What is TLP and TEP?
Benefits of Investing in a Traded Policy
What is TLP and TEP?
What are Traded Life and Traded Endowment Policies?
It is a participating life insurance plan (e.g. Whole life or Endowment) that has been given up or sold by the original policy owner to an investor or company other than to the insurer. Therefore, these traded plans are commonly known as “second-hand life policies” or “second-hand endowment policies”.
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Case Study of A 25 year Endowment Plan
Andy (the original policy owner) started a new 25 year endowment plan in year 2001. After paying for 15 years, Andy decides not to continue the plan further.
Peter (the investor) comes in year 2016 to take over the plan. Both the ownership and benefits of the policy are transferred from the original policy owner to the Investor. The investor continue to pay the policy premium just as if he were the original policy owner. At maturity, Insurance Company must pay out the benefits (monies) based on the terms of the policy contract to the Investor.
