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Unfortunately most endowment policies are not maintained to the end of the selected term of years. There are many reasons why the original policyholder may want to surrender their with-profits endowment policy before the Maturity date.

      The most common reasons for selling an endowment are: -

• Change to repayment mortgage
• Shortfalls in projections
• Divorce
• A need for capital

In the majority of cases, a better surrender value can be obtained on the TRADED ENDOWMENT MARKET, compared to that offered by a Life Assurance Company. The difference is typically 10% but in a lot if cases can be much higher.

One of the reasons why Life Companies appears to offer poor value is because the policyholder incurs "early surrender penalties" when selling an endowment, which are effectively charges deducted from the current value. The additional costs are incurred because the charges levied by the Life Companies are based on the assumption that the policyholder will maintain the policy for its full term.