Should i sell my endowment policies

Also, the policy must have been running for either a third of its entire term or a minimum of five years - at and-a-half years old your endowment almost certainly satisfies this requirement. Call Halifax for a surrender quotation and then contact the Association of Policy Market Makers APMM , the regulated industry association for traded endowments for a free endowment valuation.

You can then decide whether to accept any offer the APMM makes. Can I sell my endowment policy? ET Engage. ET Secure IT. Tax How to file ITR. Tax Saving. ITR Forms. Income Tax Refund. Tax Exemption Limit. Income Tax Slabs. Insure Life Insurance.

Health Insurance. Motor Insurance. Other Risk Covers. Personal Finance News. Mutual Funds. Rate Story. Font Size Abc Small. Abc Medium. Abc Large. Before you can sell it, you need to find out which insurance company provides your endowment. Check your:. Paperwork : If you still have the documents you were given when you took out your endowment, check which company you used.

Bank statement : You usually have to make a regular payment into an endowment. Your statement should show a direct debit to the company each month. Mortgage company's records : Your original lender could give you details of the endowment you took out alongside your mortgage. What type of endowment policy you have. This information should be included in your policy's annual statement. If you cannot find it or anything is missing, ask your provider.

Endowments usually mature after between 10 and 25 years. If you took it out with a mortgage, it should finish at the same time as your mortgage. Your statement should tell you how much the endowment is likely to pay out when it matures.

It may also give the surrender value , which is the amount your provider pays you if you cancel the policy. But this amount is likely to have changed since your statement was sent, so ask your provider to confirm the current surrender value. You have to give the surrender value and date when you sell your endowment to another company. Most companies only accept this if the date is within the last 30 days.

The companies that buy endowments have rules about the types of policy they accept. For example, they might only buy with profit policies with:.

You can sell your endowment on the TEP market using a traded endowment specialist. Your provider pays you a lump sum now instead of at the maturity date. You usually get much less than if you wait until it matures, and surrendering your policy could also come with fees and penalties. This is called a market value adjustment, and it could mean you get back less than you have paid into your policy.

Some charge smaller penalties when your maturity date gets nearer. You can avoid surrender fees and usually get more for your endowment if you sell it to a third party instead of surrendering it. Can you surrender your endowment for free? You can get quotes for selling your endowment for free and with no obligation to go through with the sale.

Get quotes from several companies and compare this to how much you can get:. If you surrender it : Make sure the amount they give you takes into account any fees you have to pay to your provider.

If you keep it until maturity : Subtract the cost of the premiums you have to keep paying until it matures. If you keep it but stop making payments : You do not need to consider the cost of ongoing premium payments. You can find out the surrender value and maturity value by checking your most recent endowment statement or asking your provider.

Working out how much your endowment can pay out with each option can help you decide which is best. When you ask for the maturity value, remember that the amount may be estimated. Some policies include a terminal bonus, which is paid when it matures and can be around half an endowment's final value. But this amount depends on how well the investment performs and is not guaranteed.

But other policies include guaranteed annual bonuses, which pay an agreed amount every year, e. Traded endowment companies have rules about what types they are willing to buy, usually including restrictions on:. The type of policy e. Once you have details of your policy, you can check which companies are able to buy it.

Selling your endowment often means you get less than if you wait until it matures. But if you need the funds urgently, for example to pay off a debt, selling your endowment could help you cover this. If you took out your endowment to repay your mortgage balance at the end of its term, make sure you find another way to do this.

Selling your endowment could make you enough money to pay off your mortgage balance.