DON’T SURRENDER WITHOUT A FIGHT THIS NEW YEAR! Wednesday 19 December 2007 PDF Print With £90m lost each year in surrendered consumer endowment policies aap, the UK’s largest endowment policy market maker and part of the TIS Group, is calling on consumers this New Year to consider all the options before surrendering their endowment policies back to the life company. They could get a better offer in the thriving secondary market. At a time of year traditionally associated with spiraling debt, many policyholders will be considering surrendering their endowment policy. However, they risk losing out on an estimated £90m by surrendering rather than selling on their policies says Dan Farrow, CEO of aap’s parent company, the TIS Group. Dan Farrow, CEO of aap’s parent, the TIS Group, comments: “Against today’s uncertain economic backdrop of continued volatility in stock markets and a weakening housing market, which recorded a fall in house prices for a third consecutive month in November, many policyholders will be questioning how they will address any shortfall on their endowment policies or at worst, continue to service their debt. “If a policyholder has made the decision to cash in an endowment policy, he or she will want to get as much as they can for their investment. Of course, this may only go some way to helping them cope with the higher mortgage rates that many could be facing when a large number of current fixed rate deals come to an end next year. “When you consider that aap, the UK’s largest trader in endowment policies, can pay up to 35% more than the redemption value offered by the life company which issued the policy, it is worthwhile considering all the options available.” According to Mr Farrow, this figure is particularly worrying when you consider that the life companies are obliged and indeed, do make great efforts to inform policyholders of the alternatives to surrendering their policy when approached in the first instance, in other words that there is a secondary market where demand exists and a higher price could be obtained. He added: “Life companies make great efforts to inform their customers about their options in order to help them make an informed choice on whether to surrender their policy or sell it on. “But there is clearly room for improvement around increasing public awareness on the potential alternatives to redeeming endowment policies, as well as coping with the burden of rising levels of debt.” Many endowment policies were traditionally used as a mechanism to repay a mortgage at the end of the mortgage term. There are approximately 10 million mortgage policies still in existence, however around eight in ten* endowment policies in force are unlikely to pay off the full mortgage they were taken out to cover. * Source: ABI September 2006 For more details please contact Andy Mossack, Marketing Director. Email: email@example.com Phone: 020 8282 8072 Notes to editors: Research into the surrender value of endowment policies by the Association of Policy Market Makers, the industry body for firms buying and selling with-profits endowments and whole-of-life policies, reveals that endowment policyholders miss out on around £90m each year by surrendering rather than selling their policies. About aap: aap was established in 1968 and is the UK’s oldest and largest specialist in the buying and selling of endowment policies. The Company has been involved in the purchase of over £1 billion of with-profit endowments. aap is authorised and regulated by the FSA and is a member of the Association of Policy Market Makers (APMM). learn more about aap This press release was distributed by ResponseSource Press Release Wire on behalf of MediaCo (UK) Ltd in the following categories: Personal Finance, for more information visit http://pressreleasewire.responsesource.com/about.