About
Selling Endowments Traded Endowments
About Selling Endowments Traded Endowments
If
you are looking to surrender your endowment policy, About
Selling Endowments can offer you an online valuation for your
policy in minutes, from 10 regulated Market Makers.
A
traded endowment policy, or "TEP", is a with-profits
endowment policy that has been sold by the original policyholder
to another investor before the end of the agreed term of the
policy. These policies are legally assigned to the new owner
who continues to pay the premiums. They are also known as
'second hand endowments'.
The
traded endowment market is expanding, largely due to the increase
in public awareness and education.
In
the majority of cases a better surrender value can be obtained
on the traded endowment market, compared to that offered by
a life assurance company. The difference is typically 15%
but can be as high as 40%.
About
Selling Endowments (UK)
One of the reasons why life assurance companies appear to
offer poor value is because the policyholder incurs "early
surrender penalties", which are effectively charges deducted
from the current value of the investment. These additional
costs are incurred because the charges levied by the life
assurance companies are based on the assumption that the policyholder
will maintain the policy for the agreed term. A high proportion
of the company's costs are incurred when the policy is first
set up, though the charges to the policyholder are then spread
over the life of the policy.
Consequently,
selling a policy via the traded endowment market is an attractive
solution for policyholders.
Each
policy is individual and the amount you will receive will
depend on the start date, the maturity date and the surrender
value at the time you obtain a quote.
For
further information on About Selling Endowments Traded Endowments
visit the About Selling Endowments website.
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