Friday, November 5, 2010

7 Major Reasons Why Traded Endowment Policies Benefits You

You have not worked so hard every day only to see your wealth accumulated through the years go down the drain.

Whatever your financial needs and future plans may be, here are 7 major reasons why Traded Endowment Policies can be used to your benefits.

Low Market Risk

The Traded Endowment Policy (TEP) market in the UK is a highly regulated industry. It has been around for more than 100 years and the governing body has well placed infrastructure to protect the interests of investors.

High Capital Guarantee

Every Traded Endowment Policy (TEP) that you invest in has a "Capital Guarantee" value in the form of the sum assured plus the attaching bonuses. These values once allocated cannot be reduced and removed. You can choose percentage of Capital Guarantee from 70% to 100%

No Yearly Management and Service Fees

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

Tax Benefits

If you are a non-UK resident ie Singaporean, your returns from TEP are not taxed. (However, please check with your respective tax agents with regards to your unique situation.)


At your own discretion, you may have a choice of maturity dates ranging from 3 years to as long as 10 years. The maturity dates are fixed so there is certainty in your financial planning. The best part is since there is an existing market for TEPs, you as an owner can choose to sell it anytime you wish to.

Zero Cost to the Investor

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

Competitive Returns

Majority of the TEPs have been in forced for many years and are close to their maturity dates. Bulk of the bonuses is only paid out at the final year. By taking over a TEP instead of starting an endowment policy from scratch, you are maximizing your returns per year.

Kevin Yeo is an expert in the business of helping individuals grow and preserve their wealth.

He is currently in the project of educating investors of the merits of Traded Endownment Policies.


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