How should I sell an endowment?

By THIS IS MONEY
Updated:

 

I'm thinking of surrendering an endowment policy. I have received an offer of its cash value from the company which supplied it but I'm wondering if I should offer it on the traded endowment market. Will I get more this way? PG, Swansea

Lee Portnoi, chairman of the Association of Policy Market Makers, (APMM) which speaks for some of the biggest companies who specialise in traded endowment policies says: If you sell this way you could get at least 10-15% more than the insurance company will give you. The APMM will get quotes for your policy from three of its members, and there are also independent financial advisers who can shop around for you.

To sell, your policy must be a with-profits endowment or whole-of-life policy that has been running for at least five years. There are no charges to sellers. If you want to shop around for yourself get the APMM's list of members (all PIA regulated) and contact them all, but shop around because each company might offer a different amount, and check that they are regulated by the Personal Investment Authority (PIA). You will need an up-to-date surrender value for your policy from your insurer, which must be over £1,000, and your latest bonus notices would help.

If you have a paid-up policy you can also sell it the same way but you won't get such a good deal - though you should still get more than the surrender value. The Association of Policy Market Makers is on 0171 739 3949.

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