Frequently Asked Questions (FAQs)
How difficult is it to sell an endowment?
In short, it's easy. We help you sell your endowment policy by making the process as simple as possible - you can start now using our secure online quotation form. Most of the paperwork merely requires your name, address and signature.
How do I find out if my endowment policy can be sold?
After receiving a quotation enquiry, we submit basic policy details to all of the market makers that buy "with profits" policies. As long-established specialists in selling endowments we have business links with all of the major endowment buyers and make your life easier as you only have to submit the details once using our online quotation form.
We aim to get you the highest possible price for your endowment by finding and negotiating with policy buyers. Please note that if any of the market makers have seen the policy details via another source (you directly, or another broker), most will not deal with second or subsequent enquiries. If you receive a higher purchase offer than ours, the most likely reason is that our enquiry was not dealt with first by the market maker that has made it.
What increase over my endowment surrender value is possible?
We do not (and never will) advertise that you could get 30%, 40% or even 50% more for your policy. In 2005, the highest increase that we have achieved for a policy is more than 70% over the surrender value - but this is highly unusual. The average gain on an endowment sold rather than "cashed in" is usually between 5% and 15% over the surrender value.
Is there a fee for getting a quotation for my endowment?
No. As one of the UK's leading endowment brokers we contact all of the market makers to try to get the best price for your policy. This service is free and if you then proceed to sell your endowment we will be paid by the purchaser and not you. The offer that you receive will always be "what you see is what you get".
How long does it take to be paid for a policy?
This depends on who the purchaser is and which insurance company your endowment is with. Many sales are completed in about a week, but the average is 3 to 4 weeks.
Is selling my endowment policy safe?
Until you have been paid for your policy, it will remain your property. Even though the purchaser or their solicitors will ask for the policy document prior to completion, until you have been paid, it will belong to you.
Additionally, when you use Endowment Policy First you are dealing with an Independent Financial Adviser. Endowment Policy First is an online trading name of Lewkay Financial Services, who are authorised and regulated by the Financial Services Authority (FSA). There are several layers of security when using our company and we will be happy to explain these in detail at any point. Our online quotation form uses high security encryption which ensures that your personal details cannot be intercepted by a third party after submission.
What does the sale process involve?
This is explained in detail on our "selling endowment info" page.
What happens to my endowment policy when sold?
As soon as you receive payment, the buyer will own the endowment and one of two things will happen to it. The purchaser will either hold on to the policy for their own portfolio, or will sell it on to a fund or private investor. In either case, any rights or responsibilities connected with the plan become the liability of the new owner.
Which types of endowment policy are tradable
Only traditional With Profits endowment policies can be sold and not unit-linked plans. You will be able to determine whether your policy is a traditional With Profits endowment or unit-linked by the annual notification sent to you. If this shows a basic sum assured (also referred to as "basic benefit", "With Profits sum assured", "With Profits benefit", or "amount to which bonuses are added") and bonuses, it is probably a traditional With Profits plan. If your statement shows units in either a With Profits or any other type of fund (e.g. "managed", "balanced", or "equity"), then it is unit-linked and you will not be able to sell it.
Why can't I sell my unit-linked endowment policy?
Unit-linked policies almost have a "face value". This is calculated by multiplying the number of units held, by the value of each unit. In very simplistic terms, a unit-linked endowment policy containing 100 units with a price of £1 per unit would be worth £100, less any early encashment penalties that are applied by the insurance company.
Why have I received a higher offer for my policy than your offer?
As stated above, when we receive an enquiry, we submit basic policy details to all of the market makers that purchase With Profits policies. If they have already seen the policy details from another source, most market makers will not deal with second or subsequent enquiries. If you have received a higher offer than the one from us, the most likely reason is that our enquiry was not dealt with first by the market maker.
One final point to note is that there are two types of "offer" that you might receive. We only deal with firm cash offers to purchase policies, but there are companies that may give you an "indicative sale price". An indicative sale price is only an indication of how much a company feels that you may get if you give them sole marketing rights to the policy for a period of time. During this time they will try to find a purchaser for the policy at the indicated price.
An indicative sale price is therefore not a guaranteed amount that you will receive and this is why we do not deal with these companies.
Please be aware that some written "offers" are not firm offers and the wording may not be very clear as to which type of offer they are. If in doubt, we will usually be able to tell you about the offer you have over the phone (without obligation), if you know the company that you are dealing with.
Is selling or surrendering the policy the only option?
Endowment policies are designed to be long term commitments and cashing one in early may mean you receive less than the premiums you have paid. You may be able to get a loan on the policy or make it "paid up". The Association of British Insurers web site has more information here.
What will I need to sell my endowment?
You will need to have the original policy document, some proof of identity, address and age.
If I surrender or sell my policy can I still claim compensation for endowment mis-selling?
A claim for mis-selling is still possible providing you can supply evidence that you were the policyholder. Which? (tm) has an active campaign for mis-sold endowment mortgages or you can find more information about endowment mortgage shortfalls at the BBC web site. |
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