Traded Endowment Policy
Traded Endowment Policies ( TEP ) are British life insurances in the secondary market . TEPs have been around for over 150 years. This secondary market is monitored by the UK insurance regulator, the FSA . The policyholder sells his policy for a wide variety of reasons (loan replacement, divorce, etc.). He could return them to his insurance company or sell them on the secondary market. When selling on the secondary market, they usually get a better price than from their insurance company.
Investors can such policies, which already credited bonuses and the sum insured with continued payment of premiums are guaranteed to purchase. When the policy expires, a final bonus may be added. The amount is not guaranteed and depends on the success of the insurance over the term of the policy. With this form of investment, the buyer benefits from the existing guarantees and good returns .
English life insurers traditionally invest their money much more in equity investments. For most companies, this share is over 30%. For German insurance companies, the proportion is currently below 5% and is limited by law to 35%. The mostly very long insurance terms combined with the higher equity proportions explain the higher possible returns with British life insurances.
Individual evidence
- ↑ AVD excellent in policies ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ lifeFinance lexicon
