The Traded Endowment Policy Market

The Traded Endowment Policy Market

The Motley Fool gives a straightforward, helpful and easy to understand explanation of the traded endowment policy market.

"A traded endowment policy (TEP) is an endowment that the original policyholder has sold on to an investor. The new investor is then entitled to all future benefits that the policy provides, as they have effectively bought it second-hand. They will also take on responsibility for paying the remaining premiums (if applicable)."

It is worth reading if you are considering selling your policy.

Making Money on Endowments

Making Money on Endowments

The Telegraph has a good article explaining how it is possible, if you are well briefed and prepared to take the risk, to make money on endowments by investing in Teps (Traded Endowment Policies).

There is also a novel bonus, if you get the right policy, of earning a nice little lump sum if the original owner of the policy dies.

Quite:

"Life insurance is sold as part of an endowment policy; when a Tep is sold on, that insurance still covers the person who initially held the policy. But any payment made as a result of that individual's death will be paid into the Tep, says Modray.

It is not necessarily a palatable way of making returns, but a "deed of assignment" when the policy is sold will ensure that the money is added to the fund if the original policyholder dies."

The lesson here is that there is always a way to make money; if you are brave, lucky and well advised.

Traded Endowment Policies

Traded Endowment Policies

There is quite an interesting article in The Telegraph, about traded endowment polices (TEPS).

TEPS is the market for buying and selling second endowment polices.