If you’re considering cashing in on your endowment policy then getting the best price is a must. Here’s how to secure the best endowment surrender value on offer in the UK.
Thousands of people across the UK have endowment policies designed to pay off their mortgages.
However, many of these policies haven’t performed as well as expected and more and more people are choosing to cash in their policy early and switch to a repayment mortgage.
Whether you’re looking to cash in on your investment or cut your losses, when you sell endowment polices it makes sense to get as much cash back as you can and this is why you shouldn't simply surrender your policy to your endowment provider.
Here’s what you need to do to get more from selling an endowment.
Check you are able to sell
Some types of endowment policies cannot be sold to second hand companies, namely unit linked endowments, so if you hold a policy of this type you may have to contact your endowment provider to discuss other options.
If you have a with profits endowment then you should be able to choose from a wide selection of companies willing to purchase your endowment.
Is now the time to cash in?
Before you start searching for endowment policy quotes, you need to ask yourself should I cash in my endowment?
Although many endowment policies have struggled to match their predicted growth forecasts that doesn’t necessarily mean your should sell endowment policies in a rush or do so without checking current value.
Equally if your existing endowment has performed badly in the past and is still struggling, you may decide that continuing to pay money into the policy would be sending good money bad and that you’re better off cashing it in.
You should also consider what you would do with the money when you come to sell, you could pay the lump sum off your mortgage, or if you have outstanding expensive borrowing and little in the way of a mortgage left you could use the money to clear this.
Look for a specialised buyer
If you want to cash in your endowment policy you could get anywhere up to 40% more than the endowment surrender offer from your assurance company by selling to a specialist endowment buyer company on the traded endowment market.
Essentially these specialist buyers will assess each policy on its merits rather than offering a set surrender value and as a result are often willing to pay substantially more.
How long have you had the endowment?
Once you decide that you want to sell your endowment you will need to find a buyer willing to pay you as much for it as possible.
A good way to start this process is to get a surrender quote from the company that holds your endowment policy; this will give you a starting point to improve upon.
Once you've done this you're ready to start comparing your options. The first step is to exclude endowment companies that only buy endowments of a certain age.
Ask how old will my policy be when I come to sell my endowment – and eliminate the endowment companies who won’t consider buying your policy.
Similarly, you'll need to check the minimum surrender value specified by each endowment buyer. It's only worth approaching those that will be willing to purchase your endowment so make sure you find out if yours stands a chance before you ask for a quote.
After you have established which endowment buyers will be interested in purchasing your endowment policy it's simply a case of getting quotes from each and settling with the provider that gives you the most money in return.
What are the fees?
Some endowment companies will charge a valuation fee when assessing your endowment, this fee can vary across the board so it makes sense to check exactly you’ll be charged.
You'll need to take any charges into consideration when you're comparing the competitiveness of the quotes you get.
To compare endowment policies to find the best endowment surrender value use our sell my endowment comparison table.
Seek advice
As selling your endowment policy is a one way ticket and you can’t get it back once it’s gone, it makes sense to seek some independent advice before committing to selling an endowment.
For more help when you come to sell you policy read our guide: How to Get The Best Deal When You Decide to Sell Your Endowment Policy.
