Important Legal Information

Risks involved in selling your Endowment Policy

Absolute Assigned Policies Limited (referred to below as “we” or “our”) is committed to treating you fairly.

In this notice, we provide you with information to help you understand the potential risks involved in selling your endowment policy.  However, this notice does not and cannot explain all of the risks and other significant aspects involved in selling your endowment policy.

You should take sufficient time to read all the relevant information that we provide to you, including this notice, any offer letter that we provide to you and our Terms of Business.  You should not sell your endowment policy unless you fully understand the risks involved.  If you are in any doubt you should seek independent professional advice.

1. You may receive less for selling your endowment policy than if you hold it to maturity

You should bear in mind that the amount that we pay you for your endowment policy, which although we guarantee will be above the surrender value, will not necessarily put you in a better financial position than if you hold the endowment policy to maturity.

You should therefore consider whether selling your endowment policy before it matures is the correct choice for you, taking account of your personal circumstances.  There are alternative options to selling your endowment policy which may better suit your circumstances (including borrowing against the policy, and making the policy ‘paid up’ so no further premiums are payable).

2. You lose life cover when you sell your endowment policy

If you sell your endowment policy you will lose the benefit of the life assurance protection under the policy.  You will also lose your right to any potential windfall payments associated with the policy or the provider (for example, as a result of the demutualisation of a provider that is currently a mutual life office).

3. Charges or loans secured against your endowment policy must be redeemed

Your receipt of completion monies from the sale of your endowment policy is subject to the redemption of any charge or loan secured against your policy.  Payment to settle any such loan will be deducted from the completion monies that you receive.

4. You retain liability for unpaid premiums up to the date of the contract of sale

Any unpaid premiums that are outstanding will be deducted from the monies paid to you on completion of the sale. 

5. Our offer to you could be withdrawn, or could change, during the sales process

Please be aware that there are certain circumstances where we will need to withdraw or change our offer to you.  This will happen if new information comes to light during the sales process, or if circumstances change (for example, the issuer makes changes to bonus rates, the surrender value, or premium rates, or if market conditions change).  These circumstances are set out more fully in clause 12 of our terms of business.

6. We do not provide investment or financial advice

We do not provide investment advice relating to the selling of endowment policies.  Any information we provide to you (for example, information about the sales process or about risks) is purely factual and does not take into account your personal circumstances.