Selling endowment policies

[Simpo Two]

I have two policies which aren't performing well and I'm considering selling them, the plan being to put the proceeds somewhere mroe fruitful.

I've had firm offers from AAP, who seem to be the biggest player in this market, but of course I have no way of telling if they're good offers or not. Can anyone recommmend or suggest other companies who could give me alternative quotes?

[Size Nine Elm]

I sold on an endowment a number of years ago - there are brokers around for those policies who may give you a better return than your issuer.

Though you do have to remember that there is then a purchaser out there to whom you are worth more dead than alive...

[Simpo Two]

Size Nine Elm said:

I sold on an endowment a number of years ago - there are brokers around for those policies who may give you a better return than your issuer.

Thanks - can you remember who you used?

If there are any experts reading this I can PM some values for a considered opinion.

[Size Nine Elm]

Simpo Two said:

Thanks - can you remember who you used?

Can't remember - it was 2001 I think when I cashed in. Just did an internet search and phoned for 2 or 3 quotes. They weren't that brilliant then, but a bit over the straight surrender value.

[Pappa Lurve]

I used to work in this market. It is actually pretty simple. Do a web search, find who pays the most and go for it. I am a bit out of date by now but most of the companies in this area are fine. As long as you get paid more than surrender value, who cares what the company is like!

Welcome to PM me with any company names and I can let you know if I ever dealt with them and if they were or some years back.

[martinmac]

Sold mine for the same reason a few years ago. Tried numerous companies and in the end Scottish Widows. who the policy was with gave me a much higher value.

[Simpo Two]

Thanks all. I don't need the money now, so my interest lies in trying to see which route will yield most when the policies end in 5 years. Doubtless there will be growth with SW if I leave them, and a terminal bonus as well. The hard part is trying to predict the final figure (given that funds are different and so you can't even apply a FTSE-based percentage to it) and conparing that with what might be achieved if I sold up and invested elsewhere.

In this case the offer I've had is about 11% more than the surrender value, but only 87% of the SV + terminal bonus. I also wonder if the growth is greater towards the end of the policy as commissions and costs are paid off.

The cynic in me also says that if a company is prepared to pay £x for a policy, then it must be worth more than £x because they are/will be making a profit. That makes me think that such sales are usually distress sales. Would that be a fair conclusion?