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Surrendering a Paid-up Endowment

(3 Posts)
KMorris Fri 29-Nov-13 13:43:57

Does anyone know roughly how much I'm likely to be charged in fees to surrender an endowment policy? Is it usually a percentage or fixed amount?

The endowment policy has 9 years left to run, but has been paid up (i.e. no longer being paid into) for the last 8 years as changed my mortgage.

Since it is paid up I'm working on the principal that I wouldn't be able to sell it on, so therefore am looking at surrendering it as the money in the account would be very useful right now as money is very tight.

Am waiting for the company to call me back regarding surrendering it, but just wondered if anyone knows anything about the kind of fees/charges I may end up paying in order to do so?

Thanks,
Kate

"Since it is paid up I'm working on the principal that I wouldn't be able to sell it on"

I don't thiat is correct. See for example www.apmm.org/selling_faq.php (that link as an example of someone saying paid up policies are tradeable, not a recommendation to go to them for a quote.)

"the money in the account would be very useful right now as money is very tight"

ok, but if you have an interest only mortgage, you need to be able to replace this endowment policy value with other savings by the time the mortgage ends. See debtcamel.co.uk/improve/sell/ for a general discussion of this.

This is a very specialist area - two good places to ask questions are boards.fool.co.uk/endowments-and-life-assurance-50083.aspx and forums.moneysavingexpert.com/forumdisplay.php?f=15

(I don't make any money from any links in my posts.)

KMorris Sun 15-Dec-13 22:33:39

Thanks for your advice. I now have a repayment mortgage hence why I made the endowment paid up.

Will look at those links.

Cheers.

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