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A traded life policy is a whole life policy that its owner has sold to someone else by absolute assignment. The new owner pays any remaining premiums and receives the payouts, which for whole life usually come when the policy is surrendered later or on the death of the life assured.
Last reviewed 15 October 2026
The same sale process, with very different payouts.
| Traded life policy | Traded endowment policy | |
|---|---|---|
| When it pays out | On death, or when the new owner surrenders it | On a fixed maturity date, or earlier on death |
| What sets its value | Cash value and how it is projected to grow | Maturity value and the years left |
| Main risk MoneySense names for investors | Life extension: the payout may come much later than expected | Liquidity and the insurer's credit |
| What the seller gives up | Life cover, usually for good | The maturity payout and any cover until then |
A traded life policy pays its new owner when the life assured dies. That is why we value whole life on its cash value, never on anyone's health, and why we ask sellers to think about their cover before anything else.
We look at participating whole life policies case by case. Selling a whole life policy · Replace your cover first
After the sale, the death benefit is paid to the new owner, not your family or nominee.
Only the owner changes. If you and the life assured are different people, talk to them first.
MAS does not regulate the sale, purchase or distribution of traded life or endowment policies. What that means
A sale is only worth it if the written offer beats your net surrender value. Sell or surrender?
A whole life policy that has been sold to a new owner, who pays any remaining premiums and receives its payouts.
Yes, by absolute assignment, subject to the policy's terms and any trust nomination. Is selling legal?
No. We use only the date of birth on the policy, and value it on its cash value.
Specialist buyers and investors. Fewer buyers take whole life than endowments. Who buys policies
MoneySense: Traded life policies and traded endowment policies (checked 15 October 2026)
We tell you whether we would buy it, with the surrender value beside our price. No NRIC, no obligation.