It started a few years back and now, surrendering endowment policies has really become big business, specially in the UK. But selling endowment policies is not as easy as it looks, guard yourself with these tips and avoid some common pitfalls.

First, before stopping and surrendering an endowment, always check your policy and make sure there is some value in doing this.

Early redemption can result in making less than what you would received if you have it carried on for its full term. So unless you really need the money, then don’t do it.

However, continuing to pay for a poorly performing investment could be a good option for surrendering your endowment policy. You can sell it back to the company who sold it or to a third party.

Different companies have different requirements when it comes to them buying an endowment. The usual requirements is that it should be with profits and have been running for a minimum number of years.

Furthermore, other policies may be more difficult to sell to investors as they do not give the same levels of return as a with-profits.

There are also a minimum surrender value before you can give it back. If the policy doesn’t meet this criteria, then you sale cannot be handled – which means the only option available is what the policy issuer can offer.

One thing you should remember, don’t just suddenly stop making payments or cancel the policy without doing research and taking the appropriate financial advice.

If you stop payments on a policy, you may lose any life assurance cover that it offered you – an important consideration for your dependents if you are then taken ill or die without having set up an alternative means of paying off the policy.