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Selling Endowment Policies - Selling Endowment Policies to Pay for Mortgage Interest

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Selling endowment policies is something that has become very popular over the years with the rate of the mortgage decline during the recession. An endowment policy is a type of insurance that functions with a specific variation on a life insurance policy that includes gains from a growth in investment. Typically, endowment policies are term life insurance policies that are in effect for the same term as a mortgage, about 15 or 20 years and sometimes, even 30 years. The endowment policies are most often used as a way to repay a mortgage.

The usual course of action sees the policy owner saving the endowment payments until the end of the term at which time they use the accrued amount to pay off the mortgage. Instead of making the payments, the owner saves them to make one final payment of interest. While the amount of money available at the end of the period is typically quite large and the insured will receive the endowment money in a lump sum, sometimes it will not pay of the entire mortgage interest payment. In addition to this action, because the policy is a life insurance policy, if the owner of the policy should expire before the end of the term, the loan is covered by the policy.

In some instances, the owner of the endowment policy would wish to sell the endowment policy because of the fear that it will not cover the final mortgage payment. Additionally, the owner selling an endowment policy could instead trade the policy for a better deal. This is an action that has become a popular practice. Endowment policy selling has numerous regulations attached to it and can be a tricky process to initiate. Additionally, various companies willing to deal in the sale or trading of endowment policies must be contacted and aligned together. Because of the nature of the policy itself, the hiring of a company specializing in this type of sale should be considered, especially if a client wishes to get the best price for the policy.

The endowment policy selling regulations pertaining to the sale or trade of the policy through a buying company require that certain fees to be paid. These fees are in addition to the contracted company who is buying the endowment holding the proper licensure in the state or country in which they operate. However, because of the requirement for the company to hold these licenses, the clients can rest assured that they will come out on top and no one has taken advantage of them or the policy. Most endowment buying companies have certain moral and ethical tenets they adhere to so s to not desecrate the ethics of the client.

The company to which the client is selling an endowment policy should always make sure they have all the necessary licenses in order in addition to disclosing all possible fees, interest ad other costs. Some of these fees are placed according to the regulations of the state in which the client resides, however the other costs are simply a fee for service.

Sell Own Home - How to Sell Your Own Home [next] [back] Buyer Of Structured Settlement Annuity - Selling Structured Settlement Annuities - Structured Settlements, Factors a Buyer of a Structured Settlement Annuity Considers

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