Media

Resale/traded life insurance policies(TLPs) and resale/traded endowment policies(TEPs) are investment products that involve purchasing life insurance policies or endowment policies from the original policyholder, and then paying the policy premiums until the policy matures or the life insured passes away. These types of policies are commonly referred to as “second-hand” policies.

When a policyholder decides to terminate their life policy or endowment policy, they can do so through an individual or a resale insurance brokerage company that wants to buy the policy for investment reasons. The intermediary usually offers to buy the policy at a higher price than the surrender value offered by the insurer. The policyholder will benefit by selling his policy as he will exit with more money. As for the resale insurance brokerage company, they will service the policy to its maturity or resells it to another investor. Only existing policies purchased from the original policyholders are involved in the process and no new policies are created.

TLPs and TEPs are not regulated by the Monetary Authority of Singapore (MAS), which means that intermediaries and distributors of these policies are not licensed by MAS. Investors who buy TLPs and TEPs are obligated to pay the policy premiums until the policy matures or the life insured passes away.

If you or someone you know is thinking of giving up a life insurance/endowment policy, please do not hesitate to contact us. At CapitaSafe, we pay Higher and Faster if you are planning to liquidate and cash out on your policies.