Do you have a shortfall on your endowment mortgage?
Are you thinking about selling your endowment policy?
IMPORTANT:
Endowments should where possible be continued through to maturity,
as this usually provides the greatest returns. If you are not
sure about surrendering or selling an endowment, please do not
hesitate to contact us for free financial advice.
 Click for an online quotation on your
endowment
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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A few recent testimonials from
satisfied customers:
A quick note, just to say thank you, and what a pleasure to deal
with such a well run and professional company... I am delighted
with the speed, honesty and courtesy I have
been shown during the sale of this policy.
Kind regards, Mr D
.. may I thank you and your colleagues for a very useful service.
Always kept up to date, never in the dark. A first class service,
thanks again.
Regards, SH, Lincoln
The service I received was excellent in all communications involved.
Friendly, polite and very quick response to all matters involved
in a swift, easy, smooth transaction. Many thanks. Mrs C
Many thanks for your assistance in selling our endowment policies.
Mr S. (Manchester)
Just wanted to say a huge thank you. The cheque arrived on Saturday.
That's 23 days from receipt of paperwork via email, to receipt
of cheque for the sale of my endowment. Most impressive.
Kindest regards,
Mr D from Herts.
Just thought we'd drop you a line to let you know we had received
cheque on Friday for sale of policy. Thanks for all your help
and assistance. Mr S
Thank you very much for your help and the professional way in
which you dealt with this matter. I would have no hesitation
in using your company again or recommending them to my friends.
Mr N
I'm very impressed with how fast the policy sale was, any potential
problems were dealt with in an efficient & friendly way.
We have no hesitation in recommending your services. DT
I just wanted to write and thank you for the excellent service
you have given me. I am very pleased with the way you have dealt
with the sale of my policy and will be recommending you to my
friends. Incidentally, the cheque arrived from the buyers yesterday.
Regards, MJP
Great ...thanks for all your help.
Regards, RW
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