How does REPS holdings earn money from buying over your insurance? - Seedly

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Seedly PFF 2019

Asked by Takingstock @

Asked on 02 Mar 2019

How does REPS holdings earn money from buying over your insurance?

I think the valuation of the policies are understated, but how do we know the true surrender value?


Answers (2)

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Javier Lim
Javier Lim
Level 5. Genius
Updated on 05 Aug 2019

From what i have gathered, they usually only accept policies between 10 to 20/25 years since inception. Usually the surrender values then are not high, so it's kinda like buying an undervalued property.

Of course another way of looking at it is that they are buying into the death benefit of the life assured and/or the participating subfund that the plan is written with.

1 comment

Takingstock @
Takingstock @

05 Aug 2019

I had read a bit recently. It opens up the view to see it as an alternative to bonds.

If you ever need more questions, do let me know. I am sorry to post this, but do join the group created for such opportunities

for Reps Holding and all, they do take the non-gauranteed portion. But if you need more info or is willing to look for partnership, do contact me on such arrangements.


Takingstock @
Takingstock @

15 Aug 2019

Have thought about this, but maybe not yet. Its a decent alternative to bonds (including SSB) but I think I can do better with reits. Need to consider the net balance between all the available tools. I am comfortable with stocks / reits and SSBs for now.
Loh Tat Tian
Loh Tat Tian

15 Aug 2019

No problem. Its quite easy to "cut loss" too if you find that the returns are not as good or fall below your projection.