What is an Endowment Policy?

An endowment policy is a savings plan combined with an element of life insurance. It was a popular means of mortgage repayment throughout the eighties and nineties. Many people are considering surrendering them to raise capital.

Different Types of Endowment Policy

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

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.
With-profits endowment policy. A with-profits endowment policy accumulates regular bonuses based on the performance of the Life Company’s with-profits fund.

Endowment Policy Surrender Options

Endowment policy surrender may seem like your only option if you wish to part with your endowment policy. Surrendering your endowment policy back to the insurance company that sold it to you will allow you to reclaim some of the amount that you’ve invested in it, however, you will be unlikely to recoup as much this way as you would if your endowment policy was suitable for selling and you sold your endowment policy.

If you decide to sell your endowment policy on to a third party, be aware that aap is the UK’s leading specialist in endowment buying, and can deliver up to 35% more than the surrender value of your endowment policy. For more information, see the Selling Your Endowment Policy page.

Let's value your policy right now

To find out if your policy is suitable for sale, please follow the steps below:

1: Please select the relevant life company:

This is the life office that you took your policy out with originally. Many life companies have merged in recent times, so please check your policy document to verify you have entered the correct name.

2: Please enter the year your policy started:

This is the start date of the policy. Also known as the effective date. Normally the date your first premium was due to be paid.