Smart Parenthood and Retirement with Resale Insurance Policies

Written by Purvis and Dreamer

This article narrates a story about a family with young children in Singapore and how the parents plan for the children’s education fund and their retirement fund. While we’ve tried to be accurate, remember that every family’s situation is unique. This article provides general information. For specific help, please seek professional advice and official resources.

Introduction

As parents, we want the best for our children. We dream of providing them quality education and ensuring a secure future, all while securing a comfortable retirement for ourselves. . But how can we achieve these goals while navigating the complexities of financial planning?

The Lims’ Current Portfolio

The Lims are a typical family of four: John and Emily, both in their early 40s, and their two children, Sarah (10) and Ethan (7). They’ve already taken important steps to protect their family:

1. Term Life Insurance: John and Emily have secured term life insurance coverage. In the unfortunate event of their passing, this policy ensures that their children will receive a lump sum payout, providing financial stability during a difficult time.
2. Critical Illness Coverage: The Lims understand that health uncertainties can impact their family’s finances. Critical illness coverage ensures that they’re financially prepared if any family member faces a serious health condition.
3. Medical Plan: Regular health check-ups and medical expenses are part of life. Their comprehensive medical plan takes care of hospital bills, doctor visits, and prescriptions.
4. Disability Plan: John, the family’s sole breadwinner, has disability coverage. If he’s unable to work due to an accident or illness, the disability plan provides income replacement.
5. Fixed Deposits: The Lims have wisely invested in fixed deposits, ensuring a stable and predictable return on their savings.

Introducing Resale Insurance Policies also known as Traded Endowment Policies (TEPS)

Now, let’s explore how resale insurance policies fit into the Lim family’s financial strategy:

1. Why Traded Endowment Policies (TEPs)?
   • What Are TEPs? TEPs, also known as traded endowment policies, are existing endowment policies sold by original policyholders to resale brokers. These policies are then resold as savings plans.
   • Why TEPs?
     • Low Risk: TEPs offer stability and predictable returns.
     • Shorten Tenure: Unlike traditional endowment plans, TEPs have shorter terms.
     • Attractive Interest Rates: TEPs often yield better interest rates than regular bank savings.
     • Protected by Policy Owners’ Protection Scheme: Your investment is safeguarded.
     • Issued by Singapore-regulated Life Insurance Companies: Trustworthy and reliable.
2. Planning for Education and Retirement
   • Children’s Education Fund: The Lims can use TEPs to build a dedicated fund for Sarah and Ethan’s education. As the policies mature, they’ll have a lump sum ready for tuition fees, overseas studies, or vocational training.
   • Retirement Income: TEPs can serve as a supplementary retirement income. By gradually cashing out policies during retirement, John and Emily can enjoy financial security without relying solely on their CPF savings.

Conclusion

The Lims’ journey continues, now enriched by resale insurance policies as they offer stability, attractive returns, and a strategic avenue for education fund creation and retirement planning.

Interested to know more about TEPs?

If you’re interested in Traded Endowment Policies (TEPs), checking out more details with Purvis Capital can help you to better understand and gain personalized insights into this innovative financial option and enhancing your financial journey.

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• Purvis Capital: We are the Specialist in Buying Your Life and Endowment Policies
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