Best Price Endowment Selling Process And The Future Of Teps

The traded endowment market exists because over 100,000 people each year decide to sell endowment policy or surrender endowment.

Most endowment life insurance policies were originally taken out for 25 years, but the majority of policyholders never wait until maturity for cashing in endowment and surrender them. In many cases, the endowment policy surrender values offered by insurance companies are less than the market value. In addition, investors are keen to buy traded endowment policies as part of their investment portfolios. The market exists because there are people willing to endowment cash in and people wanting to buy them for investment purposes.

trade endowment

In 2003, the government estimated that about eight in ten of the endowment policies then in force were unlikely to pay off the mortgages they were taken out for. Since then, nearly 70% of those facing a shortfall have re-mortgaged, sought financial advice or applied for compensation. However, about 700,000 people had still done nothing about their endowment shortfall. The general rule is that, people must complain within three years of receiving their first "red letter" – outlining a likely shortfall – from their insurance company or lender. Under industry rules, insurers are allowed to ignore complaints made after the time bar comes into play. Specialists say that, ‘2013 will be the peak year for endowments reaching maturity’. Nevertheless, endowment life insurance policyholders now can imagine the future awaiting them and selling endowment policies on time is the best option ahead.

life insurance purchase

The endowment policy selling process starts when the owner contacts with the TEP brokers. The details are forwarded to the trader who will endeavor to beat the current endowment surrender value. This service is completely free of charge and there is no obligation if you log on to www.bestpriceendowment.com.

Every offer made by Best Price, to sell your endowments, will be higher than the current endowment surrender value offered by the respective life office. If you decide to accept the offer, you simply need to complete the acceptance form and return it to them.

After receiving your offer acceptance letter, they approach the life office to clarify the policy details. The endowment policy buyer then looks to place the policy into a portfolio with other policies. There can be anywhere between 5 and 300 policies in a single portfolio. As soon as the endowment policy is reserved into a portfolio, they will look to complete the sale as soon as possible. The Endowment selling process is as simple and secured as that if you contact an F.S.A (Financial Services Authority) authorized and regulated organisation like Integrity Financial Solutions Ltd.

For further details or selling endowment, one may contact Integrity Financial Services. Phone: 08701 287 330/1/3
Fax: 08701 287 334/5
Email: enq@ukintegrity.co.uk
Address: Silvester House
Silvester Road
Waterlooville, Hampshire
PO8 8TD

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Buying Endowment

Buying Endowment

Before this guide, you have to understand what a budget to start the primary concern is a mixture of life inlcuding growth in investment savings plans, there is a premium-based package that a date certain, the premium is paid by Foundation invests in the stock market political office, and when the endowment policy matures, is the owner has paid the amount agreed with bonueses if the holder dies in his term, then the insurance company to pay itsBeneficiaries.

Buying Endowment policies can also be used to repay the loan, the mortgage foundation is a different story than the premium paid on a monthly basis for interest on the loan.

Necessary measures be taken:

The assessment of financial needs:

You have to evaluate all your financial needs, and would be even better if you consult a professional before you buy endowment policies were off, as there is a wealth of types, such as:
Low costTalent, build traditional allocation of profits, traded endowments, endowment drives .. etc.

And of course all the advantages and disadvantages and each of their own, which reinforces that fact that you should find out, shut your financial needs and capabilities and to invest in the right way that suits you more.

Selecting an insurance company with a good reputation:

This is very important, you need a top Buying Endowment companies for the purchase of life insurance capital before startingDeal with them or them your confidence, discover the company’s market presence and have to check every single fact, this way you can know for sure who you are what your hard-earned money.

Front-end load estimated:

What are the main installation costs, including management fees and commissions, usually are high in the early and thats why you need to start to understand the past performance of the fund and of their rights before buying endowment policies.

ReviewEquipment Mortgage Fee: If they are mortagage insurance capital life go, you need the mortgage by charging their fees before buying Thoroughly evaluate capital Occasionally life, the lender charges more for the loan processing or front, so make sure you think your investment charge, instead of the autopilot.

Options for funding of retirement or sale:

Instead of spending your endowment policy you can simply sell the TEP market and make a great value out of it,And it is much better equipped as a foundation, because it has a better value for you and the insurance.

5 Great Tips for buying endowment policies:

* Consult a professional, such as financial investments can influence your finances for a long time.
* Study carefully all the details of insurance and then buy when you are 100% secure.
* Before signing any agreement or contract is make sure you understand every detail.
* Choose the best policy that fitsYour financial needs so you can get the best value for performance.
* Be sure to plan, monitor and protect the flexibility for each alternative, if unwanted changes in your finances.

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Endowment Advice – Buy Endowment

Life Insurance – The Three Most Common Types Of Policies Explained

The life insurance industry has been misunderstood when it comesdown to the sale of life insurance policies. Folks mustappreciate the fact that dying is just a part of life.

There are many things that must be considered before purchasing any life insurance policy. There are 3 main types of life insurancepolicies to look at Term, Endowment and Whole Life. Let’s take a look at these three.

Whole life insurance is designed to cover you for your wholelife. When you pay your monthly premiums a portion goes to payfor your life insurance while the rest goes into a savingsaccount. This savings account builds what is known as "cash value"that you can borrow against, if needed, after it builds, but itmust be repaid.

These Whole Life Insurance policies "mature" whenthe insured individual turns 100 years old. At this point, theinsurance company will cash out the insured person for "facevalue" and cancel the policy. Face value is the amount that thepolicy would have paid in the event of the death of the insured person.

Endowment insurance policies are designed to be paid for aspecified amount of time until the policy "matures". Some reasonsfor Endowment Insurance could be college tuition, retirement,ect.. Endowment policies are normally more expensive as they’redesigned to be paid in full after a certain period of time ratherthan being paid over the period of the insured person’s life.

Term life insurance is the least expensive type of policy thatyou can buy. These policies can be purchased for a specific timeperiod or "term" just as the Endowment policies, however there isno cash value accrued with term insurance policies.

Term policies are perfect for those that need additional securityover a specific time frame. An example would be the breadwinnerof the family needing additional insurance coverage during his or her working years when they would have more obligations to meet.

Before buying any life insurance you need to sit down, with yoursignifigant other, if you have one, and go through every bill that you have.Seperate these bills by figuring out what your regular monthly expenses arefor your household and how much you have going out in payments that willeventually be satisfied.

Examples of payments that will eventually be satisfied are car, boatfurniture, home, ect. These should be figured into the amount of coverageneeded in order to pay these off in the event of the death of the breadwinner.

The other pile will include what your living expenses will be like withoutthose payments. This pile should include homeowner’s insurance, life insurancefor the surviving family members, food, utilities, clothing, ect.

You’ll also need to take into account the loss of income from the breadwinner.This can be tricky, especially if you have children. You’ll need to take intoaccount their ages, how many years they have remaining in the home, medicalinsurance, dental insurance, school expenses, ect.

Finally, you’ll need to allow for enough money to survive in the event that you’re unable to work or simply need to take a period of "healing" time.The passing of a loved one is never an easy event, but it’s made much worse whenyou’re not allowed the time to gather yourself before being thrown back into theroutine of life.

The things mentioned above are designed to give you some ideas as to what youneed to be taking a look at. Each family and individual has different needsand expenses though and you’ll need to take your time when doing your financialinventory.

For more information about the different types of life insurancethen you should contact a licensed agent and set up anappointment at your earliest convenience.

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Selling Endowments

Selling Endowments

If you are thinking of selling your endowment policy then LSA Endowments could pay you more then you would get for surrendering it.

LSA Endowments are a major purchaser of endowment policies in the UK and we aim to use our experience, and dedication to service, to ensure the process of selling your endowment policy is fast and hassle free.

Selling your endowment does not need to be a daunting task. At LSA Endowments we understand that many customers may feel that they have been let down by their endowment policy in the past. For this reason we aim to make the process of selling your endowment as simple and straightforward as we can, and will provide you with a no obligation quote for your policy when you submit your details to us.

As a major purchaser of endowments we make a firm offer to purchase your endowment policy, rather than other companies who may be interested in finding a buyer for your policy, and may not attain the offer price that you first receive.

Once you have submitted your details to us, one of our purchasing team will be assigned to your case, and will contact you regarding the offer that we can make to purchase your endowment policy. We will then discuss whether you would like to see the offer in writing and ensure that we send the written offer to you straight away. At this point, the member of our purchasing team dealing with your case will be glad to explain and answer any questions regarding the sales process that you may have.

Firm offers, fast completion, excellent service and no obligation quotes.

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Selling Your Endowment Policy

Selling Your Endowment Policy

An endowment policy is an insurance contract that covers a certain period of time. The policyholder receives a lump sum, together with the bonuses amassed during the period, when the contract mature or in case of death. The maturity period can be ten, fifteen or twenty years. There are some policies that pay if fatal illness occurs.

The benefit of endowment is, unlike whole life insurance, the sum paid plus the bonus will be given to the holder. The money can be used by the insured in whatever expenses he needs to pay. Or, he could reinvest this in an annuity policy so he will get a monthly pension for the rest of his life.

Bonuses

Endowment plans typically fall under two kinds. These are: reversionary bonus and terminal bonus. Reversionary bonus is also known as regular bonus. This is a yearly bonus added to the sum which the holder will receive after the policy ends. The amount of the bonus will depend on how the insurer’s capabilities and performance. The other bonus is the terminal bonus which is a bonus for loyalty paid out at the end of the period of the policy.

Why Sell Endowment Policies

There are a number of reasons why an insured would want to sell their policy. One possible reason is they may no longer need it. Perhaps, the kids have grown up and they have their own policies too. Redundancy of policies occurs. Thus, the insured does not want to continue paying for the endowment policy.

Divorce is another possible reason. Spouse need to divide their properties and income including the earnings from insurance policies. If there are changes in the mortgage agreement, the insured might need to sell or surrender it.

High premiums could be another reason. The holder may not be able to afford paying for the monthly premiums anymore. People who own policies may want to transfer the plan so they can have better quality of life as they reach the retirement age.

Cash in Endowment

The policyholder may desire cashing in endowment policies early or surrender endowments. The surrender value is computed by the insurance company based on the length of the insurance policy and the amount paid.
Aside from surrendering endowment policies back to the insurance company, another option that holders may want to explore is to sell endowment policies. Selling an endowment policy can potentially earn you more than surrendering it.

The traded endowment policy (TEP) enables insureds to sell their with-profits endowments for a higher price than what the usual value for surrendering the policy is. This rule only does not apply to unit linked with profits policies. It is only applicable to conventional with-profits policies that receive yearly bonus.

If the holder decides to sell the endowment, finding an investor that will pay for the policy is truly helpful. In most cases, the selling value of the insurance is in the range of $100,000 to $300,000. If the face value is higher, the holder can expect higher endowment policy sales.

Criteria

In selling endowment policies, the insured need to consider the requirements of the third-party company buying it. The contract must first be in good standing. The person selling the policy must meet the requirement for age. Also, transferring the policy to another person should be allowed.

In most cases, the company would want to purchase endowment policy with-profits or with-profits whole life. The holder must have the policy for more than 5 years. Policies that do not have with-profits clause may not sell as much.

Surrender value may also be another consideration. Some companies will only buy endowments with surrender value of at the very least $ 3,000. If your endowment does not qualify, then you have no other option but to accept what the issuer offers to you.

Selling Process

The whole process can take four to six weeks to complete. The length of time will depend on the number of cases the company is handling. Unfirm offers may take longer because of the need to look for a purchaser of endowments.

Four stages of Selling

1. Valuation. This is the phase where ownership of the policy and the status such as ‘paid up’ are confirmed. You will have to disclose several key information during the valuation stage such as name, address, surrender value, attaching bonuses and their dates, premium payable, assured sum and so many others.

The surrender value has to be the most current valuation. This is important so selling price of the policy will not be lesser than surrender value.

The information will enable the purchaser to assess the fair settlement amount for the endowment. Once an offer is provided, the insured will decide if it is best to sell or continue with the policy. To have a fair idea of how much the policy will be worth in the future, use the bonus rates and multiply it with the remaining number of years. The product will be more or less the amount the insured will receive once the contract ends.
If in doubt, consult a financial adviser. They can help you determine which option is the best.

2. Sales Contract. If the decision is to accept the offer then a contract stating the agreed price will be issued. The contract will state the length of time the offer stands which is the deadline for the final decision. The contract is a binding instrument which contains the terms and price the insured must adhered to once he decides to sell.

The policyholder must sign the contract note to signify his agreement to the terms. The contract note will state the agreed date the buyer will start paying the premiums. The buyer has to reimburse the seller for any premiums paid after the agreed date. Premium reimbursements are paid along with the selling price delineated in the contract.

3. Confirmation of the details of the policy and the title. The buyer needs to ascertain that all the details pertaining to the policy that provided by the seller are right. They also check if any amendments to the policy were made in the past which the seller did not disclose to the buyer. For instance, if the policy is currently used as a collateral for a loan.

4. Amending the Title and Completion. Before the reassignment of the policy becomes final, the buyer will conduct a bankruptcy check. The purchaser may use two attorneys to provide clear title before releasing the payment. Reassignment occurs once the payment is made. Change of title becomes complete once reassignment is done.

Before surrendering the policy to the insurer, it is important to study other options available such as borrowing using the endowment, making the policy paid up and consider selling it. If the insured believes that selling is the best option, then he should start searching for a purchaser. There are companies dedicated to the business of buying endowments which have the necessary experience on this matter.

Selling the policy can net the insured a higher value than surrendering it. The purchase offer is usually 10 to 25 percent higher than the surrender valuation. The marked difference could mean a lot of money will be wasted if the selling option is not considered.

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How To Buy Endowment Life Insurance Policies

ENDOWMENT POLICIES
Before you buy life insurance policy ask your agent about all possible options for you. Endowment policies are the most expensive of all insurance plans. For a period of time as for example, twenty years, you pay premiums which are greater than those required for any other plan corresponding to the same time interval. During the period that you pay premiums, you are insured for the face value of the policy. When the end of the designated period of the endowment policy arrives, your premium payments stop, and you receive the full amount of the face value. This particular feature of endowment policies may, at first glance, appear very attractive to you. Thus, it may appear to you that you are not only insured during the designated premium paying period, but if you survive the end of this period, the face value of the policy is paid to you rather than to your beneficiary. In this way you may enjoy the benefits from your insurance policy during your own lifetime.
When considering the purchase of an endowment plan, however, you should keep in mind that if you were to purchase term insurance instead, and bank the difference in premiums between the endowment and term plans, then at the end of the premium paying period, you will have in your private savings account a sum generally larger than the face value of the policy. Thus, if you purchase renewable term insurance, and deposit into your savings account the amount that you save in premiums by purchasing term rather than endowment, you generally will, at the end of the designated endowment period, have at least all the benefits available from endowment policies. Accordingly, you will have been insured during the designated period, and at the end of that period you will have accumulated in your savings account usually more than the full face value of the policy. The very important difference to note in the process of buying a life insurance policy, moreover, is that at any time during the designated period of the policy, your estate to your beneficiary will be greater under the term plan than under the endowment plan.
For example, under a $10,000 policy, a man thirty years old would have to make annual premium payments of $520 for the twenty year endowment plan. If he purchases term insurance for the same period of time, and deposits the amount that he saves on the lower premiums into a savings account paying only 3% interest, he will have accumulated the amount of $11,300 at the end of the twenty year period. If he receives 5% interest, his savings will be $13,000 at the end of the 20 year period. For 6% interest the savings will amount to $14,500.

Don’t believe that term life insurance policy is good for everyone. Look at your options and compare to make the right choice. Enter your Zip Code above to start comparing

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Buying Endowments - Second hand policies - TEP's

Buying a second hand endowment, known as a traded endowment policy (TEP) can be used as an investment strategy for a number of reasons.

You may be planning an investment strategy for retirement, paying school fees or a wedding for example.

Investing in a traded endowment policy may be a good investment, particularly if you look to buy into policies nearing maturity. These policies benefitted during the 1980's and 90's when bonus rates were relatively high.

If you decide to buy a traded endowment, you are, in effect, buying a 'with profits' endowment policy second hand from the policyholder who has sold the policy, usually to raise cash. Once you have bought the policy, you are taking on an endowment mid term, usually with at least five years' worth of bonuses locked in. You will agree to continue paying the premiums until the policy's maturity date.

However, because the assurance remains with the original policyholder, should they die before the end of the term, you would not have to continue paying the premiums.

Before you buy.......

As with all investments we would recommend that you always consult an Independent Financial Adviser before you proceed with any transaction. If you are considering buying a TEP the main thing to consider will be future bonus potential of the policy and the tax implications on the ultimate proceeds.

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Endowment Policy Buyers and Sellers

Endowment Policy Buyers and Sellers

The original endowments were designed to run for a 25 year period at a projected return of 7.5%. A the end of the 25 years the capital invested in the sharemarket should be sufficient to clear the mortgage on the house leaving the investor with a freehold house on which he has only ever had to pay the interest only payments. Unfortunately the stock market has not exactly been the most predicable of markets in the last quarter century and important word in the previous sentence was "should". Many endowment policy owners are discovereing they are not in that happy situation - they can end up being in the market to sell their policy for any number of reasons - most of which are distressing.

The most obvious reason why an investor needs to sell their endowment policy before maturity is because they need to sell their home. They may have married, got divorced, had too many kids, decided to emmigrate. Increasingly these days they may have to sell the house as the bank threatens foreclosure on them. In these cases they are suddenly in the position of needing to sell their policy.

In other cases its the endowment policy company who will approach the policy holder and tell them something has to change. The dismal performance of London's stock market means that often there is a requirement for the policy holder to come up with a higher monthly payment or even to pay off some of the debt. The natural reaction of many people put in this position is insted to look at selling their endowment.

The obvious buyer is that financial company from which you purchased the endowment policy. This can result in distreseesingly low quotes though. Onwers may only be offer 10% of the policy's face value. This is especailly true if the endowment has many years to run. Endowment policies are front-loaded - meaning that all your payments in the first few years go towards paying for the company's fees and charges.

A better option for those wishing to sell their endowment may be to approach an endowment broker. A broker will represent a number of institutions who are looking to buy endowments and you may well get a better deal from a third party than from the original comapny that you purchased your policy from.

Alternatively having discovered what your endomwent policy is worth on the open market you may decide instead to look at a third way. It may be worth holding your policy for its full term if you think the company will be in the position to pay the full amount as agreed. This may mean having to make a lump sum payment or increasing your payments in the short-term to save your money in the long-term.

Endowment policies have their issues in today's market but think carefully before you rush into selling yours.

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Endowment Policy Sales

There seems to be a bit of buzz in the financial world at the moment with people looking to sell their endowment policies. Given that endowment policies are financial instruments which have intrinsic worth then its hardly surprising that a market for endowment policy sales exists between willing buyers and sellers. Good old capitalism hasn't died yet. The truth is that at the moment, particularly in the UK, there are probably more people at endowment surrender than those on the buying side of the equation. In this article I'd like to take a look at exactly what an endowment policy is and the reasons for people wanting to sell them before their terms is up, who the buyers of those policies are, and alternative for those wondering whether they should sell their endowment policy.

Endowment policies were the flavour of the year back in the 1980's particularly in Britian. In the UK they had certain tax advantages and in a high inflation period with limited other investment options they made a lot of sense for those who had 25 years or more to go before retirement and a home to mortgage. The idea was simple - well simplish. The idea was that the home owner bought an endowment policy. The policy was in effect an interest-only mortgage secured against their home. The policy owner paid the interest only repayments - which were of course significantly lower than a traditional, repayment style mortgage which included capital as well as interest repayments. Meanwhile the capital raises by the mortgage was invested in the share market. Some endowment policies, know as unit endowment policies, are directly linked to the share market with unit prices fluctuating widely in line with the share markets ups and downs. The more conservative "profit endowments" were more a managed investements with the finance company attempting to smooth the bumps in stock market performance and giveing a more consistent income stream from the endowment policy.

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Sell endowments

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.

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Sell endowments

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.

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who buy endowment

who buy endowment

What is a traded endowment policy TEP

A traded endowment policy TEP is an endowment policy that the original policyholder has sold by absolute assignment of all future benefits. "Traded endowment policy" is merely a fancy way of saying second-hand endowment policy.

Endowment policies are long-term and relatively inflexible by their nature. Many people have found that these policies do not suit changing financial needs or circumstances.

If you took out a 25-year policy but after say 15 years decide you no longer needwant the long-term savings plan or it has not performed as you expected you have a number of options

• Selling to a third party in the second-hand market - the TEP market
• Making the policy paid-up
• Borrowing against the policy
• Surrendering the policy to the life assurance company you purchased it from

For a variety of reasons many policyholders cash in their policies early. According to the Association of Policy Market Makers only around 30 of all endowment policies actually reach maturity. A further 30 are cancelled in the first few years of their intended lifespan. The 40 that neither last the full term nor get cancelled are either sold or surrendered somewhere along the way.

Why would I sell my policy rather than surrender it

For the obvious reason! You may have decided for whatever reason that your endowment policy is no longer relevant to your financial circumstances. It follows logically that you will therefore want to get as big a return from your investment into the endowment policy as you possibly can.

First you should approach your life assurance company to find out how much the policy will be worth if you surrender it. This "surrender value" may or may not be more than you have actually paid in to the policy. Indeed you may be unpleasantly surprised by how low this is.

Endowment policies generally take approximately 5-7 years before their cash-in values match and then exceed the amounts of money invested although this performance cannot be guaranteed. You may well be familiar with the press coverage about why this is so - commissions to the sales people administration charges fund management costs etc. The key point is that long-term contracts rarely offer especially attractive short-term encashment values

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who buy endowment

who buy endowment

What is a traded endowment policy TEP

A traded endowment policy TEP is an endowment policy that the original policyholder has sold by absolute assignment of all future benefits. "Traded endowment policy" is merely a fancy way of saying second-hand endowment policy.

Endowment policies are long-term and relatively inflexible by their nature. Many people have found that these policies do not suit changing financial needs or circumstances.

If you took out a 25-year policy but after say 15 years decide you no longer needwant the long-term savings plan or it has not performed as you expected you have a number of options

• Selling to a third party in the second-hand market - the TEP market
• Making the policy paid-up
• Borrowing against the policy
• Surrendering the policy to the life assurance company you purchased it from

For a variety of reasons many policyholders cash in their policies early. According to the Association of Policy Market Makers only around 30 of all endowment policies actually reach maturity. A further 30 are cancelled in the first few years of their intended lifespan. The 40 that neither last the full term nor get cancelled are either sold or surrendered somewhere along the way.

Why would I sell my policy rather than surrender it

For the obvious reason! You may have decided for whatever reason that your endowment policy is no longer relevant to your financial circumstances. It follows logically that you will therefore want to get as big a return from your investment into the endowment policy as you possibly can.

First you should approach your life assurance company to find out how much the policy will be worth if you surrender it. This "surrender value" may or may not be more than you have actually paid in to the policy. Indeed you may be unpleasantly surprised by how low this is.

Endowment policies generally take approximately 5-7 years before their cash-in values match and then exceed the amounts of money invested although this performance cannot be guaranteed. You may well be familiar with the press coverage about why this is so - commissions to the sales people administration charges fund management costs etc. The key point is that long-term contracts rarely offer especially attractive short-term encashment values

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