Investing in Traded Endowments
We offer a pool of Grade A traded endowment and life insurance policies which are procured from individual policy holders who do not wish to continue with their policies.
When you buy over one of these policies, you're investing in policies which are free from front-loaded distribution costs (i.e., agency fees). You will receive a full cash pay-out from the insurer once the policy matures or the insured person passes away.
Depending on the remaining tenure of the policy you purchase, annualised returns are a healthy 3-5% per year.
How Traded Endowment Policies Work
Frequently Asked Questions
What are traded endowment policies?
Traded endowment policies are also known as second hand endowments that procured from the original policy owner. After ensuring a clean title, TES makes these endowment policies available for take over by sophisticated buyers.
Where to buy traded endowment policies in Singapore?
TES is the leading provider of traded endowment policies in Singapore and we are trusted by Singaporeans from all walks of life.
Who is TES?
TES Capital Investments Pte Ltd is a company registered in the Republic of Singapore. We are the leading specialist in traded endowment and life insurance policies trusted by Singaporeans from all walks of life.
How do you acquire the policies you have on hand?
We specialise in assisting Singaporeans who looking to surrender their insurance policies. TES has become a trusted helper to these discontinuing policy holders. We offer these policies for takeover after ensuring that these policies have a good title.
How will a policy I buy be transferred to me?
The transfer of ownership is done through absolute assignment and all the necessary paperwork is done at the office of the insurance company in the presence of their officers. The procedure is simple and fully transparent.
What is an Absolute Assignment?
An Absolute Assignment is the transfer of the ownership (all rights, benefits and liabilities) of a policy completely from the existing policyholder (Assignor) to the new policyholder (Assignee) without any terms and conditions.
A policyholder can transfer the rights on his policy to another person/entity for various reasons.
This Absolute Assignment process is governed under the Policies of Assurance Act (Chapter 392).
If the Assignor or Assignee is a natural person, he or she must be at least 21 years old, of sound mind, not an undischarged bankrupt and not entering into Absolute Assignment under duress.
The Monetary Authority of Singapore (MAS) has on 30 March 2015 issued a Notice to Life Insurers stating, among other things, that assignment of the benefits of a life insurance policy is allowed to a person other than the insured.
How to do an Absolute Assignment in Singapore?
In order for Insurers to facilitate the Absolute Assignment process, both the Assignor and Assignee are required to complete and submit a Notice of Assignment together with other required supporting documents and forms. This Notice of Assignment can be downloaded from most of the Insurers' websites directly.
Upon completion of the Absolute Assignment process, the Insurer will send a written acknowledgement of Notice of Assignment to both Assignee and Assignor.
Can I transfer the policy to another party in future?
Yes you can. You can perform another absolute assignment at the office of the insurance company to effect the next transfer.
How will I pay for the policy I’m taking over?
You pay TES an initial sum by bank transfer or cheque for the policy you’re taking over. You will then become the new policy owner and any future premium payments will be made directly to the insurance company.
What if there are policy nominations or beneficiaries?
The insurance company will require that any nomination or beneficiary be removed prior to an assignment. The policy you take over will be free from any nomination or beneficiary.
How about the death benefits of the policy?
All rights and benefits belong to the policy owner and only the policy owner can provide the insurance company with a valid discharge. The insurance company will contact the policy owner for a pay-out should they become aware that the person insured has passed on. If this does not happen, the policy will continue on to maturity.
What happens when the policy matures?
The insurance company will notify the policy owner by mail approximately one month before the maturity date of the policy. Payment is usually effected by cheque issued by the insurance company and sent to the registered address of the policy owner, although other forms of payment can be arranged.
Is there a capital guarantee on my investment?
When you purchase a traded endowment policy from TES, a legal transfer is effected and you become the new policy owner. And since we only offer the highest quality traded endowment policies in the market, you'll have Singapore's most reputable insurance companies backing your investment!
As an additional benefit to our clients, TES is the only traded endowment specialist in the market that genuinely offers to buy back plans that our clients purchase from us. This gives you the assurance of receiving your original capital back should you wish to cash out before the policy maturity date.
Why should I have a portfolio of traded endowment plans with different maturity dates?
The majority of our clients aim to create a portfolio of plans with staggered maturity dates, at times opting to further diversify by purchasing endowment plans from different issuers.
The benefit of this arrangement is to spread out the cashflow requirements of any ongoing premiums, as well as optimise future income streams as the policies mature one after the other.
Many sophisticated investors turn to TES because we have the largest traded endowment list in Singapore. This allows our clients to pick and choose from a huge inventory and create the optimum portfolio for their future cashflow needs!
What happens if I pass away?
The policy will be treated as one of your assets, similar to other investments, property, or money in bank accounts that you may own. Upon your demise, the policy may be assigned, surrendered or sold to another party by the executor of your estate.
Are you licensed by MAS?
There are currently no MAS administered regulations which govern the sale, purchase and distribution of traded or resale endowment or whole life insurance policies. As such, TES Capital Investments Pte Ltd is not required to be licensed by MAS.
"My friend told me about TES and it was the right time as I was planning to open a fixed deposit account. Traded endowment plans are good for me as I would like to put my cash to good use while maintaining the assurance that I'll get my money back at the end.
You guys are doing a great job and service, keep it up!"
Ong Siew Fai, 33