• PolicyWoke

Where did TEP / TLP (Traded Endowment / Life Policies) Come from?

Updated: Aug 18

I was intrigued by the term Traded Endowment and Life Plans that has springed up during my course of work. Hence I made a move to walk through the history along and this is what I found.

1) Traded Endowments first originated from the UK (United Kingdom). The traditional manner for endowments was to surrender. However, increasingly, people became open to the idea of auctioning the policy for a higher return in 1998.

As more people gain knowledge of it, it pathed the way to a secondary market where TEPs started, and it has developed into a relatively matured market.

Today in the United Kingdom, Consumers who intend to surrender their policies have to be informed by their insurer of the option of selling the policy (including in a secondary market) as an alternative.

A quick search online suggest that UK have a very robust and matured TEP market. They have two Association and they are namely ELSA (European Life Settlement Association) and APMM (Association of Policy Market Makers). Resale policies are very common.

Why is TEPs/TLPs (Resale Endowment / Whole Life Policies) interesting to Policy Holders and Investors 

1. It’s a Win-Win Outcome

Policy Holder

James (not his real name) decided to surrender his endowment policy. He was referred to check out the TEPs market place. Instead of getting $18,100 by surrendering his policy with the insurer, he found Carol who offer 5% more to take over (buy over) his policy.

James walks away with $900 more than surrendering it with the Insurer. BUT WAIT! Why would an investor pay more to take over from James and continue paying premium?!


Carol (not her real name) invested into James’ “pre-loved” "resale" endowment policy with an invested value of $19,000. The next year, after paying a premium of $900.00, the policy is projected to grow to $21,000.

$21,000 - $19,000 - $900 = $1,100 of bonus yield (after factoring the $900)

Yield is $1,100 / $19,000 = 5.79% (does this sound attractive to you as an investment), even though it is non-gauranteed? Of course, even if it drops to $800 per year, it’s still a cool 4% investment.

And, Carol has the option to surrender anytime when she feel its not meeting her investment objective.

2. Better Capital Perservation for Investors

Investors buying into “pre-loved” "resale" endowment policy sees better capital preservation. They are unlikely to lose much capital (if any) as the distribution cost and fees are paid early during the initial years.

Having mentioned the above, there is still the risk of an insurer going belly up.

Hence it is important to find a Specialist in Such policies.

Current Progression in Singapore

TEPs first landed into Singapore sometime in 2007. This market was largely led by TEP Pte Ltd by Jay Nasir.

In the early days, TEPs marketed in Singapore are UK based policy. Hence the resale policies offered are in British pound (“GBP”) which subject investors to currency risk. 

Take a look at the graph here attached (from ExchangeConcersions.Com). You would see that whatever gains (8%) would have been negated by the exchange rates in GBP. This is probably why there was limited traction in Singapore.

In lieu of currency risk, a number of companies saw opportunities and have since started TEPs to deal with Singapore (mainly in SGD) issued policy.

2010 - Reps Holding pioneering Singapore Policy Market.

2012 - Purvis Capital followed closely. It is interesting to note that Purvis Capital was led by Mr Lim Wah Tong, Executive Director of Philips Securities Pte Ltd.

Between 2016- 2018

2016 - Conservation Capital - One the newer player in the market, they have a lot of marketing done on the radio for surrendering policies, managed by Mr Trevor Xie.

2017 - First Grand Capital moved into the market.

2018 - Eazi Capital was setup, and being a recent player did not listed much policies yet.


There are also a few companies like STEPS (Singapore Traded Endowment Policies Specialist) and TES Pte Ltd in the recent years.

Why it matters to me

Having been interest in the finance industry space (especially insurance) led me to dive deeper into TEPs/TLPs. TEPs seems to benefits all parties, whether be it the insurer, the client, or the buyer.

I.E If you are interested to know more about TEP, do contact PolicyWoke Pte. Ltd

#2ndhandInsurance #TEP #TLP #Buy #Sell #Surrrender #Insurance #Policies #Endowment #LifePlan #WholeLife #TermLife #Term #BTIR #TradedEndowment #Investment #2ndHand #Preloved #Resale


Recent Posts

See All

©2020 by PolicyWoke Pte. Ltd. 
PolicyWoke Pte. Ltd. (201936556K) is not licensed, approved, registered or otherwise regulated by the Monetary Authority of Singapore or any other applicable regulator in Singapore or otherwise in respect of any of its activities, nor does it hold itself out as being so licensed, approved, registered or otherwise regulated.
PolicyWoke Pte. Ltd. does not hold itself out to be carrying on any activities which would require them to be so licensed, approved, registered or otherwise regulated (including but not limited to regulated activities under the Securities and Futures Act (Cap.289) and financial advisory services under the Financial Advisors Act(Cap.110) of Singapore).