Alternatives to Surrendering ::

Before Deciding To Surrender your Endowment with Profit Policy

Below are some alternatives to surrendering an endowment with profit policy:

1. You can always keep your endowment policy
   The financial markets change all the time and the performance of policies are most likely to change accordingly. Your endowment policy might under perform at the moment, but may recover in the right financial climate. Over the years with profit endowments have established a track record of very good returns compared with similar investments.
2. Loan-back
   If you have a cash flow problem you may want to consider a loan-back facility as offered by some life assurance companies. The security for the life company is your endowment policy. Of course you will have to pay interest on the loan. The loan is often repaid at maturity, when surrendering, at the point of selling or when a claim is maid. If you consider such an option it is worth you contacting your life office as different life offices will have different terms.
3. Make your endowment policy paid-up
   Basically, you can stop paying premiums for your endowment policy, providing that your policy’s fund value is sufficient. Charges and cost for the life cover will be deducted until the fund value of your endowment has become nil or maturity is reached. Obviously any surplus at maturity will be paid to you. Again, different life offices have different conditions, and you should always talk to your life company or seek professional advice before you consider discontinuing your premium payments.
4. Sell your endowment with profit policy
   A large proportion of endowment with profit policies are suitable for selling on rather than surrendering. Although life assurance companies are obliged to inform their policy holders about the option of selling their policy, a surprisingly large proportion of policies is still surrendered rather than sold. When you sell your endowment policy you should always get more than the surrender value offered by your life company. So, make sure when you offer your policy for sale that you have the most up to date surrender value from your life company to hand.