Resale endowment consideration

Further sharing on Resale Endowments.

1. Possible to share what are the things to take note before taking up the resale endowment policy? 

Off my mind:

1. Budget  (if digestible).

2. Tenure.  Keep it short, within 5-7 years (if possible to lower risk)

3. IRR, learn to compute if it's true as per middleman computed.

4. Guaranteed vs non-guaranteed payout ratio.   This is dependent on insurer.  Only trust local ones, if possible.  If guaranteed can't even breakeven your total premium paid, then don't bother as it can be risky for me.

5. Those with annual cashback is better as it can lower your annual payout.  I usually reinvest the cashback, generally at guaranteed 3%~3.5%; I don't withdraw and collect it as higher maturity payout.

6. I buy policies long enough to trust that insures will pay nearer to higher BI.  But experience may be different.  

7.  I choose TES Capital and Conservation Capital. These are two of the seven middlemen which are smaller biz overheads.

8.  Please remember; like any investment, it has risks buying into endowments.   Risk like lower payout deviated from projected, insurers collapsed or buyout.

This Resale Endowment market is quite new, maybe about 10-years.  

So far, none of my Resale endowments has matured. It does have risks like usual policies we buy directly from the insurance company.

Should you buy, mention "Mr Ferrari"; I won't get commission, but you will get slightly better discount through my intro.

Caveat: I am no insurance agent.  You need do your own research n decision. And cannot blame anyone.


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