elements as well as yearly bonuses. The bonuses have reduced considerably in recent years due to the reduction in the stock markets and the general credit crunch and reduction in risk by the banks. The surrender value changes daily especially for those endowments directly linked to the stock market (which were possibly sold as endowments but were actually savings plans invested in the stock market).

Broker Offers

There are plenty of specialist brokers on the market who will quote you a value to sell your endowment policy to them. It's best to shop around and see who will provide the best quote for you. You'll need the following information at hand:

• Your insurance company name
• Your policy number(s)
• The amount you pay into the policy each month
• Any surrender values you have already been provided with

  Most of these companies are only taking policies that have some maturity with them so if yours is less than five years old it's unlikely you'll be able to sell it on in the second hand market.

  All these services should be free and contain no up front costs and you should also check the terms of the sale to see if any commissions are being deducted.

  All in all the FSA estimate around 4 million people were mis sold endowments with people believing it was guaranteed to pay off their mortgage. Of course that was not the case and if you either need ready cash or now know it's not going to pay off your mortgage and need the cash to make other arrangements then why not see what your endowment policy is worth on the open market ?

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