If I decide to sell my policy, how long until I get paid?

On average from start to finish would be around 4-8 weeks.

If my policy is Tradable how much more can I expect to receive?

On average 10% higher than surrender value, but this can be increased to over 40% on certain policies. Please note you could get back more or less than the figures quoted.

Is the price I am offered guaranteed?

Most Market Makers reserve the right to amend a price or withdraw from a sale at any time during the sales process although they normally only do so if bonus rates change.

What documents are required?

Typically:-

• Your policy document
• Latest bonus notice
• Written confirmation of current Surrender Value
• Any deeds of assignment/re-assignment say from a bank or building society that you may have.
• Completed Market Maker contract notes
• Non bankruptcy certificate

In respect of the UK Anti-Money Laundering Regulations anybody selling or buying a policy needs to prove their identity and prove their address by providing evidence as detailed in the Money Laundering Form.

What if I have lost the original policy document?

This is not a problem as you can apply to the Life Office for a duplicate policy by completing a lost policy declaration

My policy is still linked to my mortgage will I still be able to sell it?

Not unless your mortgage provider agrees to release the policy back to you. Different providers will take different stances on this so it is best to speak with them in the first instance.

I have a unit-linked endowment policy why can’t I sell it?

The market in Traded Endowment Policies is currently only concerned with traditional with-profit policies. The reason for this is that quite often the surrender value offered by the life company does not truly reflect the value of the policy as a continuing contract. However the current value of a unit linked policy is the number of units held multiplied by the price and as the price can go up as well as down, often daily, there is not the guarantee offered by traditional contracts

In the recent past there has been a small market for unit-linked and unitised with profit policies or indeed any policy under 10 years old as they were sometimes bought for a tax reduction scheme. Unfortunately, the Chancellor closed this particular tax loophole in the 2003 Budget and consequently there is no longer a market for these policies.

Will I have to pay any costs?

No the price we quote you is the price you will receive

What happens to the life assurance cover under my endowment policy?

When a policy is sold the new owner takes over all policy benefits. The life assurance cover remains on the original life/lives assured however should the original life assured die then the claim value would be paid to the new policy owner.

It is important to remember that if you sell or surrender an endowment policy you will lose the benefit of the life cover and should consider replacing the life assurance before the policy is sold or surrendered.

Why do I have to send my passport or birth and marriage certificates for proof of age when the policy document states my date of birth?

Although the policy document shows your date of birth unless it says ‘age admitted’ or ‘age proved’ after your date of birth then the Life Company have not seen evidence of age at the outset of the policy and would normally require proof of age before the policy matures. In this case as you are selling the policy it is necessary to get age admitted at this point. Your passport or certificates will be returned by Special Delivery within a few days.

Why is Money Laundering Documentation required?

It is a legal requirement to comply with the UK Anti Money Laundering Regulations. Most types of financial transactions such as opening a bank account involve money-laundering checks. In relation to our services we have to obtain proof of identity and proof of address for anybody selling or buying a policy. There are only certain documents that can be used for this purpose and a list of those documents that are acceptable proof are detailed in the Money Laundering Form. Further guidance can be provided directly from the market makers.

What if Bonus Rates change before completion of the sale?

The Market Maker will typically reserve the right to alter the price or indeed pull out of the deal should bonus rates change

My policy was jointly owned by myself and my ex-husband/wife but was transferred to me as part of the divorce settlement but my ex is still a life assured – Can I still sell it?

Yes. When the policy was transferred to you it would have been done with a ‘joint to sole’ deed of assignment and this document will need to be sent along with the policy document and other documents to the solicitors handling the sale of your policy.

Why can some policies be sold and not others?

Whether a policy can be sold for more than the surrender value depends on a number of factors. Normally only traditional with-profit policies can be sold and many other factors need to be taken into account such as the term of the policy, how long it has been running, the life office, the generosity or otherwise of the life offices surrender values etc. Indeed the demand or lack thereof can sometimes mean that a policy that our system highlights as amber or green may not receive a bid.

Is tax payable on the proceeds of the sale of a policy?

The tax position will be the same as if the policy was surrendered to the life company and will depend upon your circumstances. If in doubt seek expert advice.

What happens if a policy is still being used as security for a loan?

It is still possible to sell the policy. The Market Makers staff will help make suitable arrangements with the lender.

Can a policy be sold which is written under Trust?

Even if a policy is written under Trust it is often possible to sell it. Once again, the Market Makers staff will advise after inspecting the Trust Deed.

When should payment of premiums be stopped?

Please continue to pay premiums until advised by the Market Maker to stop. They will refund any premiums paid after the “Last Premium Assumed Paid” date shown on the offer letter.