Traded endowment policy market-maker Policy Portfolio is offering a free
guide to help IFAs explain the benefits of Teps to their clients.
Policy Portfolio says Teps let IFAs provide clients with two distinct
opportunities to make money.
First, it says clients wanting to surrender with-profits endowment
policies may be able to get substantially more than the life office
surrender by offering their policies to a market-maker.
Second, Policy Portfolio says IFAs can offer Teps as a low-risk flexible
investment with high returns to clients looking to invest.
Policy Portfolio says each year £1.2bn of whole-life and
with-profits endowment policies suitable for trading are cashed in.
It estimates around £700m of these are surrendered back to the
originating life office while on average each policyholder may have got an
extra £1,250 if they had sold their policy to a market-maker.
The guide tells IFAs how they can help clients inc-rease the amount they
get and says Policy Portfolio is often able to improve on the life
company's surrender value by an average of 10-15 per cent and sometimes as
high as 50 per cent.
Policy Portfolio says clients looking to invest have the flexibility of
being able to choose when they want their policy to mature and the balance
between initial capital investment and ongoing premiums.
Marketing director Brian Goldstein says: “The Tep market is rapidly
expanding and our pack of free guides should help IFAs explain the
opportunities available to their clients.”