Endowment policy money may help reduce the debt-stress of Britons

Publication date | 05/02/2010

Britons who are becoming increasingly concerned by their financial situation may have had to take time of work because of the stress of debt.

A new report by Aviva UK Health has found that almost a quarter of businesses believe that the current economic climate has impacted upon stress levels and led to a rise in long-term absence.

However, those who are in debt and have been off work with stress may want to resolve their situation, particularly if they are not receiving as much income as they previously were because of their time away from the office.

Chris Radford, chief executive officer of aap, the UK's biggest buyer of endowment policies, said some of its customers had decided to sell their underperforming endowment policies to help clear their debt because of the stress that their borrowings were causing.

Britons are worried about their levels of debt

The Aviva UK Health survey discovered that more than 60 per cent of businesses believe that long-term sickness rates are a concern.

Stress caused from debt can impact upon employee motivation and productivity, as well as their wider wellbeing.

However, despite the stress that debt can bring, 14 per cent of employers think it is not their position to prevent an employee going off sick with stress.

Many firms which enjoy low absence rates believe this is because of their efforts in managing stress.

Britons with accumulating debts may find the stress impacts upon their family life, not only emotionally but also by restraining coffers, limiting the opportunities a family has.

Selling endowments could help cut down debt - and stress

Mr Radford, from aap, said some of its customers had decided to sell their unwanted endowments so they could clear their debt and allow their income to be put towards other expenses, rather than just servicing credit card balances.

He added that should aap make an offer to purchase an endowment policy, it will always pay more than the surrender value offered by the insurance company.

Reasons to sell your endowment policy