Selling Endowment Policies....
Discussion
I have a couple of With-Profits policies that I have held for eight and five years respectively.
I no longer need them to discharge the Mortgages that I took out at the time and I am thinking of selling or surrendering the policies.
The policies have a surrender value of about £7000 and have had about £9700 paid into them over the term to date.
I don't desparately need the money, so there is no need to sell them for a loss, but by the same token, they are performing so badly that I am tempted to cut my losses and spend the cash on a little business venture that I have in mind.
Anyone know how to go about selling the policies?
Opinions, sarcasm, innuendo, insults, abuse and suggestions, both helpful and otherwise are as welcome as ever.
Cheers :drink:
Pat
I no longer need them to discharge the Mortgages that I took out at the time and I am thinking of selling or surrendering the policies.
The policies have a surrender value of about £7000 and have had about £9700 paid into them over the term to date.
I don't desparately need the money, so there is no need to sell them for a loss, but by the same token, they are performing so badly that I am tempted to cut my losses and spend the cash on a little business venture that I have in mind.
Anyone know how to go about selling the policies?
Opinions, sarcasm, innuendo, insults, abuse and suggestions, both helpful and otherwise are as welcome as ever.
Cheers :drink:
Pat
HarryW said:That's pretty good going.
Sold one of mine last year and got approximately +30% more than the quoted surrender value for mine .
Harry
If I could manage to get almost all my money out, then I'd get rid straight away and get my money working a bit harder for its keep.
Cheers
Pat
Can't rmember what the site was I went on as I've changed computers since, but it was effectively an on-line biding match from those companies interested in buying your policy.
The first estimate I got was for approx 10-14% over the surrender value, after a few days the highest bid was over 30%. It wasn't until this point that any commitment was required either eay, which I liked. If I remember the site I'll post the details up. I'm sure I got the idea from the Finacial section of the Suday Times at some point though.
The actual transfer took at least two weeks if not three.
This allowed them to check all the details provided, which up to this point are from you.
Re the question as to why people buy them. When I went through the process I looked into that aspect too. AFAIK its more to do with the fact that the projected maturity at 4,6 & 8% growth would give them a minimum return of nearer 10pa on their investment on my old policy.
The reason the surrender value is so low is because the insurance companies want their bread, butter, jam and you to lay over a barrel whilst they butt feck you too, yes they are greedy incase you hadn't noticed
.
As part of an investment portfolio my old policy is good value to someone, as they will no longer have to keep up the life assurance aspect of it either.
I saw it as a win win situation and it suited me, perhaps it will not suit everyone though.
Harry
edited for the pidgen england
>> Edited by HarryW on Wednesday 22 June 22:20
The first estimate I got was for approx 10-14% over the surrender value, after a few days the highest bid was over 30%
. It wasn't until this point that any commitment was required either eay, which I liked. If I remember the site I'll post the details up. I'm sure I got the idea from the Finacial section of the Suday Times at some point though. The actual transfer took at least two weeks if not three.
This allowed them to check all the details provided, which up to this point are from you.
Re the question as to why people buy them. When I went through the process I looked into that aspect too. AFAIK its more to do with the fact that the projected maturity at 4,6 & 8% growth would give them a minimum return of nearer 10pa on their investment on my old policy.
The reason the surrender value is so low is because the insurance companies want their bread, butter, jam and you to lay over a barrel whilst they butt feck you too, yes they are greedy incase you hadn't noticed
. As part of an investment portfolio my old policy is good value to someone, as they will no longer have to keep up the life assurance aspect of it either.
I saw it as a win win situation and it suited me, perhaps it will not suit everyone though.
Harry
edited for the pidgen england
>> Edited by HarryW on Wednesday 22 June 22:20
Funny this has come about, as I've been considering this too. I have two policies no longer tied to mortgages with a combined surrender value of about £20k. The bonuses added in the last couple of years have been pathetic, one even suffered a decrease in surrender value compared with last year, yet they are costing me nearly £60 per month and I don't need the life assurance. Asked for three quotes from endowment traders, only one bothered to reply, only to tell me that they could not better the surrender value. I only held onto them in wait for the Standard Life demutualisation, but at this rate I will be lucky if the value of the free shares matches the premiums I have wasted. Given they have only nine years to run, I don't see them recovering so I am looking to get out. I am also persuing a mis selling claim.
HarryW said:Thanks, Harry.
If I remember the site I'll post the details up.
I don't need to sell them, but I am pretty sure that I can do something more productive with the cash.
I have no inclination to sell for the mere surrender value, but if I could get +30%, then it is a different matter.
Cheers,
Pat
pdV6 said:
Why are these companies looking to buy them for in excess of teh surrender price? Do they know something we don't?
That's my thought - there has to be money in it somewhere.
of course! they are basically unit trusts with a term assurance attached to them - the value can go up as well as down and these companies bet that the value of the shares will rise
yertis said:
Is there a standard wording one should use when applying for compensation? I've got the FSA pack but it doesn't seem to give and explicit instruction for what form your complaint should take.
I hope this helps:
www.financial-ombudsman.org.uk/
I'm also in the process of complaining but since the firm (who sold the endowment policy) refused to co-operate, I wrote to the Financial Ombudsman Service who are now investigating the matter.
Good luck!
cosmoschick said:
Is there a standard wording one should use when applying for compensation? I've got the FSA pack but it doesn't seem to give and explicit instruction for what form your complaint should take.
I hope this helps:
www.financial-ombudsman.org.uk/
I'm also in the process of complaining but since the firm (who sold the endowment policy) refused to co-operate, I wrote to the Financial Ombudsman Service who are now investigating the matter.
Good luck!
as long as you have exhausted the complaints procedure of the institution that sold you the policy, the FOS will serve you well
if you have not yet, or are judged by them to have not, they will simply refer you back to the original provider
PatHeald said:
If I remember the site I'll post the details up.
Thanks, Harry.
I don't need to sell them, but I am pretty sure that I can do something more productive with the cash.
I have no inclination to sell for the mere surrender value, but if I could get +30%, then it is a different matter.
Cheers,
Pat
This just proves that as men we remember things at the stranges of times
, the link btw www.about-selling-endowments.co.uk/endowment_policy_quote.htm As I said before no harm in getting a price.
Harry
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff