Summary
The loss of confidence in endowments was underlined this week when two of the biggest players in the market for traded policies withdrew from the business.
The "second-hand" market can offer prices at least 10% higher for endowments than surrendering them to the life company, depending on the length the policy has to run and the strength of the life company. The buyer, who continues to pay the premiums, can still make a profit by making a conservative calculation of what the policy will pay out when it matures. Falling bonus rates have led to lower prices being offered and a shrinking market.See the full content of this document
Extract
Big Players Abandon Traded Endowment Policies
Beale Dobie, which had an office in Glasgow, and Policy Portfolio, the first company to set up in the m...
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