henry d Posted July 27, 2007 Report Share Posted July 27, 2007 Has anyone sold as opposed to surrendered their endowment policy and how did you get on ? I`m having a look ATM and it seems to be the way forward as the performance seems to be pathetic. Cheers for any replies. Quote Link to comment Share on other sites More sharing options...
Wookie Posted July 27, 2007 Report Share Posted July 27, 2007 Classic FM keep hawking AAP as their preferred seller (or at least the one they advertise), but it seems that you only get a couple of k extra if you sell rather than surrender. Mind you, that's a T3 and a Swarski scope I s'pose... Quote Link to comment Share on other sites More sharing options...
Cranfield Posted July 27, 2007 Report Share Posted July 27, 2007 I know of a few people that have done this, for the same reasons as you have mentioned. They were "financially aware" people that considered it the right thing to do. Shop around and get the best deal possible is the obvious advice and the financial pages (especially at the weekend), are full of companies prepared to buy endowments. There doesn't seem to be a standard formula , so that you can estimate what is a good, or not so good deal. It will end up being the best you can get and what you decide is acceptable to you. The longer they have to run, the better the price apparently. Quote Link to comment Share on other sites More sharing options...
OldBill Posted July 27, 2007 Report Share Posted July 27, 2007 I have a friend is a financial adviser. He thinks that no matter how poor performing it is likely to outstrip any savings plan so to keep it. I have a plan for £35k coming out in 10 years, it is only expected to pay out £22k but I will have only paid in £16k. All the while I'm paying it I'm not spending it! Quote Link to comment Share on other sites More sharing options...
henry d Posted July 27, 2007 Author Report Share Posted July 27, 2007 I have a friend is a financial adviser. He thinks that no matter how poor performing it is likely to outstrip any savings plan so to keep it. Mine is for 28K and looks to make 15K, my mortgage will be payed in 4 years and SOME of the money from the endowment will be used for converting a boxroom to a 3rd bedroom and converting a brick shed that is attached to the house into a utility room and thus increase the value of the property by @10K. We have other stocks etc. which will be amalgamated into the remaining cash and invested so if my sums are right we will be better off, However this is dependent on the quotes we get back. I just wondered if anyone had done this and if they`d had any pitfalls or glowing results ? .......ooooh forgot to add , I might get a new shotty too............shhhh, mums the word Quote Link to comment Share on other sites More sharing options...
Oly Posted July 27, 2007 Report Share Posted July 27, 2007 You must wonder what's in it for the companies that buy them if they "aren't" performing??? Quote Link to comment Share on other sites More sharing options...
Cranfield Posted July 27, 2007 Report Share Posted July 27, 2007 You must wonder what's in it for the companies that buy them if they "aren't" performing??? Its called "long term risk". The endowment pays out 30k max at maturity. Current estimate is that at todays investment values it will pay out 18k. They buy it for 15k and take the risk. (all figures are for guide purposes only). Quote Link to comment Share on other sites More sharing options...
apbuild Posted July 27, 2007 Report Share Posted July 27, 2007 One thing to bear in mind Henry is that many companies that advertise to buy your policies for more than the surrender value only purchase those policies that are 'with profits'. If your policies are unit linked for instance, they will not be interested. Recently tried to sell my endowments and was caught by this one. Rob. Quote Link to comment Share on other sites More sharing options...
henry d Posted July 27, 2007 Author Report Share Posted July 27, 2007 One thing to bear in mind Henry is that many companies that advertise to buy your policies for more than the surrender value only purchase those policies that are 'with profits'. Cheers for that, they have it as one of the first things you`re asked Quote Link to comment Share on other sites More sharing options...
Dave-G Posted July 27, 2007 Report Share Posted July 27, 2007 Most endowments or other saving plans have under performed for the last few years due to low interest rates. Those rates are creeping back up so buying them as under-performers seems a good move. Quote Link to comment Share on other sites More sharing options...
tosspot Posted July 27, 2007 Report Share Posted July 27, 2007 got rid of mine when it was forecast that it wouldn't reach 50% of initial valuation no surrender companies would touch it it was EAGLE STAR went repayment and havn't looked back since Quote Link to comment Share on other sites More sharing options...
Pedro Posted July 28, 2007 Report Share Posted July 28, 2007 I've had one running with Legal and General for about 17yrs. For ages we kept getting the old red warning letters saying it wasn't performing However, about 2 months ago we got a green one saying it was on track I'm chuffed to bits as i thought about getting rid of it years ago. It may well be worth hanging on to for a while HD. P. Quote Link to comment Share on other sites More sharing options...
henry d Posted July 28, 2007 Author Report Share Posted July 28, 2007 Cheers Pedro, but it will take a lot to get it back on course from £13K down in 6 years. Quote Link to comment Share on other sites More sharing options...
Guest rabgoat Posted July 29, 2007 Report Share Posted July 29, 2007 every time i think of endownment policies it angers me soooo much,i was advised to take one out about 13 years ago and promised they were brill,then 3 years ago was told to get rid of and start again,i got a few grand back ok but wasted 10 years when i could have been paying of the mortgage proper, :( Quote Link to comment Share on other sites More sharing options...
Ballymac Posted July 29, 2007 Report Share Posted July 29, 2007 Touchy subject money, there are a lot of things to consider but tax can also come into this. It all depends how long your endowment has been running and how long is left to run, all to do wiith qualifying rules. Also the trading company mentioned earlier is a good indicator of what you are likely to get offered, providing you fill their criteria. As with most things there are good and bad policies and some are more marketable than others. I have a bit of knowledge of these things but once you have been given a quote this will help you decide if you can make more use of the money now or wait to possibly gain more, sometimes it can be a case of good money after bad. Quote Link to comment Share on other sites More sharing options...
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