[Pt. 1] DO NOT DO THIS After Selling Endowment Policies to Brokers
Updated: Jul 20
If you have sold an endowment policy to a broker,
DO NOT reveal yourself to the public, with name and appearance, that you have done so to the broker.
DO NOT share with anyone, other than your immediate family members and your servicing financial advisor as stated in the endowment policy, that you have done so to the broker.
On September 2020, a local news publisher published a news video about an increase in sale of insurance policies in the secondary market for fast cash. We are NOT in the news. In the news, an endowment policy seller was featured, with full name and appearance revealed in public. The broker whom the seller sold an endowment policy to was also featured in the news.
That is where the issues lie:
The news seems to imply that it is OK to share with anyone that you have sold an endowment policy to a broker for cash.
Based on information in the news, a buyer could contact the broker and be looking to buy an endowment policy where the life assured is that seller, after having known the seller's full name and appearance.
The 2) in above-mentioned is a moral hazard that can be easily avoided, if the seller did NOT reveal himself/herself to the public in the news. The broker seems to disregard the importance of protecting the sellers' identity against moral hazard.
Do you want to deal with a broker who does NOT protect your identity when selling your endowment policies to them?
At PolicyWoke, we perform our work in a professional and ethical manner when protecting both the sellers' and buyers' interest. In our view, the identity of the policy seller should NOT be revealed in public that could expose oneself to moral hazard.
(In the above screenshot, we have concealed the identity of the endowment policy seller and the news publisher to protect their respective identities.)