Stopping Endowment Policies:

 * Click Here to open up the "selling my endowment" valuation form

A question that is often asked is "what happens if I stop my endowment policy?"

The answer is that the first thing will be that the direct debit for the monthly (or annual) premiums cease to come out of your bank account, and at about the same time, the life assurance company will write to you to warn you of the course of action and its outcome.

When premiums are stopped the policy can only maintain its life assurance element by "dipping in to" the policy fund and financing them that way.

This means that with no new premiums going in, and the fund being "milked" to maintain the life element, there is a real risk that the policy will go in to reverse (in terms of its investment value).

If the policies fund is milked dry, then the life assurance ceases.

Before that time, though, the chances are that the endowment policy will have been surrendered or sold (if it is a viable investment for the traded endowment policy buyers and dealers).

If the endowment policy is surrendered then the policy holder receives the cash surrender value, the life assurance ceases and that is the end of that.

If the endowment policy is sold on the traded endowment policy market (TEP Market) then the new owner maintains the premiums, the life assurance continues, but if the "life assured" dies (you) the new endowment policy owner gets the life assurance paid to them, and not your beneficiaries or estate.

Obviously, when the policy matures in the future, the new owner gets all the cash.

Endowment policies that are selling are the "with profits" type of endowment that have been running for quite a number of years, with all endowment premiums paid to date.

 

 

 

The information on this web site is intended as "information only" and should not be taken as "advice".
If you are unsure about what to do, if anything, about your endowment policy, you should consider taking advice from an independent financial adviser who is regulated by the Financial Services Authority
 

Selling endowments is the place to sell your endowment policies

Below are pages that give a little background information on the endowment policies, including access to an endowment valuation form, or you can simply use the link above to go straight there.

• Axa Equity & Law
• Axa Sun Life
• Britannia Life
• Britannic Assurance
• Canada Life
• Century Life (NEL Britannia)
• Clerical Medical
• Colonial Mutual
• Commercial Union
• Co-operative
• Crusader Insurance
• Eagle Star
• Ecclesiastical Insurance Group,
• Friends Provident
• General Accident
• Guardian Financial
• Imperial Life (now Lincoln),
• Irish Life,
• Legal & General
• Life Association of Scotland,
• Liverpool Victoria
• London & Manchester
• London Life
• MGM,
• National Farmers Union Mutual,
• National Mutual Life,
• National Mutual Life of Australasia,
• National Provident Institution,
• Norwich Union
• Pearl Assurance
• Phoenix Assurance,
• Provident Life,
• Provident Mutual
• Provincial Life,
• Prudential
• Refuge Assurance,
• Royal Life
• Royal Liver,
• Royal London
• Royal National Pension Fund For Nurses,
• Scottish Amicable
• Scottish Equitable
• Scottish Friendly,
• Scottish Life,
• Scottish Mutual,
• Scottish Provident
• Scottish Widows
• Standard Life
• Sun Alliance,
• Sun Life Of Canada
• Swiss Life
• Teachers Provident,
• Tunbridge Wells (now Childrens Mutual),
• UK Provident,
• United Friendly,
• Wesleyan Assurance,
• Windsor Life (Gresham)