Teps: the way ahead

Traded endowment policies (Teps) are being seen as a shining light amid the uncertainty of the stock...

Traded endowment policies (Teps) are being seen as a shining light amid the uncertainty of the stock markets. Investors are seeing that policies nearing maturity, with many years worth of bonuses still locked in, represent excellent deals. Teps do not compete directly with other asset classes. Every one has a minimum guaranteed value made up of the sum assured, plus the bonuses that have accrued to date. These benefits often exceed both the initial purchase price of the policy and the premiums to be paid to maturity, so together represent a minimum guarantee that increases over time as bo...