Policy surrender

Policy surrender is one way of cashing in your endowment policy before it reaches its full term. Endowment policies were very popular in the eighties and early nineties – particularly as a means of mortgage repayment.

The idea was that rather than paying off the mortgage in instalments, regular payments were made into an endowment policy which, upon maturity, would yield a lump sum that would pay off the mortgage in one go and provide a tax free lump sum too.

There are people, who consider a policy surrender to pay off debts, save for a wedding or education fees or just raise capital. What many people do not realise is that policy surrender is only one option available to them when faced with an endowment policy that is no longer needed.

Endowment policy surrender

An endowment policy surrender involves returning your endowment policy back to the insurance company that issued it. Many people believe that an endowment policy surrender is the only way to get rid of a policy that’s unwanted or is simply no longer needed due to a change in financial circumstances.

However, a policy surrender is not the only option available. It is also possible to sell your endowment policy to a third party. aap is the UK’s largest buyer of endowment policies, and is able to offer in some cases up to 35% more than the surrender value of an endowment. For more details and to see what your endowment could be worth, see the page on selling an endowment policy.

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.