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

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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. Subscribe