What to do when endowment policy matures?

Question

I have two endowment policies which mature later this year.

They were attached to two properties and the morgages were paid off years ago. I kept the endowment policies going as part of my retirement.

What is the most profitable way to cash in these policies, is it possible to shop arround for the best price, or do I have to accept the offer from the present provider

Answer 1

You can sell them on the second-hand market ..ask your financial adviser. You dont need to accept an offer from your present provider at all

Answer 2

Don't tell your children first of all .

Yes you can shop around .

Or you can reinvest .

Ask your bank manager advice .

or write to the Sunday Times financial section and ask for their advice.

But what   ever you do don't  tell your kids

Answer 3

When these policies get to maturity you will automatically get a cheque from the insurer.  As you have held the policy to maturity you will get the maximum potential value out of your endowment.  This is the most profitable way.

Selling an endowment is used when people are looking to surrender the policy early rather than at maturity. Surrendering a policy is unlikely to produce a return reflecting the policy's full potential value (at maturity), if only because the terminal bonus paid on maturity, while not guaranteed, usually represents a large chunk of the policy's return. In fact, policies surrendered early may not even reflect the full value of funds invested owing to high initial charges. The investor buying the policy is looking to hold the policy to maturity to get the maximum out of it which should be higher than you would have been offered at surrender from the insurer.

Answer 4

You can offer them for sale but I think you have to do it through an independent financial adviser.  You could also ask  the adviser about using them to buy an annuity or invest in a private pension if that's still your agenda.