The Benefits of Traded Endowment Policy

no service fee or yearly management fee

Once you purchase a traded endowment policy it is legally assigned to you. All bonuses go directly to you. There are no yearly fees or service fees, but if you choose take out a loan to invest, then you will have to make your repayments.

no maintenance fee

When you purchase the TEP there will be no maintanace fee, however if you choose a savings plan, then you will be required to make yearly premium payments according to the policy.

fixed maturity date

The maturity date of the traded endowment policy is fixed, policies can be found to match your preference. This can be very beneficial when planning for future financial needs, such as paying education fees, retirement plans, mortgage payments etc…

flexible term and amount

Traded endowment policy gives you the option to choose when you want your TEP to mature. You can work out the investment term, from 1 year to well over 15 years, and amount of capital you wish to invest. This is unlike new endowment policies which have fixed term of 10, 15, 20 or 25 years. Your specific needs can be matched, e.g. you need a sum of capital in 7.2 years time, then a policy that matures in 7.2 years can be found. Optionally if you need approximately £50,000 in Nov 2009 to make capital mortgage repayment, then a police can be found to suit your needs.

high degree of control over your investment

When you purchase a traded endowment policy it will be legally assigned to you. This gives you full control and flexibility; you can choose to reassign, surrender, sell when ever it suits you.

discounted policies to the underlying value

Numerous traded endowment policies have been around for years, some even exceeding 20 years. So you don't have to pay high setup costs involved with setting up an endowment policy from scratch, so you can buy policies at a discount to their underlying value.

less volatile due to smoothing effect

In profitable investment years, not all investment return is distributed by the insurance company. Some is kept in reserve to maintain growth in poor investment years. This results in a more consistent "smooth" investment return to investors.