Traded Endowment Specialists Offer Free Advice For Offshore Investors

by Carla Johnson, Investors Offshore.com

12 July 2001

In view of an increasing demand for traded endowment policies (TEPs) from the offshore investment community, Beale Dobie, a leading UK market maker in TEPs has produced a free guide for consumers to help explain the advantages and disadvantages of investing in the policies.

In addition to explaining just what TEPs are and how they work, the guide also covers the tax implications, the uses of TEPs such as retirement planning, how to gift the policies, and other frequently asked questions. The guide can be obtained by phoning Beale Dobie on +44 1621 851133.

Tracey Merritt, investment manager at Beale Dobie explained: 'The TEP market has grown from strength to strength since inception in 1989 and the figures for this year alone confirm the trend. One of the key drivers in the market's growth is the persistent demand for policies by expatriate and offshore investors and this free guide aims to address the questions we are often asked and highlights the many uses of a TEP investment.'

According to Beale Dobie, 30 per cent of endowment policies are cancelled in the first three years, 40 per cent are surrendered or sold and 30 per cent reach maturity. Around £1 billion of endowments are surrendered each year which could be sold for more on the TEP market. The average premium achieved over the surrender value is 10 to 15 per cent. About 1,000 people a week lose out by an average of £1,000 to £1,500 and the average policy sold has a surrender value of £10,000.

Beale Dobie, a subsidiary of Fedsure Investments (UK), was established 12 years ago to operate as a principal in the assigned assurance policy market, buying policies from policyholders and selling them to investors.

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