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For full year 2007, members of the Association of Policy Market Makers (APMM) said they were inundated with requests for policies from institutions abroad.

Brian Goldstein, chairman of the APMM, said the record year was good news for endowment policyholders who had sold their policies.

"With unprecedented levels of demand for TEPs, market makers have been snapping up policies and paying more money for them. Currently, the average endowment policyholder looking to sell their policy is receiving 10 to 15 per cent above the surrender value, and some are receiving far more.

"Add to this the fact that many life offices are more proactively alerting customers to our market when policyholders approach them about surrendering their policy, and 2007 has been a year where policyholders have benefited.

"We would urge anyone who has already decided to dispose of their policy to consider selling their policy rather than just surrendering as they could receive far more money."

Goldstein also said that demand was set to continue from overseas in 2008, with some German investment houses which originally invested in UK TEP funds in 2004 already investing in their sixth TEP funds.