MAXIMISE THE CASH VALUE OF YOUR CLIENT'S POLICY

Once the decision is made to cancel (cash up) a life insurance policy, its time to look for the best payout options.

Our highly experienced team offers policyholders a fast, efficient, and potentially more lucrative alternative to cashing in their policy with the life insurance company.

For more information regarding the service we offer advisers and policyholders, below is a list of frequently asked questions about the policy trading market:

Q: What policies are suitable for selling?
As a general rule, we will only buy traditional whole of life and endowment life insurance policies. Typically, these will be life insurance policies that receive bonuses each year from the life insurance company. Furthermore, each policy must meet the initial criteria shown on our Ready Reckoner. If you are unsure whether your client’s policy qualifies, call us on 0800 476 542.

Q: How much more will Policy Exchange pay above net surrender value?
The Additional Payment will vary from 1% to 10% of the net surrender value. However, we cannot guarantee an Additional Payment will be made in each and every case.

Q: Why can't Policy Exchange make an additional payment in every case?
Policy Exchange obtains information and contract terms from the life insurance company in relation to your client’s policy. Using this information Policy Exchange determines the net market value of the policy based on holding it to maturity. If the net market value of the policy does not exceed the Net Surrender Value, no Additional Payment can be made.

Q: What happens to the policy after my client has sold it to Policy Exchange?
Once we have paid your client the Net Surrender Value, the policy will be transferred into the name of a professional custodian company.

If we are able to make an Additional Payment the policy will be retained under the custodial facility through to maturity.

If we are unable to make an Additional Payment the policy will be surrendered back to the life insurance company.

Q: Can anybody sell their Life Insurance policy?
Yes. Under the Life Insurance Act policyholders can assign their policy (transfer ownership) to any other person or company.

Q: How long will it take for my client to receive their money?
Once we have received the required documentation we will pay the Net Surrender Value to your client within 7 days. Any Additional Payment will be paid after we have completed full due diligence, which can take up to 4 weeks.

Q: How certain can I be, that my client will receive an Additional Payment?
Policy Exchange regularly updates its policy criteria on the Ready Reckoner. If a policy meets the criteria, there is a good chance an Additional Payment will be forthcoming.

Q: Does it matter if there are any premium or loans debts outstanding on the policy?
No. To keep the process as simple as possible, the initial payment to your client will reflect the Net Surrender Value after deduction of any premium or loan debts. Policy Exchange will then clear any outstanding premium or loan debts directly with the life insurance company.

Q: When should my client stop paying premiums?
Once your client has sent in the documentation for payment of the Net Surrender Value, you should arrange to have the premiums stopped immediately. However, we require documentation to be with us no later than 10 days prior to the next premium due date to ensure no further premiums fall due prior to payout of the Net Surrender Value.

Q: Do I receive a fee for my efforts?
Where Policy Exchange is able to make an Additional Payment, we will pay a referral fee of up to 2% of the Net Surrender Value to the introducing adviser. This can be rebated to your client at your discretion.