Types of Second-Hand insurance, Resale Endowment plans, or Traded Endowment plans. (REPS/TEPS)
1. Regular Pay (RP)
Annual Premium are paid regularly to the policy for the remaining term. Ideal for individuals with a regular income stream, RP gives the highest wealth accumulation effect.
2. Limited Pay (LP)
Annual premiums are paid to the policy for part of the remaining term. Ideal for individual who want a shorter premium payment commitment period.
3. Anticipated Endowment (With Cashbacks) (AE)
AE include a cash benefits component, making it ideal for individuals who prefer liquidity and flexibility. The cashbacks can serve as emergency funds, as it can be withdrawn at any time if needed.
4. Fully Paid (FP)
FP are plans where the premium has been paid in full, eliminating the need for ongoing premium payments. Ideal for individuals with disposable income looking to make a single investment.
5. Annuity Plans (AEFP)
Annuity plans are passive income plans. This gives passive income to the policy holder and is wonderful for retirement. For such plans, the preference is as long as possible of passive income, which preferably last to the end of one’s life and helps in passive income when one stops working. Besides, the returns on these plans are tax free and highly reliable as they are issued by a local insurer. A favourite for property investors as the yield is probably on par or better then real estate rental yield, without a need for paying of conservancy fees, real estate agent fees or property tax.
