How to Cash in Endowment Policies

by Kenneth W. Michael Wills ; Updated July 27, 2017
You have options when cashing in your endowment policy.

Items you will need

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

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 advisor before making your final decision.

Surrendering to the Issuer

Step 1

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

Step 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.

Step 3

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

Selling to a Third Party

Step 1

Contact a third-party company that specializes 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.

Step 2

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

Step 3

Consult with a financial advisor 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 advisor to review. Sometimes, although you may need cash right now, it might make more sense to hold the policy until maturity.

Letting the Policy Mature

Step 1

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

Step 2

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

Step 3

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

About the Author

Kenneth W. Michael Wills is a writer on culture, society and business. With more than 15 years of experience in sales, public relations and written communications, Wills' passion is delighting audiences with invigorating perspectives and refreshing ideas. He has ghostwritten articles on a diverse range of topics for corporate websites and composed proposals for organizations seeking growth opportunities.

Photo Credits