When thinking of Selling your Endowment firstly establish the policy type
Policies are catagorised in to two major groups traditional with-profits or unit-linked.
unit-linked
Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. Units are encashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units.
We know of no one currently trading these type of policies on the second hand endowment market.
To tell if your policy is united linked by the policy number please click here
traditional with-profits
There is an amount guaranteed to be paid out called the sum assured and this can be increased on the basis of investment performance through the addition of periodic (for example annual) bonuses. Regular bonuses (sometimes referred to as reversionary bonuses) are guaranteed at maturity and a further non-guaranteed bonus may be paid at the end known as a terminal bonus.
Can any type of endowment policy be sold?
- With-profit endowments
- Low-cost endowments
- Whole-of-life policies
- Unit-linked policies
- Non-profit endowments
Whole of life, non-profit and unit linked or "unitised" policies are not.
Other criteria which determine the suitability of a policy, include the life company, length of time that a policy has been in force and the surrender value.