How to Cash in Endowment Policies

Written by kenneth w. michael wills
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How to Cash in Endowment Policies
You have options when cashing in your endowment policy. (investment image by Kit Wai Chan from

Cashing in or surrendering your endowment policy is an important decision, especially if the endowment has yet to reach maturity. You have a few options of how to cash in your endowment policy, which includes surrendering to the issuer, selling the endowment to a third party or holding it until maturity then cashing it in. The worse thing you can do, however, is miss payments and not keep the policy up-to-date. You risk cancellation of the policy and any life insurance protections. Regardless of your situation, you should seek the advice of a good financial adviser before making your final decision.

Skill level:

Things you need

  • Financial adviser
  • Last statement from your endowment policy
  • Copy of your endowment policy

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  1. 1

    Contact the issuer of your endowment policy to ascertain the surrender value and the procedures required to cash in your policy.

  2. 2

    Request the necessary forms from the issuer to complete the transaction, after he advises you of the surrender value of your policy to date.

  3. 3

    Return the forms as directed; your issuer will cut you a check for the surrender amount.

  1. 1

    Contact a third-party company that specialises in purchasing endowment policies for cash. These types of companies tend to pay more than the surrender value offered by the issuer because they take into account the value of the policy through maturity.

  2. 2

    Request an assessment and a quote free of charge from the third party; however, you should consult with a financial adviser before accepting any offers.

  3. 3

    Consult with a financial adviser to review the offer. Make sure you have your last statement from your endowment policy, along with a copy of the actual policy for the financial adviser to review. Sometimes, although you may need cash right now, it might make more sense to hold the policy until maturity.

  1. 1

    Hold onto your policy until maturity to collect the full cash amount and any performance gains over the term of the policy.

  2. 2

    Let your policy mature by making all required payments on time and allowing any performance gains to accrue.

  3. 3

    Contact your issuer and request the appropriate forms to cash in your policy once the policy reaches its maturity date.

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