Sell Endowment Policy

We Buy Your Life & Endowment Policies

Do You Know What Types of Insurance Policies Can be Sold?

Commonly, Funds and life policy as they are can be sold assignable.

Insurance savings schemes are also called endowment policies. A customer usually pays a monthly or annual fixed sum until the policy matures (specifically when the policy ends).

In the policyholder’s maturity, if the policyholder outlives the maturity date, he/she will get back the assured sum of money, also recognized as the maturity benefit. If the policyholder passes away ere the policy matures, they will give coverage for his/her dependents.

On the other hand, in whole life policies, the policyholder shall be covered after the death, typically in the form of fixed payments, by the policyholder’s dependents.

They presumably told you to buy insurance policies, but do you know that you can also sell insurance policies?

Reasonably, certain situations that arise may cause you to consider cancelling your insurance policy.

For example, you may need cash urgently and can no longer sustain the policy.

Other times, circumstances such as reduction or divorce may be the reasons why you may require to give up your policy so that you may split your assets & re-plan your finances, respectively.

Another instance is that your policy has reached a break-even point (specifically, cash value of policy = premiums paid). Thus you wish to terminate it. This is particularly if the insurance coverage does not seem to be as acceptable anymore.

To terminate or discontinue your insurance policy, you usually have two options:

  1. Surrender your policy; or
  2. Sell your policy.

This article will talk about the sale of insurance policies in Singapore. To learn more about business loan, contact us.

What Would Happen When I Sell My Insurance Policy?

When you sell your insurance policy, this policy is being given to a third party who will then take over your duties (e.g., continue to pay the future monthly premiums).

These third parties can either be the vendor/broker you sell your insurance policy to (e.g., marketplaces that buy or sell insurance policies) or a party sourced by the vendor.

In exchange, you get financial benefits according to the valuation of the insurance policy at that point in time of selling it (specifically, the policy’s current value).

If you decide if your policy will be sold or not, these factors should be kept in mind:

Pros Cons
You get paid more value than surrendering your insurance policy. You will miss the insurance coverage once the policy is sold.
You will get an upfront payment (either in cash or cheque). If the policy you are selling is a life policy, a third party may benefit upon your death.
The selling process is relatively fast and straightforward to complete. The selling of insurance policies is not regulated by the Monetary Authority of Singapore (MAS).

How Old Does the Insurance Policy Have to Be Before I Can Sell It?

If you have held the policy for at least 1/3 of its duration, third-party vendors may be interested in buying these policies. Though, the vendor may be willing to take over a newer approach if it is:

  • Limited pay (e.g., the premium payments are front-loaded to the first five (5) to ten (10) years of the policy’s life, for a 20-year policy)
  • Single premium (i.e., the premium payment was made in a lump-sum at inception)

Can I Still Sell My Insurance Policy If I Had Missed Out On Premium Payments?

Whether you can still sell your insurance policy if you had missed out on premium payments would depend mainly on the extent to which you had defaulted on these payments, such as the length of the period of default and the amount overdue.

The insurance policies usually take up to thirty (30) days to make payments missed from the last due date. The insurance company that terminates your policy is likely not to make payments by the end of the grace period.

When your policy is terminated correctly, then you can no longer sell your policy.

However, suppose your policy has enough cash value for an Automatic Premium Loan (taken by the insurer against the cash value). In that case, your policy will still be in force & not terminated. In this case, it may still be likely to sell your policy for insurance.

It will probably not be possible to pay the premium considered when the third-party vendor makes a valuation of your policy (specifically, you will likely get a lower amount).

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FR Capital Policies vs. Singapore Fixed Deposit Rates

Many invest in bank fixed deposits & treat them as the most secure place to store their savings. Though, fixed deposits should primarily be viewed as a place to store money to preserve the capital rather than a means to create long-term wealth. Fixed deposits suit ultra-conservative investors as they do not settle for anything other than fixed and guaranteed returns with high safety.

Though ultra-conservative investors should look at trade insurance policies that give you higher returns and policies are also backed by SDIC in the event of default of insurers. Read more on the SDIC website.

Effective date, March 2020

FR Capital Policies vs. Singapore Fixed Deposit Rates

12 mths 18 mths 24 mths 36 mths 48 mths 60 mths
Cash Deposit  Over $20K (% p.a.) 1.40% 1.40% 1.40% 1.40% 1.40% 1.40%
FR Capital Traded Policies (% p.a.) 2.50% 2.50% 2.50% 3.00% 3.30% 3.50%

Are you selling your insurance? We’ve made selling your insurance as simple as possible.

While your initial thought on the process of selling your insurance policy may be to head down to your insurance company, this is needed only later on in the process.

Alternatively, you should first obtain a valuation that you are content with by approaching one or more third-party vendor(s).

The following outlines the course of selling an insurance policy:

  1. Source: Find a suitable & trustworthy third-party vendor in the market.
  2. Valuation: Send in the relevant information needed by the vendor for valuation. The insurance policy itself is the essential piece of document required for valuation. It should add information such as the start and maturity date, sum assured premiums, and surrender value (see below). Vendors usually offer the valuation for free.
  3. Review offer: The salesperson will return to you on their request. You can decide to continue selling at this point.
  4. Transfer: You can complete the transfer of policy ownership in 30 minutes at the Insurance company. Once this is finished, you will no longer have any outstanding obligations under the policy.
  5. Payment: Depending on the vendor, you will earn upfront payment either in cash or cheque.

What Are The Alternatives to Selling My Insurance Policy?

Surrendering my insurance policy

As mentioned beforehand, if you are looking to end your insurance policy, the alternative to selling it is to surrender your insurance policy.

Surrendering a policy involves you directly ending your policy with your insurance company. When this occurs, you will lose all the benefits under the policy.

Just like selling, surrendering your insurance policy may also enable you to receive a sum of money. This is called the cash surrender value. Though, this entitlement is dependent on your policy type.

Here are some pros & cons of surrendering your insurance policy:

Pros Cons
Relatively simple and straightforward process, which mainly requires you to contact your insurer directly. The policy type may not qualify you for any cash surrender value. For instance, whole life insurance comes with a cash surrender value, but not term life insurance.
The selling & assigning of an insurance policy may let a third-party benefit from your (i.e., the insured’s) death. There is no such discomfort by surrendering your policy since all the benefits under the policy cease to exist. The value of cash surrender (if any) cannot be as high as the cash-back value of third-party sells that purchase insurance policies.
Suppose you wish to buy back the insurance policy again in the future. In that case, the insurance company may not offer you a similar level of protection or returns for the same policy type.

What Would Happen If I Had Included My Insurance Policy in My Will?

If you previously included in your will to give your insurance proceeds after your death and insurance policy (which you had sold or surrendered), this donation will be invalid.

The reason is that the insurance policy is terminated, and it does not exist as described (whether by surrender or sale). Nevertheless, you could, for example, include an alternative clause from the on-set when planning your will to cater to such a situation.

To guarantee that you have provided for the possible circumstances that may arise concerning your insurance policies, consider getting professional legal advice from one of our will’s lawyers to assist you in your will-making.

Consider selling this to Endowment Exchange if you have a policy of endowment you have chosen to sell. Endowment Exchange purchases over existing endowment policies at prices higher than their surrender value, giving you more extra cash than if you were to surrender your approach to your insurer.

Terms & Conditions

1.1 The “Gift” refers to (up to) S$100 in cash.

1.2 The “Cashback Schedule” refers to the following:

Policy’s Surrender Value
(at the time of policy reassignment)
Cash Gift
Below S$20,000 S$50
S$20,000 and above S$100

1.3 The “Promotion Period” is between 11 November 2020 – 31 December 2021, all dates inclusive.

1.4 “Eligible Applicants” refer to individuals who meet ALL of the following conditions:

  • The Applicant was referred from The Applicant submitted his/her contact details and policy details AND indicated that was the referral source when submitting a price quotation request to Endowment Exchange. The cost quotation request may be sent via:
  • Executed a strong policy reassignment with Endowment Exchange.
  • Emailed a copy of the completed Sales & Purchase Agreement to (Applicant may redact any confidential information from the Sales & Purchase Agreement before emailing it to
  • 1.5 Completion of policy reassignment must be completed before 31 December 2021, 2359h. Approval of the Gift for any policy reassignments after the cut-off time will be subjected to final approval by

1.6 The credit of the cash rebate will be made via PayNow or Bank Account transfer. The Applicant will be needed to confirm their PayNow or Bank Account details via an email.

1.7 Eligible Applicants will receive the Gift within a month of confirming their PayNow or Bank Account transfer details. Applicants who have yet to get the Gift within that time may contact us via email at


2.1 The promotion is open to all individual Singapore citizens and residents of the Republic of Singapore who are (i) aged 21 & above at the time of policy reassignment (if the Participant is under the age of 21, permission had been sought from parents or legal guardians before participating or submitting any personal information), (ii) not forbidden in any manner by any entity, person, authority or law from participating in this promotion or any similar promotion.

2.2 reserves the right to reject any claims of eligibility for the Gift if the application was found to be made via other channels.

2.3 In the event of any dispute,’s decision shall be final & binding, including deciding whether a claimant or claim is eligible under these Terms.

2.4 reserves the right to change, add, cancel & otherwise modify any of the above Terms and Conditions stated above at any time without prior notice.

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Get to know insights into the workings of the traded endowment and insurance industry.

If so, do you often buy items just for the sake of buying? Even if you don’t need them, why not? As a result, you cannot save for your future needs. A habitual spender is someone who would benefit from endowment insurance.

Investing in an endowment policy with a life insurance company is an example of this type of investment. Month-to-month payments are made, and the money is invested. An end-of-term payment is then made, usually after 10 to 25 years.

A beneficiary would receive the lump sum if you died before the end of the term.

In essence, an endowment policy is a life insurance policy that helps the policyholder save regularly over a specified period of time to receive a lump sum amount at the policy’s maturity if the policyholder survives the policy’s term of insurance. You can use the money at maturity to meet various financial needs, such as funding retirement, children’s education, and marriage, or purchasing a home.

A life insurance endowment policy pays the entire sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder at maturity if they survive the policy term, whichever comes first.

Payments made regularly (monthly or annually) are used in two ways. An insurance policy receives a portion of your payments; the rest is invested, usually in stocks and shares. Annually, periodically or at the end of the term, you will receive a bonus payment if your investments perform well.

The amount of the lump sum depends on how well the investments have performed. You will also compensate your beneficiaries if you die prematurely.

An endowment policy includes life insurance, which means it will payout if you die while the policy is in effect. You make regular payments into your endowment called premiums, which pay for your life insurance policy. The cost of this life insurance depends on your age, gender, and the length of the endowment required. The remaining money is invested either on a profit-sharing basis or a unit-based basis.

Our regular insurance policies are very similar to endowment plans. They provide you with a life insurance policy and help you save regularly, which is a valuable asset. As soon as the policy matures and the policyholder has lived through the policy term, the policyholder will receive a lump sum amount. You can use this amount to meet financial needs such as purchasing a home, children’s education, or retirement.

You can sell an endowment policy to a third party before the maturity date if you have one. If your statement shows it’s worth less than you imagined, or if you need the money before it matures, you might wish to sell.

Whoever purchases it becomes the insurance owner, which means they will receive the payout when it matures and will be responsible for paying the monthly premiums.

Third-party buyers are frequently ready to pay more for endowments than you might obtain if you asked your provider to cancel the policy.

It also means that instead of waiting until your endowment’s maturity date, which could be several years away, you could get a lump amount for it in a matter of weeks.

You can sell your endowment policy; in fact, there is a whole business dedicated to second-hand endowment policies. And selling a guideline rather than cashing it infrequently yields a higher return.

However, not all endowments are created equal. The second-hand market is only interested in with-profits and whole-of-life policies, so if yours is a unit-linked endowment, you won’t be able to take advantage of this alternative.

Also, the policy must have been active for a third of its term or a minimum of five years – your endowment, at 10-and-a-half years old, almost definitely meets this condition.

What Happens After I Sell My Endowment Plan?

As a result, when you sell your endowment plan, your policy is transferred to the person or entity that purchased it.

Your endowment plan’s coverage and benefits will be terminated as a result, even though you no longer have to pay the premiums for the policy.

At the very least, endowment plans offer a death benefit, even though they are primarily designed for saving purposes. There are also some endowment plans with riders, which provide payouts in critical illness, hospitalization, or accidents.

Before selling your endowment plan, you should make sure you have adequate protection.

When Should I Sell My Endowment Plan?

Your endowment plan is one thing that you should never give up on. You are virtually guaranteed to lose money.

Try to maintain your endowment plan if at all possible You may be able to withdraw a portion of your policy’s accumulated value to pay for your premiums, for example.

To keep up with your endowment plan, you shouldn’t borrow money or get into debt. As a result, you’ll be required to pay a lot more in interest on your debts than the returns provided by your endowment.

With that in mind, you may want to consider selling your endowment plan under the following circumstances:

  • An emergency requiring immediate funds
  • Unexpected relocation or migration
  • Opportunity to invest funds in better-performing investments
  • Repayment of debt

As long as you keep this in memory, selling your endowment plan will allow you to make the most of a bad situation. Whether you sell it or not, you will rarely make money by terminating your endowment plan early.

Endowment plans are designed for long-term savings, so make sure you can commit to the entire term of the policy before enrolling.

When can you surrender an endowment policy?

 Unassured individuals who stop or cancel their endowment policy before its maturity date are entitled to a portion of their premiums paid back. This lump sum is referred to as the surrender value’ (or surrender value).

There are two types of surrender values: the guaranteed surrender value and the non-guaranteed surrender value. Your surrender value is calculated by adding all of your premiums paid up to the total amount of your surrender value. But it’s common for an insurer only to cover a portion of the tips that have been paid since the start of your plan. Add up the total premiums paid and multiply it by the surrender value rate offered by your insurance company. This is the non-guaranteed surrender value.

When it comes to most insurance companies, you must contact their customer service department to cancel your policy. In general, you must follow the steps outlined below.

  • Contact your insurance provider’s customer service department
  • Provide your personal credentials and account details for validation
  • Fill out the necessary documentation
  • Submit documentation

Your plan may come with fees if you decide to terminate it. Ask your insurer if you have considered all costs before you decide to cancel your policy.

Beware of single-income dependency! To become rich, Warren Buffet advised investors to “invest to create a second source.” They must make your savings in a disciplined manner if you want to accumulate wealth. You can also create wealth over time with endowment policies, which encourage regular savings.

As well as life insurance, endowment policies offer coverage for a fixed period of time. You can protect your family financially against the uncertainties of life with an endowment plan. Out of the box, the returns can help you achieve your long-term financial goals, such as a dream home, your child’s education, your retirement, and many other things. Also, if you find yourself in a financial bind, you can borrow against your policy to help you out.

You can also claim a tax deduction of up to 1.5 lakhs for your premiums paid under Section 80C of the Income Tax Act of 1961. The maturity amount is also tax-free* under Section 10(10D).

You can achieve your dreams with the help of endowment policies, which offer several benefits. There are different endowment plans, and you need to know which one best suits your needs before you buy. Here’s a quick guide to the basics.


Many endowment plans offer a guarantee of a certain amount at the end of the policy term. Unfortunate events in this period are covered by the insurer, who pays this sum to your nominee.

This is because the insurer provides you with additional money in the form of bonuses after the policy has matured.

You can earn a lot of money with total endowments over time.

Low-cost Endowment

The premium amount is lower in this plan and helps you save future payments due after a certain period. The insurer guarantees the amount your nominee will receive in the event of a claim. Annual bonuses also increase the amount payable to you at maturity.

The primary goal is to establish a fund within a specific time range. You can use this form of an endowment to finance loan repayments or specific life goals.

Unitized with-profit endowment plan

These plans combine ULIPs’ great earning potential with guaranteed returns to protect your investments from market swings.

The capital market determines the profitability with these strategies. However, with an assured payout at maturity, these plans mitigate the impact of market downturns. You will receive this guaranteed repayment regardless of the volatility in the capital market. And your candidate receives this sum in your absence.

As a result, you can consider this product to be a risk-free investment with excellent profit potential.

Non-profit endowment

This policy provides a defined lump sum amount to you upon maturity or to your nominee in the event of a catastrophic event, whichever occurs first. Because the insurer does not provide bonuses with such plans, the payout amount remains static.

As a result, these plans are suitable as safety nets for your family in the event of financial trouble while you are away.


Endowment plans are an excellent choice if you want the triple benefits of investing, insurance, and tax savings. When considering purchasing one, consider the ICICI Pru Lakshya Lifelong Income plan, which offers assured profits. The amount you invest is safe since the guaranteed sum is guaranteed at maturity.

Your fortune will rise as you receive bonuses regularly. Having a consistent source of income till the age of 99 assures financial independence even after retirement. All of this, combined with the added benefit of the financial security provided by a life insurance policy, makes this policy an all-rounder. It enables you to fulfill all of your financial objectives at once. Invest today for your loved ones’ safe and secure future.

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About FR Capital

FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.