The British Broadcasting Corp. (BBC) urges companies to consider and to check endowment policies before selling them to ensure its value.
It is believed the early redemption of these policies will result to making less profits because a person will have to carry it on full term and will continue to pay for poor performing policies.
Moreover, some endowments are difficult to sell to investors because they do not give the same return of investments compared to with-profits.
Before selling these endowments, individuals are advised to hire the services of independent financial advisors to gain right insights on the pros and cons of selling endowments and to ascertain the rightful time in selling them to investors.
They are also advised to undertake research before halting payments or canceling the policies.
However, if one stop paying on policy, it is likely that a person will lose life assurance coverage, a vital decision to be considered for one’s dependents specially in times of illness and death.
