Second hand endowment policies

[Ndaba563556]

Hello guys ..I have an endowment plan and I’ve already made two withdrawals..i cant access the money until the policy matures in 3 years and i need the money quite urgently ..does anyone know anyone who buys second hand policies ?

 

[johnjm]

Hello guys ..I have an endowment plan and I’ve already made two withdrawals..i cant access the money until the policy matures in 3 years and i need the money quite urgently ..does anyone know anyone who buys second hand policies ?

Have you read the fine print that allows it to be ceded? Unaware of any that do.

 

[mr_norris]

Hello guys ..I have an endowment plan and I’ve already made two withdrawals..i cant access the money until the policy matures in 3 years and i need the money quite urgently ..does anyone know anyone who buys second hand policies ?

Endowment policies are designed to prevent you from withdrawing. You need to read the fine print or contact your broker.

And unrelated to your question, but I stay away from them. They (or at least the one I was duped into) was a high cost and promises, but low growth policy. There are much better ways of saving / investing IMO.

 

[johnjm]

And unrelated to your question, but I stay away from them. They (or at least the one I was duped into) was a high cost and promises, but low growth policy. There are much better ways of saving / investing IMO.

I doubt he is a saver. I'll take a serious bet that someone gave it to him.

 

[Jopie Fourie]

Endowment policies can indeed be ceded and there are investors who usually do buy these policies. Problem is, as mentioned, some companies do not allow this. You need to get a copy of your agreement and see if it is allowed. Investors are very picky on what they buy and you will often get less than 10% of the value of the policy (around 1-3%). If it is very close to maturity, you may get more (probably around 5-6% of the value, if that much).

The biggest problem today is that there are very few buyers left in South Africa. In fact, I will not be surprised if you will not be finding a buyer at all. Since the introduction of Capital Gains Tax, most these investors dissappeared from SA and is now making a living from this abroad.

 

[Ndaba563556]

The current market value on the policy is R800 000 i need R500k ,can i ceed the policy to the bank for a loan ?problem here is I’m still a student i have no regular income I doubt the bank will consider my loan application ,

 

[Jopie Fourie]

The current market value on the policy is R800 000 i need R500k ,can i ceed the policy to the bank for a loan ?problem here is I’m still a student i have no regular income I doubt the bank will consider my loan application ,

Yeah, no, I doubt any bank will consider it as security. Neither will it be worth it for any investor. Problem is, with Capital Gains tax, the endowment is worth less than what you are looking for.

 

[MosibudiChar]

Hello guys ..I have an endowment plan and I’ve already made two withdrawals..i cant access the money until the policy matures in 3 years and i need the money quite urgently ..does anyone know anyone who buys second hand policies ?

Hi, did you endup getting help with your policy.

 

[MosibudiChar]

Hello guys ..I have an endowment plan and I’ve already made two withdrawals..i cant access the money until the policy matures in 3 years and i need the money quite urgently ..does anyone know anyone who buys second hand policies ?

Hi Ndaba.

Did you manage to get help with selling your policy.