You will then get quotes from traded endowment specialists. These quotes let you know how much they can pay you for your policy. The offers expire after a set time, e. What information you do you need to give? Compare the amount offered by each company to the surrender value your original provider gave you. Some TEP companies may increase their offer if you let them know another company offered you more. Make sure the quotes are more than the surrender value, and check which one that gives you the most money for your endowment.
You can then decide if you should sell your endowment to the endowment specialist. How much does it cost to sell? Let the company know you have accepted their offer and send back any paperwork they request. They then contact your policy provider to transfer your endowment.
You will be paid by cheque or bank transfer once they have completed the paperwork and the policy is no longer in your name. Your TEP buyer will let you know the date you can stop making monthly payments to your endowment policy. Three weeks, on average. But how long it takes depends on the company that buys it.
Brokers act as a middleman to sell your policy directly to an investor. This takes longer because you have to wait until they find someone who wants to buy it.
Other companies pay you for your policy immediately. These companies hold a range of different policies that they can sell to investors later. Saving For College. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.
I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Insurance Life Insurance. Key Takeaways Endowment life insurance policies, by coupling term life insurance with a savings program, offer a lump sum payment at maturity. They're sometimes marketed as college savings plans—consumers must read the fine print before deciding if this is how they want to save for their children's education. Other college savings options like prepaid tuition and plans may offer benefits not available with endowment life insurance.
Why choose endowment life insurance? Are they just for saving for college? Do options exist that are explicitly for saving for college? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
Related Articles. Partner Links. Related Terms A Guide to Plan A plan is a tax-advantaged account that can be used to pay for qualified education costs, including college, K, and apprenticeship programs. Not all endowments are equal, however, and the second-hand market is interested only in with-profits and whole-of-life policies, so if yours is a unit-linked endowment this option wouldn't be open to you.
Also, the policy must have been running for either a third of its entire term or a minimum of five years - at and-a-half years old your endowment almost certainly satisfies this requirement.
Call Halifax for a surrender quotation and then contact the Association of Policy Market Makers APMM , the regulated industry association for traded endowments for a free endowment valuation. You can then decide whether to accept any offer the APMM makes. One last thing to note is that the resale endowment market is not currently regulated by the Monetary Authority of Singapore MAS … yet. As such, this leaves resale policyholders in a bit of a vulnerable state.
This article was first published in SingSaver. Marissa Saini. Jan 04,
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