A worthy trade

Professional Adviser
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Although selling an endowment policy should be viewed as a last resort, in most cases clients will yield a better return than surrendering back to the life office, writes Lee Portnoi

Over the past decade the number of people cashing in their endowment policies prior to maturity has reached new heights. One result has been the expansion of the traded endowment policy (TEP) market, which buys policies and then trades them on the open market. However, many policies suitable for re-sale on the TEP market are still being surrendered back to life companies because policyholders are unaware they could get an average of 15% more by selling their endowment to a market maker. It is estimated that every week more than 1,000 people surrender their endowment policy back to t...

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