Flexibility
Traded Endowment Policy investment start from £2000, can go up to hundreds of thousands of pounds. There is a wide range of policies from top insurers available. With a choice of the sum invested, level of premiums and maturity dates.
Selling
Traded Endowment Policies can be sold or traded before maturity. This means that investing in longer date policies is possible.
Reassurance
The stability of well-know life offices means that your policy is secure. By investing in TEP holder have a stake in well established insurance businesses. Traded endowment policies are covered by the Policyholders Protection Act 1975. There is even limited cover in the even of a firm defaulting provided by the Investors Compensation Scheme.
Competitive Returns Relative to Risk
Traded Endowment Policies provide very satisfactory returns if you consider the Risk-Return and compare them to similarly profiled investments. Investments can be targeted for increased returns if one accepts the higher level of risk involved.
Efficient Investment
Since the original policy holder has covered all of the costs involved in the setup of a with-profits policy, a Traded Endowment Policy can sometimes be acquired form much less then their underlying value
Continuous Growth
TEPs "with-profits" grow continuously in value due to the yearly allocation of bonuses. When annual bonuses are declared in good years part of the bonus is reserved to be added back to the policy in poor years. This means that the total value of the police will continue to grow steadily throughout the life of the TEP. There may be additional bonuses declared on maturity of the Traded Endowment Policy.
Maturity
Traded Endowment Policies have a set mature date. Bonuses added at maturity can account for up to 50 % of the total maturity value. These are added to the Basic Sum and Accrued Bonuses and the Total Return is calculated.
Loan Facility
Traded Endowment Policy can be used as security against loans.
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