Dont surrender old with-profits savings plans, trade endowments on the TEP market
Dont surrender old with-profits savings plans, trade endowments on the TEP market
2010/06/04 by ukcitymedia.co.uk about : Endowments - 0 Comments - 293 words
Traded Endowment Policies
Due to high charges by life assurance companies for early surrender endowment policies there exists a market for second hand with-profits policies in which traded endowment brokers find best deals from purchasing market makers.
Those that hold and wish to sell endowment policies have the option to trade policies in before the end of the contract. Policy holders are able to get improved offers for the policy they hold via competitive bids from the TEP brokers - traded endowment brokers.
Via a broker, TEP market makers, (traded endowment market makers) will assess the value of your endowment - the endowment surrender value. Then, if you decide to cash in endowment policy, the market maker takes on the monthly payments until the policy matures or they resell to another individual on the open market.
People who are changing their mortgage, going through divorce, need more capital or who predict a fall in the profit of their endowment may have a requirement to sell a with-profits endowment or life assurance policy.
Traded Endowment Policies or TEPs are second hand with-profits endowment policies legally assigned to new owners who pay the purchase price and take over the payment of future premiums. The life assurance cover remains on the original life/lives assured, but all policy benefits on maturity or, an earlier life assurance payout, are the property of the new owner.
As TEPs are purchased mid-term the policy already has a guaranteed value made up of the 'Basic Sum Assured' and 'Bonuses Attaching' and the initial charges have all been paid by the original policyholder.
For more information on cashing in endowment policies check ukcitymedia pages. There is a link to the traded endowments section in the left nav bar, at the bottom of the home page.
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