Investment International Offshore Banking, Offshore Funds & Offshore Online Banking
Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking Investment International Offshore Banking, Offshore Funds & Offshore Online Banking
Investment International Offshore Banking, Offshore Funds & Offshore Online Banking


Secure Offshore Investment

TEPs ideally suit the needs of investors who require a combination of safety and security together with growth. Such investors are often wary of investing directly in stocks and shares or in equity-linked vehicles. Those who invest in a TEP are safe in the knowledge that in most circumstances they cannot lose their initial investment provided that they continue to pay all premiums and they keep the policy in force until maturity. This is because the basic sum assured and bonuses allocated at the time of purchase are guaranteed - they are ‘locked in’ and together are often more than the initial purchase price of the policy. In addition, the expenses incurred in the early years of the endowment’s term have all been met by the original policyholder

Secure Offshore Investment - Traded Endownments

 Traded endowments are, therefore, popular as investments in their latter years when most of the investment growth takes place. They are also a potentially attractive investment for older clients as the new TEP owner becomes the beneficiary and any restrictions remain with the original life assured. Another important benefit is the flexibility of TEPs in providing investors with a lump sum tailored to their specific needs and at a price of their choice. There are TEPs available to suit all pockets.

Secure Offshore Investment - Geared Investments

Geared investments in a portfolio of TEPs have been increasing in popularity both in the UK and overseas. Essentially these are TEPs purchased with the aid of a bank loan. Overseas and UK banks are often willing to lend up to 90 per cent of the surrender value of the TEPs, thus allowing the investor to maximise the potential return on his investment by buying a larger number of policies. The investor pays all costs and premiums for all additional policies bought through the loan. This means that after paying the original capital outlay all future policy premiums and all arrangement and management fees are paid from the loan account. As policies mature the loan is reduced until it is finally paid off. The investor benefits from the maturity values of all remaining policies in the portfolio.

Over the last few years’ several collective investments have been launched in diversified TEPs portfolios. The Kleinwort Endowment Policy investment trust was the first on the market, and has since been followed by other similar products. These have helped significantly to broaden the range of potential investors. In addition, pension fund managers now represent an important part of the overall investment in traded endowment policies as they clearly understand the benefits of with-profits endowments and the stability and security they bring to an investment portfolio.

Secure Offshore Investment - Invest In TEPs

It is also possible to borrow to invest in TEPs against the security of other assets, such as property or stocks, where the purchase of a portfolio of TEPs, whether geared or not, can be used as part of an overall portfolio of investments.

Another recent innovation in the TEPs market is the ability to trade endowment policies online.

Launched last month, the TEP Exchange is an online supermarket for buying and selling policies that is designed to speed up the process. Currently, in order to trade TEPs, independent financial advisers are required to contact market makers individually - a process which means it can often take days to find the best price. This can now be discovered in a matter of minutes over the internet.

Secure Offshore Investment & Joanne Hindle

TEP Exchange marketing director Joanne Hindle said: “This technology, combined with the financial services expertise, is taking a 100-year old market and bringing it into the 21st century.” It’s also been welcomed by Paul Sands, chief executive of Surrenda-link, one of the UK’s largest policy purchasers, who described the innovation as “a major step forward in the expansion of the market.”


 

 


 

 

 

The above Article is from our News Archive

ADVICE TO READERS
While this website is checked for accuracy, we are not liable for any incorrect information included. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.

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