These are are common practice as it's very unusual for policyholders to maintain their policy until it reaches its maturity date which is normally 25 years after the policy began. The policy is usually surrendered to the insurance company who usually always give a quote that is significantly lower than what the buyer bought it for. Another method of selling endowment policies is to trade them on the open market as second hand endowment policies.



The market for Traded Endowment Policies works on the assumption that endowment policies will grow steadily in value until they mature. As each policy has a maturity date, an investor can buy one knowing exactly when it will pay out which provides financial stability for the buyer.

There are many more benefits of them such as the fact that they are an attractive investment opportunity as they offer long term security and high guarantees. Investors receive all the advantages of the policies past performance and future bonuses making them an attractive prospect. As a result of this, traded endowment policies provide long term security and greater opportunities for potential investment growth.

This is also a safe way of investing your money as every annual bonus declaration increases the guarantees which protects your investment even further. They even have lower risks than other types of investments and are more efficient as the initial charges have already been paid and you don't need to pay them again.

There are even benefits for the people who are selling their policies which means that both parties are happy. It is very likely that you are going to get more money for your endowment policies by selling them this way rather than surrendering them to the company you bought them from. As well as this is the added bonus that when you sell your policies you no longer have to pay premiums for them.

Perhaps one of the reasons why so many people choose to do this is because people know that they can rely on the market as it has been established for more than 150 years. It is continuing to grow rapidly as investors keep discovering the benefits of investing in traded endowment policies.