Cash endowment
Getting cash for your endowment policy can seem like a complicated business. If you’re thinking about surrendering your endowment in order to raise cash, there are a few important points to bear in mind:
If you have to cash in your endowment, choose the method that will give you the greatest return. While the most obvious option would seem to be to simply surrender the policy back to the company that sold it to you, this option may not be the best course of action.
Another way to cash in your endowment is to sell it on to a third party. This option is typically the most beneficial, and can sometimes even top the surrender cash value by as much as 35%.
Cashing in your endowment
If you have decided to dispose of your endowment policy then cashing in your endowment policy can boost your finances if you want to realise some of your assets or simply don’t need the policy anymore. However, the amount of cash you receive for your endowment varies greatly depending on the method you choose to cash it in.
So, if you are considering surrender as a means to cash in an endowment, wait. If you want to make the most of your policy then selling could offer a higher return than surrendering it.
Selling your endowment on to a third party instead of surrendering can be a more attractive option. For more information on aap and how to maximise the value of your endowment policy when you cash it in, Find out more about aap endowment buying.