Surrendering Endowment

Surrendering Endowment

Surrendering an endowment policy is an option provided by most issuing insurance companies. It allows you to terminate your policy early, allowing a cash return but at a cost. The cost of surrendering depends on the age of the policy at the surrender date, market conditions and company policy. Some companies are more generous than others but you might not get back what you invested.

Due to the uncompetitive terms of many insurance companies' surrender policies, the practice of selling an endowment policy to another investor became popular. Selling an endowment can yield a higher payout than surrendering endowment policies, and many broker companies allow the matching up of buyers and sellers in the endowment policy market. Whether you can get a quote from somebody wanting to buy your endowment will depend on the policy age, the issuing company, and other details specific to the policy.