Endowment vs Resale Endowment, made easy?

 New endowment vs Resale endowment

Thought it would be good to share.

I like Resale Endowment better as it fast-forward policy maturity and better payout due to shorter tenure takeover.


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1.  What is difference between Annuity n Endowment? 

From web search, most annuity plans pay a regular income for as long as one lives.

On the other hand, endowment plans are typically insurance policies which help you to save.

However, the difference between such plans is getting increasingly blurred as insurers respond to market demands and become more creative with their product offerings.

It is now common to find Endowment plans that have features which also pay a regular income over a fixed period.


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2. What brands of annuity do u recommend?

This era I wouldn't buy annuity for now. T-Bills and FD returns are better for now.

I have leveraged annuity,  like GE/PLG6 or PLR6.  (I earlier bought PLG1 & PLG3). Pay in single premium & loan the rest. You can pay in full, but leveraged return is better.  

I am not worried yet of current high loan interest rate.  I think that it won't be sustainable over many years. My opinion only; unless over-leveraged beyond our means.

Just continue to pay loan interest, and yet enjoy monthly payout for lifetime).  It can also be for 3rd Generation bequest.

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3. For policies, why do u recommend resale policies, and where do u get them from?

For Resale endowment policies, there are 7 Middlemen.  They buy the Policies from those who surrender to them, then resale to you.

These transactions are handled at the Insurer Branches; totally official and reliable. 

I would recommend Conservation Capital (CC) and TES Capital.

I bought my 7 resale policies from them.   CC n TES are lean companies, so their profit margin is reasonable. I calculated IRR of those resale endowment vs new endowment. Resale's give better IRR and faster to mature as you buy in mid-way into the policy.

Should you decide to buy from them, just mention me "Mr Ferrari" as introducer.  I don't gain anything but they may give you better offer, hopefully.  

Others are bigger corporations, so need bigger cost margin to resell to you.

4.  Do you buy resale policies for death/tpd/ci?

Or more for investments like endowment?

Let CC n TES enlighten you.  They are usually very friendly people.

When I buy over resale policies, the death, tpd & ci are still covering under the Initial Assured.

Only if they or relatives claim on Death, TPD or CI unknowingly, we will benefit from their supposed claim.

Should the Insurer come to be aware of their claim through other policies that trigger, then we tio-bey-pio; prematurely we indirectly or directly "claim" the policies.  

The insurer will pay us like the Insured & terminates in accordance to T&Cs. 

CI is more tricky and I dont thoroughly understand it. 

But I have heard of someone benefited from such premature policies termination due to Assured death claim.  

In other words, you stop paying the resale policies, the policy then terminated and Death, TPD or CI Amount assured is then paid to you the Resale Buyer. That is my understanding.  

Of course, be kind and don't pray for it to happen to the original Assured.


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4. For endowments the returns are really low though. About 1- 2% guaranteed only?

Based on my knowledge, I am no insurance agent.

Less than 12-year policy:

Generally payout IRR is 1+~2+%.  I would recommend to topup in OA to earn risk free 2.5% interest rate instead.  Unless you are small nibbles to forced save to receive the payout in cash. Even so, pay your premium quickly within a short duration.  Such policies need time to accumulate.


15-year policy:

Generally IRR is about 2+~ 3+%, Insurer dependent.  Usually Insurer will pay near the upper Benefit Illustration (BI).  


20-year policy:

IRR is about 3+ ~4.2%.  

My recent 30-year INCOME SAIL policy matures.  


I would have gotten 4.08% IRR, but decided to surrender this month to receive it as a lump sum payout instead.  It's IRR is 3.49%; still better than OA 2.5% return.


Beyond 25-year old policy, I would not recommend it.  Even the Insurance company might not even survive the mkt & risk poor maturity payout.


Above for sharing only.  Pl do your own research.

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