Finance Watch

Trading in resale endowment and life policies carries risks

It may be time to consider drawing up a code of conduct for resellers of these policies

Say you have $10,000 in savings and you are looking to park that in an endowment plan.

Would you buy a new 12-year plan that gives you 3 per cent annual investment returns or a second-hand insurance policy for which you need to pay premiums for just four years to get at least a 4 per cent rate of return?

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A version of this article appeared in the print edition of The Straits Times on November 18, 2020, with the headline 'Trading in resale endowment and life policies carries risks'. Print Edition | Subscribe