Click here to a question.
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| AGE OF POLICY |
| Q: Our endowment policy has only been running for two and a half years. Would you be interested in buying it? |
| A: Market makers can only buy policies that have been running for at least five years or one third of their full term, whichever is the longer. |
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| COST OF BUYING A TEP |
| Q: How much will it cost to buy a TEP? |
| A: The price of an individual TEP can range from about £2,000 to over £200,000. Details of policies currently for sale can be found on the websites of APMM members - go to the Members List page of this website and click on any of the links to the members` own sites for further information. |
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| DEATH BENEFITS |
| Q: If death benefits pass with the ownership of the TEP are they payable on the death of the new owner or the previous owner? |
| A: When a policy is sold the `life assured` remains the original policyholder. If the life assured dies before the policy matures and if the life office is advised of the death, the benefits will be paid to the new owner. The previous owner (the life assured) will have already been paid the value of the policy when they sold it. |
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| DEATH OF ORIGINAL POLICYHOLDER |
| Q: How do you know if and when the original policyholder dies? In such an event are proceeds immediatly payable to the new purchaser? |
| A: The sellers of policies are asked to provide market makers with the names of professional referees who may be consulted from time to time to acertain the ongoing health of the life assured.
If the life company is informed of the death of the life assured before the policy matures, the investor will receive all the proceeds of the policy. If the life company is not aware of the death of the life asssured, the policy will continue to maturity.
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| FRIENDS PROVIDENT POLICY |
| Q: I have a with-profits policy with Friends Provident which has run for 10 years and I have now continued the policy for a further 10 years. Would the policy be suitable to sell on the open market? |
| A: Thank you for also sending us the details of your policy. These have now been passed to three market makers for independent evaluation and we are writing to you separately to give you the names of these three firms.
Policies such as yours are very suitable for selling on the open market and we must now wait for the three free valuations to check that the market makers are able to offer more than the Surrender Value.
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| GUARDIAN POLICY |
| Q: I have paid off my morgage and no longer need my Guardian policy for its original purpose. Can I sell it and put the money in an ISA? |
| A: Please complete a Valuation Application Form in the Selling section of this site. The policy can then be valued by 3 firms so that you will then know whether they can offer more, and how much more, than the Surrender Value.
Regretably, we cannot advise you on what to do with any of the proceeds of disposing of your policy. But the first step is to get it valued; you will then have a better idea of the options open to you. |
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| HOMEBUILDER POLICIES |
| Q: Can Homebuilder Policies be sold on the TEP market? |
| A: Yes; some APMM members buy Homebuilder policies. Please send us the details (see Selling a Policy - Application Form) |
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| JOINT OWNERSHIP AND TAX |
| Q: If the purchasers of a TEP are joint owners, will both be entitled to their respective capital gains allowance on maturity? |
| A: If the joint ownership has been properly registered at the life office when the policy was assigned, both joint owners will be entitled to use their Capital Gains Tax allowance when a policy matures.
Information on taxation is based on our understanding of current regulations which may change. Levels and bases of, and reliefs from, taxation are subject to change. Investors should take professional advice on the tax implications of investment which may depend on their own circumstances. |
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| POLICY VALUATION |
| Q: I have an endowment with Liverpool Victoria. How do I get more than Surrender Value for this policy? |
| A: Please go to the Selling section of this website and complete the Valuation Application Form. The policy details will then be circulated to three members for evaluation. Hopefully they should be able to offer you more than the Surrender Value! |
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| SUN LIFE |
| Q: I have an AXA Sun Life policy.
Do you trade in AXA Sun Life because it`s not on your list. |
| A: Yes, AXA Sun Life policies are traded on the market. We will be adding the company`s name to the list shortly - thank you for pointing out its ommission.
Meanwhile the form will accept `free text`, so do please send us the details of your policy so that we can get it evaluated for you. |
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| SURRENDER VALUES |
| Q: How do Surrender Values change? |
| A: Surrender Values will be adjusted by life offices to reflect the payment of premiums, changes in bonus rates and changes in company philosophy |
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| SURRENDERING A POLICY |
| Q: I have a with-profits policy which I intend to surrender early. Would the Surrender Value be taxable? |
| A: You should consult your life insurance company about the effects of surrendering your policy. |
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| UNIT LINKED POLICIES |
| Q: I have a unit linked endowment which is 7 years old that I would like to sell. Are there any organisations/companies buying these at the moment? If so how can I go about it? |
| A: Regetably, members of APMM are not able to make offers for unit linked policies at present. |
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