There is a website service (in the UK) that allows a policyholder to find someone who is willing to buy his endowment policy for a better price than the cash value offered by his insurance company.
The advertisement says:
* We offer an exclusive 'execution-only' service for people wishing to sell their unwanted endowment policies.
* Shop around the endowment marketplace in order to try and find you the best offer for selling your endowment policy.
* We will usually get you a number of offers for your endowment policy.
This is how the "trading" works. The insurance company has a monopoly of your endowment policy, and will offer you a poor value. This allows them to make a profit when you surrender your policy.
By approaching the market place, you may be able to find another buyer who can give you a higher value. They will keep the policy till maturity and still make a profit over their funding cost.
I believe that someone tried to introduce this service in Singapore. But I am not aware if it has been successful.
Dear Mr. Tan,
ReplyDeleteI have tried to contact these people but the reply is that they only do it for UK based insurance companies. They have not heard of NTUC Income so it drew a blank. Do let me know if there is any company doing it in Singapore as I intend to sell my policies to them.
Dear Roger,
ReplyDeleteI am not aware about a similar service that is active in Singapore.
If you wish to surrender a NTUC Income policy, you will probably get a good cash value, close to the actuarial value of the policy (after deducting the expenses).
It is unlikely that a third party will give a higher value on the policy.
If you are interested to sell away your policy, please send me email to jason_goh68@yahoo.com.sg
ReplyDelete