Considering about selling off my endowment plans to a 3rd party, example repsholdings

Hi Khengli,

Before you consider selling off your endowment plans, these are the questions you might wanna think through:

• Have you calculated the opportunity cost (i.e. forward internal rate of return) in giving them up?

• Whatever investments you wanna get into, can it outperform the opportunity cost of your endowment plans?

• Have you consulted your financial advisor to see if there are alternatives to giving them up?

Disclaimer: PolicyWoke is a resale endowment plans broker

Some questions you should go thru before selling your endowment plan:

Single premium or regular premiums?

How long have you been paying for your endowment plan?

How many years more to pay?

What is the surrender value now?

Are you making a loss if you surrender now?

All the above questions are to establish how much is your involvement with the current endowment plan. You need to compare between continuing with endowment vs stop (either by surrender or selling) and invest the sum and subsequent premiums.

If you are making a loss if you surrender/sell now, you need to work out what kind of investment returns to achieve in order to recoup the losses and catch up with the returns you could get from your endowment on maturity.

Just take note that if you lose 20%, you need to gain 25% in order to recoup the loss.