The Association of Policy Market Makers is today cautioning that endowment policyholders are missing out every single day by cashing in their policies with life offices.
Brian Goldstein, chairman of the APMM, says that policyholders who surrender their policy would end up missing out financially.
Goldstein says: “Last year, an average of around 180,000 people surrendered their endowment policy each quarter. Over a year this totalled a collective loss of more than 90million.
“Currently, policyholders who sell their endowment rather than surrender will get, on average, 10 to 15% more money.
“Increased demand for traded endowment policies both from within the UK and from Germany means that many more policyholders can sell their policies and they can get more money than they used to. In some instances, policyholders could see as much as 30% more.”
Goldstein adds that policyholders should always seek professional advice before disposing of their policy as there are different options available that will suit different individuals dependent on their circumstances, such as borrowing against the policy, making the policy ‘paid-up’ i.e. no longer continuing to pay premiums, taking a premium holiday where the policy allows them to do this, and selling it to a third party, for example a market maker.