Mortgage endowments are pretty hot right now — they’re basically an investment that’s supposed to let you not only pay off your home loan but also give you a little cash to celebrate with. Now that’s an investment we can definitely get behind. Unfortunately, if the fund doesn’t do well then you could be left with a massive shortfall that you will need to make up. Some people combine the endowment fund with a life insurance policy. This turns into a life endowment policy, and it gives you a fixed amount if you were to suddenly pass away. Usually this is more than enough to pay the house off. When the policy matures, you will also have a fixed amount that’s paid out.
So what about selling your endowment policy ahead of the maturity point? If you’re expecting a shortfall, it can help you not lose so much money. You need to be aware of the presence of penalties. You’ll also lose the life insurance benefit that was attached to the policy. Selling early also means that you’re going to need to look for maximum profit.
You need to contact your endowment provider and they can give you a surrender value. This isn’t a number that you can negotiate at all. They will tell you exact what they’re willing to pay for the policy, and you can take it or leave it. What you will need to do is take your surrender value figure and then go look around at the secondary market for endowments. Chances are good that you’ll get a better sales price than what the surrender value was, but this isn’t the case always. With most things, it’s based on the market’s whims, not yours.
It’s all about the numbers here. Study the numbers and see what others are willing to offer. Getting quotes from companies will ensure that you’re going to make as much profit as you literally can. With those penalties on the table, you have no choice but to make this a reality. In addition, you have to also think about the fact that you’ll be on the hook for the rest of the mortgage payments. Without the endowment, you might have a hard time getting that straightened out. It’s up to you to make things happen, so why not check it out today while it’s on your mind?
