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A traded endowment policy, or TEP, is an endowment that its owner has sold to someone else. The new owner pays any remaining premiums and receives the payout. When the policy sold is a whole life policy, it is called a traded life policy, or TLP.
Last reviewed 15 October 2026
The insurer stays the same and the policy keeps running. Only the owner changes.
Accepts a written offer and signs an absolute assignment on the insurer's form.
Becomes the new owner, pays any premiums still due, and waits for the payout.
Receives notice of the assignment and pays future benefits to the new owner.
An insurer sets surrender values for people who leave early, and they are usually well below the maturity value. A buyer who is willing to wait for maturity can value the policy on what it will pay out, so for some policies it can offer more than surrender value.
The intermediary “usually offers to buy the policy at a price higher than the policy’s surrender value.”MoneySense, on traded policies
Usually is not always. Early in a policy, or with a large loan, no buyer may beat surrender value. How we value a policy
Compare any written offer with your net surrender value, and take the higher.
The maturity payout and any death benefit go to the buyer.
MAS does not regulate the sale, purchase or distribution of these policies. You can still seek recourse under the Consumer Protection (Fair Trading) Act. What that means
Company name, UEN, written offer, payment from a company account into yours. How to check any buyer
For anyone thinking of buying a traded policy, rather than selling one. We don't sell policies to investors.
For a traded life policy, the payout may come later than expected, with more premiums to pay meanwhile.
A traded policy can be hard to sell on before it pays out.
The payout depends on the insurer being able to pay.
A policy in a foreign currency can lose value when converted.
A policy can be voided if the insurer finds it was obtained improperly.
MAS strongly encourages investors to deal only with individuals and companies that are regulated by MAS.
No. Surrender ends the policy with the insurer. A sale keeps it running under a new owner.
Yes, a policyowner can transfer a policy by absolute assignment, subject to the policy's terms and any nomination. Is selling legal?
Specialist companies and investors, sometimes through brokers. We buy with our own money. Who buys policies
Mostly participating endowment and whole life policies with a cash value. The policies we buy
MoneySense: Traded life policies and traded endowment policies (checked 15 October 2026)
We tell you whether we would buy it, and show our offer beside your net surrender value. No NRIC, no obligation.