Endowment Policy Sell or Cash in?

T

TitanTim

Elite
Hi all.

I have an old Incremental Premium Endowment Policy with profits and sum assured which I set up back in 1990, it was originally with Norwich Union and now with Aviva. I would like to cash this in as would like free up some cash. Doing a little reading it seems I might be better selling a with profits policy rather than cashing it in with Aviva. I'm guessing if I sold the policy to a trader then they keep it going but under their name and reap the future profits which is fair doos. Has anyone any experience of selling a policy rather than cashing in?

I'm looking at this website with the intention of getting some quotes, http://www.sellendowments.co.uk/

Any advice/pitfalls gratefully received,

Cheers,

Tim.
 
http://www.money.co.uk/selling-endowments/how-to-cash-in-your-endowment-policy.htm
https://www.moneyadviceservice.org.uk/en/articles/ending-your-with-profits-policy-early
I think it would all depend on the money you would receive and what you want to do with it. Spare cash at the moment is a virtual waste of time due to low interest rates. If however you have debts you would best to use any spare money to pay of any debts / finance.
 
raymond.harper said:
http://www.money.co.uk/selling-endowments/how-to-cash-in-your-endowment-policy.htm
https://www.moneyadviceservice.org.uk/en/articles/ending-your-with-profits-policy-early
I think it would all depend on the money you would receive and what you want to do with it. Spare cash at the moment is a virtual waste of time due to low interest rates. If however you have debts you would best to use any spare money to pay of any debts / finance.
Click to expand...

Thanks for the links, some useful reading :thumbsup:

I've sent off some details with a view to selling the policy so will see what quotes I get back.

Tim.
 
Hi Tim,
I'm not an expert, but I had a similar policy to yours that I took out in 1990 and matured in 2015 (i.e 25 years). It was originally Commercial Union then Norwich Union and finally Aviva. I made the decision to see it out til the end for two reasons, firstly the final bonus on maturity (turned out not huge), and secondly with my policy there was a 'promise to policy holders', - a bonus for keeping it to the end so long as certain conditions were met (like paying every month), ....worth checking if yours is eligible for the latter.
I did the maths and I was £400- £500 better off by keeping it, but of course yours may be different.
It's worth checking with Aviva themselves as to the value if you cash in now to compare to the selling option, and I'm sure if your close to the maturity date they can give you a fairly accurate forecast so you can make an informed decision.
Starting to bore myself now so I'll stop going on.....Hope this helps. Tony
 
Tim,

I am the founder of the Norwich Union Policyholder's Action Group (NUPAG) when Aviva (Norwich Union) commenced the Reattribution in 2007 of the CULAC and CGNU With-Profits funds. If you didn't accept the reattribution PIP in 2009, then you should still be in line for further distributions from your policy.

If you'd like to send me a PM with some details of your policy then I can suggest what I would do if I were in your circumstances.
 
Tonyh2 said:
Hi Tim,
I'm not an expert, but I had a similar policy to yours that I took out in 1990 and matured in 2015 (i.e 25 years). It was originally Commercial Union then Norwich Union and finally Aviva. I made the decision to see it out til the end for two reasons, firstly the final bonus on maturity (turned out not huge), and secondly with my policy there was a 'promise to policy holders', - a bonus for keeping it to the end so long as certain conditions were met (like paying every month), ....worth checking if yours is eligible for the latter.
I did the maths and I was £400- £500 better off by keeping it, but of course yours may be different.
It's worth checking with Aviva themselves as to the value if you cash in now to compare to the selling option, and I'm sure if your close to the maturity date they can give you a fairly accurate forecast so you can make an informed decision.
Starting to bore myself now so I'll stop going on.....Hope this helps. Tony
Click to expand...

Hi Tony,

Thats very useful many thanks, my Policy doesn't mature until 2030 :o so still a fair way to go on it yet, I haven't contacted Aviva as yet but I have an idea from them what the Policy is worth currently, I will see what I get back from contacting sellendowments and decide if its worth selling the Policy or better hanging onto it.

Cheers,

Tim.
 
exdos said:
Tim,

I am the founder of the Norwich Union Policyholder's Action Group (NUPAG) when Aviva (Norwich Union) commenced the Reattribution in 2007 of the CULAC and CGNU With-Profits funds. If you didn't accept the reattribution PIP in 2009, then you should still be in line for further distributions from your policy.

If you'd like to send me a PM with some details of your policy then I can suggest what I would do if I were in your circumstances.
Click to expand...

Cheers exdos, PM sent :)

Tim.
 
TitanTim said:
woozzle said:
hi Tim.

Nothing to do with endowments but was that you in your z3 yesterday afternoon on the M5. :thumbsup:
Click to expand...

Afraid not but I better check the Z3 is still in the garage :?

Tim.
Click to expand...

Blimey another z3 going around with a red roof 8)
 
Bit if an update and thanks for the previous replies,

Contacted a company that deals with the selling of endowments policies, they scour the market on your behalf and get the best offer for buying your policy and then send the offer to you, there is no fee for this service as the company gets paid by the buyer of your policy. In my own case I was offered over 700 quid more than if I had cashed the policy in with the original policy provider. You then deal with the purchasers solicitors. The only onerous thing is you have to get a few documents copied and certified, e.g. passport etc to prove who you are. It then takes a couple of weeks for the buyers solicitors to sort the paperwork out and then the agreed value is paid into your bank or whatever. I'm just waiting on this now but overall a simple easy process.

Tim.
 
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