Surrendering Vs. Selling
When it became apparent that many policies would not cover the cost of the mortgage loan, policy holders sought alternative methods to repay their mortgage and dispose of their endowment policies. Whilst initially, the only method was to surrender (cancel) the policy with the life assurance company themselves, obtaining the surrender value calculated by them, a second hand market slowly developed, providing policyholders with much added value over their surrender values.
Now, many companies offer to buy the with profits endowment policy from the holder for more than the surrender value. This practice has created a thriving industry of endowment policy buyers. Members of the public can either contact these companies directly or they can use the services of a Traded Endowment Specialist.
Traded Endowment Specialists are companies that deal exclusively with Second Hand Endowment Policies and obtain offers from the entire market. They can also provide offers from some buyers that do not purchase directly from the public and will only offer through these Traded Endowment Specialists.
Not all purchase offers are the same as some buyers will purchase on a 'guaranteed-offer' basis whilst others will make initial offers that are subject to sale. These offers are not guaranteed as there is no definite purchaser in place. Yet other companies retain the right to revalue or cancel their offer at their discretion throughout the sale. A Traded Endowment Specialist can assist you in understanding the nature of the different offers you receive - making sure you don't end up with an offer that is not suitable for your circumstances.
Read more about this topic: Endowment Selling
Famous quotes containing the words surrendering and/or selling:
“We can escape the commonplace only by manipulating it, controlling it, thrusting it into our dreams or surrendering it to the free play of our subjectivity.”
—Raoul Vaneigem (b. 1934)
“I concluded that I was skilled, however poorly, at only one thing: marriage. And so I set about the business of selling myself and two children to some unsuspecting man who might think me a desirable second-hand mate, a man of good means and disposition willing to support another man’s children in some semblance of the style to which they were accustomed. My heart was not in the chase, but I was tired and there was no alternative. I could not afford freedom.”
—Barbara Howar (b. 1934)