Endowment surrender value

If you have an endowment policy that you took out when you got a mortgage for a new house what could be its current endowment surrender value. You would be paying monthly premiums into the endowment usually for the same length of time you have your mortgage. At the end you hope that the surrender value of the endowment policy would be at least equal to if not greater than your mortgage.

Should you be thinking of cashing in, when Standard Life released it's windfalls to the customers who had with profits endowment policies many chose to surrender their policies. In essence taking the money and run as the performance of the policies were not as expected.

An endowments surrender value

You have several options of what you can do with your policy. The first option that most people know about is surrendering an endowment policy back to the company they originally took it out with. With this option it is unlikely that you will get anywhere near the full value. If you chose this route you would need to contact your insurance company for a quote for the surrender value.

There is an alternative option to cashing in your policy and that is to sell it on the second hand endowments market. Companies deal in second hand policies and there is a demand for good quality second hand endowment policy surrender. The reason there is such a demand is because an endowment can be bought by a third party and then used as an investment hoping the value will grow over time or even sell it on for a higher value.

It is claimed by some policy buyers and brokers that they can get you almost a third more by selling your policy on the second hand market. More realistically you will be looking at half as much as they claim although this is still usually greater than the surrender value of the endowment policy.

You could also turn your endowment policy into a paid up one, this means that you will stop paying premiums into the policy. There are usually charges made by your insurance company if you choose this option. If your premiums are very high and you do not think that what you are paying into the policy will be worth it when it matures you can choose the paid-up option and keep the policy till it matures in the hope that it will gain value.