Why would an endowment policy holder say "
I want to
surrender my endowment policy" ?
There are a number of
reasons:
1. The endowment policy company has sent them a letter telling them
that their endowment policy is not on target to pay of their mortgage.
This, I'm sure would make any policy holder consider taking some form of
action, however it is vitally important that if the endowment policy is
going to be sold or surrendered another method of repaying the mortgage
is put in place, and if necessary the life cover is also replaced.
2. The "credit crunch" is hitting hard and the cost of servicing
ongoing loans and credit card balances is becoming hard to meet each
month. Obviously cashing in a long term investment in order to reduce
the financial pressure is not a very good solution, but if there is
nothing else to choose from, it is easy to see why some people go this
route.
3. The policy was set up on a joint basis with a partner or spouse,
and unfortunately they have decided to part and go their separate ways.
The policy could be assigned to only one of the lives assured, and
consequently continued, however constantly seeing that other persons
name in your filing system can be a bit too heart breaking for some.
4. Emergency cash is needed and surrendering the endowment policies
is a quick and easy way of obtaining it.
5. Retirement looms and the reduced income makes the regular monthly
premiums unaffordable, though endowment policies are not usually set up
to run in to retirement, and anyone that ahs one that does and is
assigned to the mortgage, could have a case for "miss selling".
6. The media has influenced the decision with stories like "My
endowment wont pay off my mortgage"
7. The endowment policy is no longer needed for the purpose that it
was set up for.
These are just a few of the reasons why people in the uk, and others
that have now emigrated abroad, decide that surrendering their
endowments is what they want to do, whether that is a right course of
action or not.
If you are surrendering your endowment policies, are they on the list
below ? If so you may get more money by selling them instead and the
link on the left hand menu can be used to get a valuation of your policy
as a going concern, rather than simply surrendering.
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Above the list of endowment policies that can be sold to second hand
endowment policy dealers as an alternative to surrendering endowment
policies
"Selling endowment policies is
no more complicated than surrendering endowment policies"
