An endowment policy is a form of savings plan which in many cases incorporates life insurance. Popular throughout the eighties and nineties, many people were sold these endowment policies to run concurrently throughout the term of their interest-only mortgages, as a means of repaying the capital lump sum.

Different Types of Endowment Policies

An endowment policy can be set up in a number of different ways, including:

Generally, only with-profits policies will be of interest to endowment buyers.

• Non-profit endowment policy . This kind of policy guarantees a fixed sum when the policy comes to maturity. Non-profit endowment policies are less common than other types of endowment policy. These policies cannot normally be traded. 
• With-profits endowment policy . A with-profits endowment policy accumulates regular bonuses based on the performance of the life company’s with-profits fund. These policies can normally be traded. 
• Unit linked endowment policy. Unlike traditional with profits endowments, where once bonuses are declared they cannot be taken away, unit-linked endowment policies provide no guarantees as to what growth will be achieved. These policies are used by the life company to invest as units on the stock market and are therefore subject to varying results depending on the economic outlook and performance. Currently, these types of endowment policies are not able to be traded.
• Whole of Life endowment policy. An extended endowment plan aimed at covering a life for its entirety. These policies cannot normally be traded.

When it comes to endowment selling, and If you’re thinking of disposing of your endowment policy don't surrender it before talking to us first, aap can help you! Our service is free of all charges, so you've everything to gain and nothing to lose. You could be receiving thousands more.

To get a free valuation for your endowment policy please click here , or call one of our policy valuation team members on 0845 073 1998.