Best Price Endowment > FAQs > Traded Endowment Policy or TEP market exists

Why the Traded Endowment Policy (TEP) market exists?

The traded endowment market exists because over 100,000 people each year decide to cash in their policy and these are either sold or surrendered. When people cash in (surrender) their endowment policy, they may only receive a proportion of the policy's value.

If they sell their policy as oppose to surrendering it they may receive much more for it.

When a policy, that has a number of years to run until maturity, is no longer required, it creates an investment opportunity for buyers to purchase a policy partway through its life. The buyer pays the premiums from the point at which they purchase the policy until maturity so that they can benefit from the ultimate maturity value of the policy.