From: "Buster" 
Newsgroups: uk.finance
Subject: Re: Selling/Cancelling endowment early
Date: Wed, 28 Apr 2004 19:21:51 +0100


"Robin Graham"  wrote in message
news:c6op50$40$1@sparta.btinternet.com...
>
> "Paul W"  wrote in message
> news:c6nsr3$3ig$1@hercules.btinternet.com...
> > Got a 25 year endowment which is now about half way through...
> >
> > Originally, it was going to be used as part of an endowment mortgage.
> Wisely
> > we're not on full replayment.
> >
> > I've kept the endowment going (for now). Whats the best plan with this
> > bearing in mind the returns are'nt great at the moment? And I could do
> with
> > the cash :-)
> >
> > Is it best to cancel or sell ? If so whats the best place to do this?
> >
> > Or is it still worth paying it for the next 12 years and getting a lump
> sum
> > then ?
> >
> >
>
> This sort of question is often asked. However, the OP never mentions which
> fund they are invested in. Frequently, no doubt, the policy is a
> with-profits one, but is yours? And which company? If it's with-profits
the
> chances of different companies paying bonuses in the future will vary
> enormously. Most people automatically blame the insurance company for poor
> returns, and while this may often be true, because the policyholder
usually
> has no idea of where his money is I put some of the blame on them for not
> keeping an eye on their money. If you had a mass of stocks and shares and
> their value went down, would they investor blame the companies, or would
he
> take it on the chin and say that he should have seen it coming and put his
> money in cash? Most endowments have alternative funds that can be used,
> although this is easier said than done because unless you're Warren Buffet
> you won't know what to do and when to do it.
>
> People who have had experience with their own policies, either maintaining
> them or selling them, are not the best people to take advice from unless
> their policies match yours. It's horses for courses. And over-riding all
> this is what's going to happen in the future, not what's happened in the
> past.
>
> If you want to sell yours, then it needs to be a with-profits policy, not
> unit-linked. However, if you need the cash you need the cash, and maybe
> selling is the best option. If it's unit-linked you'll have to sell it
back
> the provider, i.e. encash it.
>
> Rob Graham
>

If someone has a with-profits, life assurance, endowment policy and they
sell it on. Does the new owner of the policy now have an interest in the
life assured of the previous owner?

Buster