Top 7 Reasons Why Negotiated Endowment Policies Benefit You

You haven’t worked so hard every day only to watch your accumulated wealth over the years go down the drain.

Whatever your financial needs and future plans, here are 7 top reasons why endowment negotiable policies can be used for your benefits.

Low market risk

The market for tradable endowment policies (TEP) in the UK is a highly regulated industry. It has been in existence for more than 100 years and the governing body has a well-placed infrastructure to protect the interests of investors.

High capital guarantee

Each Tradable Endowment Policy (TEP) you invest in has a “Capital Guarantee” value in the form of the sum insured plus any attached bonuses. These values ​​once assigned cannot be reduced and eliminated. You can choose a Capital Guarantee percentage from 70% to 100%

No annual management and service fees

Unlike mutual funds, as a TEP owner, you are not charged annual management or service fees which in turn will marginalize your returns. Thus maximizing your potential earnings from the earnings paid out.

Fiscal benefits

If you are not a UK resident, i.e. a Singaporean, your TEP refunds are not taxable. (However, check with your respective tax agents regarding your particular situation.)

flexibility

At your own discretion, you can choose expiration dates ranging from 3 years to 10 years. Due dates are fixed so there is certainty in your financial planning. The best part is that since there is a market for TEP, you as the owner can choose to sell it anytime you want.

Zero cost for the investor

A unique feature of TEP is that the cost of the transaction is borne by the seller. This means that as an investor, what you pay is what you get!

Competitive returns

Most TEPs have been in effect for many years and are close to expiration. Most of the bonuses are only paid in the last year. By taking over a TEP instead of starting an endowment policy from scratch, you’re maximizing your earnings for the year.