Could I buy a second hand endowment policy privately?
Discussion
As per the header really. Is there anything to stop me advertising locally for someone that might want to sell their endowment to me privately?
I'm thinking the seller won't have to pay a TEP company any fees nor will I so we're both winners. I am aware I'd need a signed deed of assignment and have to take on the remaining payments, get a current surrender value etc.
Does it have to be done through a financial institution? Can I do it direct with the seller?
I'm thinking the seller won't have to pay a TEP company any fees nor will I so we're both winners. I am aware I'd need a signed deed of assignment and have to take on the remaining payments, get a current surrender value etc.
Does it have to be done through a financial institution? Can I do it direct with the seller?
Well it seems no one has suggested you can't do it privately so to answer the question posed above. It makes it easier that you know the person because that way you get to know if they died and can then claim the payout as the policy would have been legally assigned to you. The bit that might be difficult is that when it matures you may find that they get a bit pissed off with you for making a profit out of them. The relatives could see it as you making a profit out of their death if they don't live until maturity.
Looking at the major player Surrendalink they have various policies for sale with varying prices, maturity dates, continuing premiums and issued by various life offices. They quote a surrender value and also locked in bonus values. They obviously build in a profit for themselves in the asking price and then quote what they think is the likely maturity value. The potential profits look good but then they would wouldn't they! It all depends on the final bonus declaration at maturity date which could be higher or lower than projected. Different insurers have different levels of success at investing the money and there must be a level of uncertainty.
I fought if it were possible to cut out the middleman you'd be a lot more certain of making a decent profit. The pitfalls of doing it privately I guess are getting a legally acceptable Deed of Assognment (that the Life office will accept) and that the surrender values etc are what the seller claims them to be.
Anyone have any experience of buying one privately?
Looking at the major player Surrendalink they have various policies for sale with varying prices, maturity dates, continuing premiums and issued by various life offices. They quote a surrender value and also locked in bonus values. They obviously build in a profit for themselves in the asking price and then quote what they think is the likely maturity value. The potential profits look good but then they would wouldn't they! It all depends on the final bonus declaration at maturity date which could be higher or lower than projected. Different insurers have different levels of success at investing the money and there must be a level of uncertainty.
I fought if it were possible to cut out the middleman you'd be a lot more certain of making a decent profit. The pitfalls of doing it privately I guess are getting a legally acceptable Deed of Assognment (that the Life office will accept) and that the surrender values etc are what the seller claims them to be.
Anyone have any experience of buying one privately?
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