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Benefits of selling endowments
- Selling is generally a better proposition than surrender because of the difference in price between the surrender value and the value of the policy in the market.
- Over £7.8bn policies are surrendered each year. Of these about £3.3bn are with-profits policies, approximately 1/3 of which could be sold for more than the surrender value.
- Policies that cannot be sold either have not run for long enough or the market price is too close to the surrender value to make selling worthwhile.
- The average increase policyholders can expect if they sell is 15%. That works out at £1,500 extra on an average policy value of £10,000. Some sellers can gain up to 30% more.
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