How Do I Sell My Endowment Policy?

Is your endowment policy a traditional one with-profits or whole-of-life with-profits policy? Has an established insurance company issued the same to you? Is its surrender value $2000 or more? Have you held it for longer than one third of its full term? If your answer to all these questions is affirmative, you can certainly sell your endowment policy.

Basic Requirements

Before you go ahead and contact anyone to sell your endowment policy, you must be ready with some basic documents. It may include a copy of your policy schedule, your last bonus notice etc. Moreover, if you had associated this policy to a mortgage with a bank or building society, get ready with all the previous deeds of agreement. Last, but not the least, if you have even a slightest doubt regarding your tax position, it is always prudent to consult an independent financial adviser.

Filling the quote request form

If you are ready with all the basic documents, you can go ahead and contact a TEP market maker firm. The best way to do that is through their websites. This way, you can get quotes without any charge or commitment. All you need to do is to fill in the quote request form with complete detail of the policy you want to sell and submit the same through email.

Receiving and accepting quotes

The market maker will do an initial verification of details of your policy in order to check whether or not it meets all the basic requirements. This initial verification takes a few days. If all goes well, the market maker will then offer you the first quote. This first quote will be valid for a fortnight. However, you do not need to hurry and accept this first offer. It is better if you wait for a few days (14 days to be precise) and the firm will revalue your policy. Now that you have got a better offer, you can accept this.

Conclude

You will be provided an acceptance slip with the quote. If you want to proceed with the sale, you just need to sign this acceptance slip and return the same to the market maker. In a few days, you will be issued a contract note that binds both the parties. Now, a cheque for the agreed amount will be sent to you. However, you may have to wait for a week to receive that cheque.

You do not need to pay any cost on the sale. If there is any cost, your buyer will bear the same.