Financial
Endowments and Divorce
Divorce is a major reason people look to sell endowment policies, according
to latest research. Family law solicitors can advise their clients to
look at all sensible options when evaluating existing endowment policies
but it is up to the client to seek independent financial advice in order
to reach their own decision. See our article on Financial
Advisers and our article on
Endowments and Divorce.
Many people caught up in the distress of divorce tend to surrender (i.e cash in) their policies rather than consider selling them. After all, they have many stressful things to deal with during the divorce and financial arrangements. If you sell your policy through aap you will get more than the life office surrender value and this could make quite a difference to a family's finances when splitting up and money is in short supply.
Your endowment policy could be worth much more than you think. Here is one example of a leading endowment policy buyer:
Get a free quote from AAP, the UK's largest endowment policy buyer
Please visit the aap website to get a free no obligation quote for your endowment policy or phone 0800 093 3007.
Contact aap
Please visit Divorce
Endowments to get a free no obligation quote for your endowment
policy or phone 0800 093 3007.
AAP is the UK's biggest buyer of traded endowment policies and has been involved in the purchase of over £1 billion of with-profit endowments since 1968. AAP's recent customer survey has shown that divorce is one of the top reasons for selling endowment policies and with more than £400 million available, aap will value your with-profits policy completely free of charge and without obligation. All you need to have is a with-profits policy taken out by 2003 with a minimum surrender value of £5,000.
Selling your endowment policy through aap
If you sell your policy through aap you will get more than
the life office surrender value. Unlike some endowment buyers, aap acts
directly for a principal, so when an offer is made for your endowment
policy, there's no wait to find a buyer before aap can pay for it!
aap is authorised and regulated by the Financial Services Authority and is a member of the APMM (The Association of Policy Market Makers) which ensures the highest possible professional standards are maintained at all times.
When you sell your endowment policy through aap you are guaranteed to get more than the life office surrender value.
aap handles more than a quarter of a million inquiries each year from people looking to sell their endowment policies. They employ a team of more than 100 experienced professionals who can help you sell your endowment policy and answer all the questions you might have about the process of selling your endowment.
Selling your endowment policy - FAQs
How can I tell if my endowment policy can be sold?
Typically, only with-profits and whole of life endowment policies can be sold.
Endowments that are unit-linked or "unitised policies" cannot be given a long-term value because of the way they are set up.
Other factors that can affect a sale are the life company behind the endowment, the length of time a policy has been in force and its surrender value.
Generally, with-profits endowment policies which have been in force for at least seven years, with a surrender value of at least £1,500 can be sold on the market for more than their surrender value.
What information do I need to give to sell my endowment policy?
You must provide AAP with the following policy information. If
you don't have it all, your life company can provide it, or with your
written authority AAP can get it from your life company on your behalf
at no cost to you.
- Name of insurance company/life company
- Type of policy (with-profits/unit-linked)
- Policy number
- Start and maturity dates
- Basic sum assured
- Total bonuses declared
- Date to which bonuses are declared
- Current surrender value
- Gross premium payable and premium frequency (i.e. monthly etc)
- Name and address of life (lives) assured
How long will it take to get a quote?
As long as AAP have the correct information, you can get a valuation
for your policy within 24 to 48 hours.
Remember, if you do not have all the information to hand, AAP can get it from your life company on your behalf at no cost to you providing they have your written authority.
Does it matter if the policy is linked to a mortgage?
No.
Whether the policy is worth more than the outstanding loan, or if the
loan is being repaid in other ways it does not stop you from selling
your policy.
Who covers my premiums after the policy is sold?
Policies are generally bought by large institutional investors
who tend to hold the policies until they mature. After the policy is
sold you have no obligation to pay any more premiums.
When do I stop paying premiums?
You are generally responsible for paying premiums until the next
month after the agreement date. However, this information will typically
be covered by the offer letter you receive.
How long will it take to complete?
Once an offer letter is issued it must be signed before the transfer
procedure can begin. You then have to complete a simple transfer form
and supply some additional information and documentation.
There are no costs or charges attached to this, and the process should take about the same time as it would take to surrender the policy.
AAP is a Market Maker. What does that mean?
A Market Maker is a firm that stands ready to buy and sell a particular
stock on a regular and continuous basis. In this case it relates to
AAP acting on behalf of a principal in this sale. In other words if
you receive a cash offer, it will be made from available funds and you
will receive that cash directly the sale process goes through. A firm
who is not a Market Maker will have to find a buyer for your policy
first before you receive any funds - and this could mean that you have
to wait substantially longer for your money.
Are there any hidden charges I should know about?
When you receive an offer from AAP it is a cash offer and that
is the amount you will receive. There are no fees or commissions to
pay. There are some firms like auctioneers for example who will make
an offer but take a sizeable amount in commission payments.
Contact aap
Please visit Divorce
Endowments to get a free no obligation quote for your endowment
policy or phone 0800 093 3007.
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