Brian Goldstein, Chairman of the APMM, said that policyholders who surrender their policy would end up missing out financially.
Mr Goldstein said: "Last year, an average of around 180,000 people surrendered their endowment policy each quarter . Over a year this totalled a collective loss of more than £90million.
"Currently, policyholders who sell their endowment rather than surrender will get, on average, 10 to 15 per cent more money. Increased demand for traded endowment policies (TEPs) both from within the UK and from Germany, means that many more policyholders can sell their policies and they can get more money than they used to. In some instances, policyholders could see as much as 30 per cent more."
Mr Goldstein said that policyholders should always seek professional advice before disposing of their policy as there are different options available which will suit different individuals dependent on their circumstances.
These options are:
· Borrowing against the policy;
· Making the policy 'paid-up' (which means no longer continuing to pay premiums);
· Taking a premium holiday (where the policy allows them to do this);
· Selling it to a third party, for example a market maker.
