Looking for a High Yield Fixed Deposit account,
Why not invest in a Traded Endowment from a Singapore Insurance Company?
What is a Traded Endowment / Second Hand insurance?
Endowments are saving plans issued by insurance companies for the purposes of Savings and investments.
Traded Endowments occurs when the policy is transferred from the original policy holder to a new investor. As such, it is sometimes referred to as “Second hand insurance”.
Why are Traded Endowment’s an Attractive investment Option?
1) Reputable : These Endowments are issued by insurance companies based in Singapore such as NTUC, Prudential, AIA or Great Eastern. They are low risk, good quality investments with reputable companies.
2) Faster to Maturity: Endowment Plans are typically long term saving plans spanning from 10 to 20 years.
But you can pick up the policy half way. Instead of waiting 20 years for the policy to mature, you can pick it up say at year 16, and wait only 4 more years to maturity
3) Discount on Capital: Get it below the amount invested. There are cases where sellers are in distress. Because the original sellers usually have gotten a surrender value below what they have initially for the policy, you enjoy a savings on what they have put into the savings account.
They may have invested $20,000 into the policy, but are willing to let it go for $16,000 if you are willing to take over their policy.
This allows the new investor to get a higher returns due to a lower capital outlay.