Endowment Selling Answers

Why sell an endowment policy?

Many policyholders want to sell their endowment because it has performed badly or they want to raise money now. Often the surrender value, obtained if the policy is surrendered to the insurance company, will be too low. An alternative is to sell your endowment to a company, or broker, that buys secondhand endowment policies.
It is important to obtain a number of quotes before selling an endowment policy so that you can obtain the best price.

Which endowment policies can be sold?

There are different types of endowment policies and not all can be sold onto the secondhand or Tep market. If you have a type of unit linked endowment you will not be able to sell the policy, although other options may be available.
If you have a with profits endowment then you are likely to find a number of companies will offer to buy your policy. The quotes you receive should be significantly greater than if you surrendered the endowment to the insurance company. They could be as much as 10-15 percent more in some cases.
It is important to note that you will probably only be able to sell an endowment if it has been running long enough. For example, members of the APPM can only buy an endowment if it has been running for one third of its full term or five years, whichever is longer. You are also unlikely to be able to sell an endowment policy with surrender value of less than £3000, although the APPM says that "approximately £1,000 minimum surrender value is required"

How quickly will I get paid?

After accepting an offer for your endowment and returning the necessary paperwork, payment could be received in as little as four weeks, although it can often take longer.

Should I sell my endowment policy?

Only the policyholder can decide if its worth selling their endowment and should consult a financial advisor about their options.
Alternatives to selling an endowment include making the policy "paid up". This means that the policyholder stops paying the premiums and accepts they will receive a smaller amount when the policy matures. It is also possible to take out a loan against the value of the policy.
Remember that you lose the life insurance cover if you make the policy paid up or surrender or sell the endowment.

How Selling Endowments Can Help Your Financial Future

Selling an endowment is something any non profit making institution no matter the size or type, can achieve. They can ensure the future of the institution with a financial Endowment.

Financial endowments really are just acquired funds that are somewhat restricted, where interest spending is the only permitted option of spending the money received from an endowment.

Generally, only a small percentage of the endowment earnings and interest, usually 5% are spent yearly to guarantee that the main funds develop and grow in time.

Some institutions and Professional money managers develop the practices of overseeing their endowment moneys, usually investing the funds in other areas, especially in the stock market and other investment avenues.

The main people who benefit from Selling Endowments are schools and universities. These endowments allow them acquire up large amounts of money over the years. These universities usually reinvest part of the interest received each year, allowing the main investment to grow in size.

If you own an endowment, you basically have four options. You can sell or surrender your endowment, or keep it while deciding to continue paying for it or not

It is very important that you don't move rashly. Surrendering or Selling Endowments early or stopping repayments could leave you out of pocket so it's crucial that you calculate the sums very carefully.

If you think it is necessary, you could see if you can get financial advice from an independent professional or person. I cannot stress enough on the fact that is important when deciding whether to surrender, keep or sell endowments. Please make sure that you have gone through all the potential losses and benefits you could get from these options.

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Sell Endowment Policy - Should I Sell My Endowment Policy

I have found several advertisements in national papers recently from companies offering to sell my endowment policy. However, which is the best option to get the best return?

It is estimated that over 4 million with-profits endowment policies were sold by insurance companies in the eighties and nineties. These policies were designed to last for up to 25 years and increase in value each year as a bonus is added to the amount of money that you paid in every month plus an estimated big bonus at the end of the term. Most of these policies were estimated on annual bonuses accruing at up to 9%, however in reality, with the fall in interest rates over the last 10 years, most policies are currently returning less than 1% per year.

These with-profits endowment policies were sold as a means to repay an interest only mortgage at the end of the mortgage period. Industry experts now predict that 9 out of 10 policies will not reach their target figure to repay the mortgage. With nearly 4 million policy holders having been informed by their insurance companies of the potential endowment shortfall, there is a big market out there for Traded Endowment Policies.

Many people have now made other provisions for paying off there mortgage, like converting them to a repayment type where the monthly payments include both interest and capital. So what do you do with your old policy?

Selling your endowment policy may give you a better return than just to cash in or surrender your endowment policy. However you may want to replace the life insurance component with a more suitable product.

I decided to sell my endowment policy and I accepted an offer that was 10% higher than the surrender value so I was happy. If you think it is time to sell your endowment policy then make sure that you check out all your options, starting with contacting your insurance company to get a valuation. They will advise you on any alternative options that they can offer to you as well. Read more about what investigations I did before selling my endowment policy at http://SellEndowmentPolicyReview.com

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Selling Endowment Policies The Easy Way

Even if you are expert when it comes to selling endowment policies, chances are that everyone is going to want a helping hand when they set out to do this. For this reason many people enlist the help of a company that specializes in selling endowment policies. Whether it's because you simply want to ensure that you get the best possible price for your policy or if it's because you don't know the first thing about them, you are going to feel more secure knowing that you have professionals helping you out.

One of the biggest advantages of using a company that specializes in selling endowment policies is the fact that they have inside knowledge of the market that you would never be able to attain. This means that they will be able to get the best possible price for you policy and will also be using good, reputable companies.

If you are a very busy person then it is unlikely that you are going to have time to phone around various different companies in order to try and find out the best price for your policy. Therefore using a company that specializes in endowment policies means that they do all the hard work for you and all you have to do is sit back and wait for the quote they give you.

Few people realize that there are hidden costs involved in selling endowment policies. However, any good company that you use to do this for you should include all the legal and administration costs of selling your policy. This means that you don't have to worry about any hidden costs or surprise bills when you have sold your policy.

When looking for companies that sell endowment policies it is important to use one that is authorized and regulated by the Financial Services Authority. If you do this you can guarantee that they will be governed by the highest standards of ethics and business practice which means that you are going to get a good service.

All members of staff who work for these companies will have had a lot of experience when it comes to selling endowment policies. They are bound to know more than you regarding the topic as this is their job and therefore they will be able to offer you good advice and help you to get the most out of selling your policy when it comes to doing so.

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Quick Cash by Selling Your Endowment Policy

If you are looking for quick cash, have you ever thought of selling your endowment policy? Yes, selling your endowment has the ability to make you cash in right away. However, this does not mean that you have to settle for the insignificant amount your insurance form is offering. There is a better way to go about this.

You will never know when you will have the need for immediate cash. There is no way to foretell what the future may hold. There will be situations when you will need cash right away. However, there are also times when there is not enough cash available.

The situations may vary. You may need it for emergencies. There may be an immediate need. You might need it to settle loan payments. You might need money to avoid foreclosure. You may need it for an opportunity that you cannot pass you by. For whatever the reason, there will be instances when you will need immediate cash right away.

Some people cash in by selling back their endowments to the firms where they purchased them from. However, this is not the wisest choice to take. These forms will only offer an insignificant amount for cashing in early. This amount may not be enough to satisfy your needs.

The answer lies in selling your endowment policy. This way, you get to sell your life insurance policy at a much higher value. With a much higher selling value, there will be more money at hand. This is the best option you can take.

There are various firms that will offer to buy these policies from you. There is a reason why they do this. They do this for investment purposes. In the long run, they will profit from buying your policy from you. It is a win-win situation for both sides. They earn more from their investment, and you get immediate cash for whatever needs you may have.

Although you do not get the entire amount compared to when the policy matures. It is still higher than what the insurance firms have to offer. You can get an offer that is much as 30% higher than what insurance firms have to offer. This is the most viable option you can take when selling your endowment policy.

In a rocky economy, there are more and more people that are in need of immediate cash. There are so many people who are getting desperate. There are just less opportunities to go by. This is when selling your endowment policy will be the best option for you to take. This way, there will be no more need for you to despair. When it comes to selling endowment policies, you no longer have to depend on the insignificant amounts insurance firms have to offer. There are other options you can take. There is a way for you to get more value for your life insurance policy. There is a way for you to get more money. You get quick cash by selling your endowment policy.

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Quick Settlement Through Endowments Selling

Are you the recipient of an endowment policy? If you are, the amount of time before the settlement matures may be too long for you. You may have an immediate need, and there is no way for you get the money right away. In case of emergencies or whenever a need presents itself, there will be no way for you to capitalize on your settlement. This was in the past. Now, you can make use of endowments selling.

We all know how these policies work. You will have to wait a considerable amount of time for you to enjoy the benefits. You have to wait for a number of years before you see any money. True, your future is secured, but you will have to wait for this time to come. Sadly, you never know when emergencies may come. No one wants to be stuck in a situation wherein you have no options.

These insurance firms may have the option to let you collect your settlement at an earlier date. However, the value of the settlement is too low for you to accept. The amount may not be enough to take care of the immediate need. Furthermore, the amount may not be enough to cover the initial investment of the policy. Cashing out early is just not worth it.

Through endowment selling, you are presented with much better options. With this option, you get a much higher value for your policy compared to the surrender value of these insurance firms. Compared to surrendering your policy, the amount you get from selling is much greater. This simply means that you get to take care of situations like emergencies in a much better way.

In today's troubled times, there is a greater need to have ready cash at hand. However, due to the financial crisis, there is just not enough ready cash to come by. This is when we have to make use of endowments selling. This presents us with options to take care of situations that need ready cash at hand. This way, you are always on your guard.

You may ask yourself how much more will you get from selling your policy? The value varies from policy to policy. However, it is still much larger than what the insurance firm has to offer for a surrender value. There are some policies that sell for 30% more compared to surrendering the policy. As you can see, the amount is much more significant.

Why are these policies purchased? Firms purchase these policies to gain more from their investment in the long run. This is why endowments are in demand. However, you have to understand that there are endowments that are more in demand compared to others. It is not the same for all policies. With this option, you not only get to cash out before your endowment matures; you get a higher value compared to surrendering it to the firm. This is a much better option for you to take. This is how you enjoy quick settlement through endowments selling.

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Selling Endowments

Many homeowners in the UK during the 80's and 90's purchased endowment policies. They were sometimes called mortgage endowment policies. These policies were a form of insurance and investment savings that would cover the final cost of the home mortgage when it came due. The policy holder would make monthly payments and these payments were to cover their mortgage and provide for some savings.

Despite intentions or promises, investments can vary in end value, and these policies did not come with a guarantee that they would pay out enough to repay the mortgage at the end of the policy term. What's occurring now is the endowments have a shortfall and cannot pay the owners mortgage payments. In some cases, endowment holders are reporting shortfalls of tens of thousands of pounds.

That has resulted in a lot of stress and disappointment for the policy holders. Many in a state of frustration are surrendering them to the issuing life companies for much less than their value. Life companies include Norwich Union, London Life, Scottish Widows, Prudential Life and many others.

Selling on the Secondary Market

Finance companies have appeared who help find buyers for these policies. Endowment policies can be traded, bought or sold on the open market. A few of the endowment policy trading firms have access to extensive numbers of potential buyers who are looking for the right type of policies to purchase. That means sellers can access buyers who are more interested in their particular policy and that results in a higher price.

Left to their own devices, endowment policy holders don't have access to the right services. Without a strong base of potential buyers, they're not likely going to receive the full value of their policy.

What is a Traded Endowment Policy?

Traded endowment policies or TEPs are policies which the original policyholder has sold and that includes the assignment of all future benefits. Endowment policies are long-term and fairly rigid in design. Many policy holders realized that the endowment policies do not meet their changing financial circumstances and goals. They can borrow against the value of the policy as it is considered a viable asset by banks and finance companies. They can also unload the endowment policy by selling them.

Only about a third of all endowment policies reach full term, (e.g., 25 years). Many are or were cancelled within a few years of their conception. That leaves about a third that may reach full term.

Traded Endowment Claims

Endowment policies were sold as a savings instrument that would help to cover long term home mortgages. Many didn't and won't and that has resulted in a lot of legal or mis-selling claims and the assurance companies who issued them. Financial services firms are offering to help with the process of policy holders selling their policies. To avoid scams and ripoffs in the UK, you should not sell your policy via any firm that does not adhere to the dictates of the Financial Services Authority's Mortgage Endowment Department.

There are numerous companies brokering or selling endowments and policyholders are recommended to ensure these companies are governed by the FSA in the UK.

In the UK, the government's Financial Services Authority has set out guidelines for managing endowment policy complaints and claims. The FSA's contact address is as follows: Mortgage Endowment Department, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.

Gord Collins provides marketing services for Endowment Express, a leading UK company specializing in Selling Endowments, located in London, UK.

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