Clear the mortgage

Endowment policies are supposed to fully pay up an endowment mortgage and indeed there was a time when they all did. However in recent times many holders of these policies have run into problems when selling off their policies because the amount they end up with is not enough to clear the mortgage.

The major problem is that in some cases, policyholders are surrendering them to the issuing insurance companies for ridiculously low prices. The UK government stepped in with legislation to protect consumers by informing them that they may have higher value with a endowment policy selling service. Admittedly some endowment policies are not all that desirable but if a willing buyer is found by the endowment selling service, then the price paid can be considerably better.

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