Indebted 'should not cash endowment policies'

17 July 2007 / by None
Britons who are considering cashing in on their endowment policies in order to repay debt are being urged to look at other options.

The director of financial advice firm Baronworth Investment Services, Colin Jackson, explained there are better options available to people in this situation.

Cashing in on an endowment policy before the end of the contract will mean the policyholder will receive a lower amount than if it only paid out at the final point.

Traded endowment policies allow the holders to sell their policy in order to get more money out of the deal.

"Hopefully nowadays people realise that there's a better option [than] surrendering," he commented, adding that the most sensible route is to sell an unwanted life assurance contract.

And those who choose to sell their policy should also go about it in the smartest way in order to get the best returns, Mr Jackson added.

"To put it in a nutshell: if you have the policy to sell, the most sensible course is to go to as many potential buyers as you can," he said.

Find out more about selling endowment

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