The FSA's proposals addressed to life companies this week have been applauded by Brian Goldstei...
The FSA's proposals addressed to life companies this week have been applauded by Brian Goldstein, managing director of Policy Portfolio, the founder of the Tep market.
The proposals suggest life companies must advise policyholders planning to surrender their endowments that they may be able to sell their policies to Tep market makers for a sum greater than the surrender value.
Goldstein explained: "This is good news for policyholders and investor alike. Each year thousands of policy holders decide to cash in their policies - for many reasons including divorce, redundancy etc - and lose millions by not selling to a market maker. Policyholders can expect to receive, on average, 15% more than the surrender value for suitable policies and sometimes up to 50% more. Much needed extra money for those who have to cash in their endowments."
Goldstein added: "Of course this means that more policies will be available for investors. There is an increasing demand for Teps which are a key part of many investors' portfolios as they suit the needs of those requiring a low risk, flexible investment, providing safety and security accompanied by growth with the potential for high returns."
A free policy valuation as well as a free guide to cashing in endowments or investing in Teps is available from Policy Portfolio on 0208 343 4567 or visit www.policyportfolio.co.uk
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