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Some Common Misconceptions about UK Traded Endowments Print E-mail

21 Mar 2008 - Reading postings made on various Internet Discussion Forums and Blogs, it is clear that very few people in Singapore have heard of or are familiar with UK Traded Endowments.

The problem is some of them despite having little or no knowledge about UK Traded Endowments, continue to comment on UK Traded Endowments, thereby spreading misconceptions about UK Traded Endowments inevitably.

1. TEP Pte Limited helps people in Asia, (inluding Singapore) to invest in UK Traded Endowment Polcies. When you invest in UK Traded Endowment polcies through us, you do NOT invest into a "Fund" (as commented by some).

Your counterparty is the UK Insurer, not us. We are only helping you to coordinate and facilitate the process of you investing into UK Traded Endowment, so as to make the entire process hassle free to you.

Bascially as an investor, you take over the ownership of existing UK Endowment Policies, which might have accumulated 15 to 20 years of Cash Value. There are NO annual management fees and other similar charges imposed by Funds and Unit Trusts.

The Accumulated Cash Value is a GUARANTEED amount by the UK Insurer that will not reduce/decrease no matter what happens in stock markets and financial markets. Amidst current uncertainties in the Global Stock Markets, where some Singapore stocks have fallen in prices by 30% to over 70% in the last few months, the Guaranteed Cash Value of an UK Traded Endowment provides you, the investor, invaluable peace of mind and security.

2. The Formula Maturity Value of UK Traded Endowments are calculated based on the Current Bonus Rates declared by UK Insurers, not plucked from the air. You can easily go to any UK Insurer's website to check out their track record in giving out bonuses, so that you have a better idea whether this UK Insurer would be able to continue to give out bonus (as they currently give).

The Fact is most UK Insurers have been established for a long time, some have track record of over 100 years to speak of.

3. What is the Worst Thing that can possibly happen when you invest?

The worst thing that could happen is the collapse of the Financial Institution. In Singapore, your Bank Deposits with a Singapore Bank is only Protected up to a maximum cap of S$20,000 per bank. Foreign Currency Deposits in Singapore currently enjoy ZERO protection.

Thus, if you have S$2 million placed with a bank in Singapore, in the event of the collapse of the financial institution (low likelihood), you will only be compensated S$20,000 or 1% of your deposits.

Whereas for UK Traded Endowments, under the Protection of UK Financial  Services Compensation Scheme, even if an UK Insurer collapses, you'll be compensated at least 90% of the Cash Value of the policy, with NO maximum Cap.

Thus, if you own a UK Traded Endowment with a Cash Value of S$2 million (equivalent), you'll be protected for at least 90% or S$1,800,000!

Many investors from Europe have flocked into investing into UK Traded Endowments because of this Strong Protection available for UK Traded Endowment.

On the other hand, if you invest in an Endowment Policy by an Insurer in Singapore, you enjoy ZERO protection.

This goes to show that UK Traded Endowment actually offers Higher Protection compared to Singapore Bank Deposits and Singapore Insurance.  

3.  Another misconception is that UK Traded Endowment is New and has no track record.

UK Traded Endowment has been etablished in UK for more than 25 years and is highly regulated by UK Financial Services Authority (equivalent of MAS in UK). UK has several measures in place, including Financial Services Compensation Scheme to safeguard and protect the interests of investors.

If you like to find out more CORRECT Information about UK Traded Endowment on a no-obligation basis, you can call us at +65 6883 2235 or email us at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Be very CAREFUL of reading the comments made on UK Traded Endowment on various internet forums and blogs by people who know little or nothing about UK Traded Endowment. Speak to us, the UK Traded Endowment Specialist today.

 
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