Why this Asset Class
- No Currency Risk
Trade in Singapore Dollars instead of a foreign currency and avoid currency risks.
- Liquid and Flexible
Able to surrender or trade on Secondary Insurance Marketplace (SIMP).
- Tax Exemption
All proceeds from insurance payouts are not considered as income and thus are free from taxes.
- Capital Protection
Insurance policies that originate in Singapore are protected by the Singapore Deposit Insurance Corporation.
- No Health or Age Requirement
Anyone above 21 can invest in TEPs, TLPs, REPs and RLPs.
- No Yearly Management Fee or Service Fees
Unlike Unit Trust/Mutual funds, there are no management and/service fees.
- Cash Flow Planning
Premiums are known and fixed. Maturity payout, barring the death of the assured, are also known in advance. Thus, you are able to plan when to surrender and/or trade the policy.