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REPs - Buying Resale Endowment Plans

Many people might not know that they can actually buy resale endowment plans from various companies.  This is usually not sold directly from insurers but are instead sold by companies like REPs Holdings which buys endowment plans from people and sell it onward to other people who might wish to purchase these "used" endowment plans.  

What is clear is that these plans do not provide any form of insurance as the insured person remains as the original policy owner who bought the plan from the insurer.    After paying it for a few years, the original policy owner probably does not wish to pay the premiums anymore but instead of surrendering it to the insurer, they can sell it to another individual who is willing to take on the premium payments and of course benefit from the final guaranteed/non-guaranteed amounts that come at the maturity of the endowment plan.  

The original policy owner benefits since he/she is probably able to get a much higher cash value from selling the endowment plan mid-term instead of cashing it in directly with the insurance company.

As any policy owner will probably find some difficulty getting a buyer to take over their endowment plan, there are these companies such as REPs Holdings which will act as the middleman and take over the policies, selling it onwards to anyone else who wants to buy them.  These endowment plans usually offer no protection value but might offer a higher return as compared to a brand new endowment plan since their maturity date is much shorter as compared to buying an exact same plan directly from the insurer.

This is definitely not a common way of buying endowment plans amongst most people.  But it is an option that one might consider if they are looking for a pure returns product that offers a return slightly higher than fixed deposit.  

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