Endowment policy. What are the benefits?

Buying and selling an edowment policy.

First of all we need to know what an endowment policy is. Legally it is a life insurance contract. The idea is to be paid a lump sum after the specified time. This moment is called the “maturity” of the endowment policy. It can take ten years or more depending on each contract. The idea is to have an insurance policy but for some time. This is the reason because some consider endowment policy to be an investment. The lump sum will be pay after the time stipulated in the contract or if the insured one dies.

The endowment policy is designed to terminate after some time.

When choosing an endowment policy you have to consider some other characteristics of the contract. Now we are going to talk about the different kind of endowment policies.

When selling an endowment policy you need to consider how much money are you going to lose if you finish it earlier? But it is also true that sometimes you can lose money by paying something that will not produce so many benefits. These are conditions to be take care of before contracting an endowment policy.

The process to sell an endowment policy varies depending on the company. The most common requirement is an amount of time running the policy. With this they can earn some money even when you cancel it.

A traditional with profits endowment policy consists in an amount of money to be paid that can be increased through periodic bonuses.

The full endowment is another variety where the sums are higher because of the valor of the sum and the death benefits are equal.

The low cost endowment pays little if the ensured dies or is diagnosed a critical illness.

Finally the traded endowments. These are policies that the investors buy to ensured ones. The market for endowments policies is big. You can earn more money from selling it that the sum to be paid in the future.

The investor (buyer of the endowment policy) now gets all the benefits and will take care of the premiums. But when the original ensured dies HE will get the death benefits. The original ensured will have to think about getting a life ensure or what to do about the future.

The principal characteristic of endowment policy is the growth. With time the policy should grow to produce a lump sum large enough to repay the loan in full. All it takes is time.

The financial assistance is needed in order to analyze your economic situation and what steps to take. The possibility of contracting an endowment policy is tempting but you need to know if you are going to be able to reach the maturity. Just then the policy is a real deal. There are lots of people who earn less money because they sell the policy before the maturity time. Think carefully. Some causes to cancel an endowment policy may be divorce, or moving aboard or school fees. All of it influences a financial decision.

In the net you can find pages dedicated exclusively to the market of endowment policies. The boom of selling policies is getting higher. Lots of users choose who to sell the endowment policy by checking the price in the market. Because the price offered from the company to re buy your policy may be smaller.

In the web page http://www.policyplus.com/index.php you can find lots of tips and stories about people who had traded their policies. The trade of endowment policies is a new way of making investments. You can see how much money you can earn if used correctly by analyzing the offers.

Another page that offers assistance and dedicates to buy policies can be found at http://www.1stpolicy.co.uk/. You will find statistics and customer service with great speed and resolution capabilities. There you can be informed about your next step with your endowment policy. The FIRM offer that they use claims to be one of the best paid in the market of traded policies.

To another type of consult you may consider checking http://www.endowmentuk.com/

Where you can learn how much of a success may have your claim to the endowment policy insurance company.

By the end of the term the endowment policy pays up to the sum accorded plus the annual and terminal bonuses.

One of the principal causes for selling the endowment policy is a bad performance. Others may need the money at the moment. Each cause has to be fully considered before selling because a mistake could make a big difference in terms of money.

The market of buying endowment policies is full of brokers that buy this kind of endowment: traded endowment policy or the called secondhand policies.

The with-profit policy is the one that the market of traded endowment policies works with. The quotes obtained for selling the policy in the market and not to you own company should be at least a ten or fifteen per cent higher.

If you are interested in selling your endowment policy is important to know who to trust in your exchange. For this matter you need to see thoroughly all the options in the market. For instance, in the United Kingdom there are two big groups. The first ones are the Members of the Association of Policy Market Makers. Here you can find about the list and the offers made by each one of the makers.

Absolute Assigned Policies Limited. The official web page can be found at http://www.aap.co.uk/ and you can find financial advertisement, articles related to the company and frequented asked questions as well as the study of different cases that the company has confronted.

PolicyPlus International Plc is the most renowned. While searching “endowment policy” on the net you will come across PolicyPlus hundreds of times. The web page is http://www.policyplus.com/index.php. Here you will find customer comments, case analysis, tips for investment and to sell your policy.

1st Policy Company Limited is the second one with most appearances on Google. The web site can be found at http://www.1stpolicy.co.uk/. With just a few clicks you can have a Policy Valuation on line. The tips and customer comments are also present as well as information to back up the company and their actions in the recent years. The emphasis of this is normal when thinking about dealing with money and investment so you need to keep an eye on this kind of things.

Foster & Cranfield Auctioneers is a member of the Association of Policy Market Markers. When surfing through their web page at http://www.foster-and-cranfield.co.uk/.

Here you learn about an original way of dealing with endowment policies. They perform auctions. After valuing your endowment policy you can earn more money than expecting for the surrender value.

Surrenda-Link Ltd and Neville James Ltd are the last members of the Association. Their web pages are http://www.surrendalink.co.uk/ and http://www.neville-james.co.uk/ respectively.

The other group is a more reduced one that it is related with financial advisors and financial groups. To know about them and their offers you need to surf through the web by looking for endowment policies buyers.

Knowing these two mechanisms you can choose who and when to sell your endowment policy. Always remember to consult a financial advisor in order to get your doubts settled before making any rush decision.

See you next time.

Juan Martínez.