Frequently asked questions by Investors
1) What is a Traded Endowment Policy TEP
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A Traded Endowment Policy (TEP) is an endowment policy that the original policyholder has sold by absolute assignment of all future benefits. "Traded endowment policy" is merely a fancy way of saying second-hand endowment policy. Singapore Traded Endowment Policies (STEPS) are Singapore TEPs.
2) Why should Investors invest in STEPS?
a) Investing in Singapore Traded Endowment Policies(STEPS) is very safe as long as you hold the endowment policy to maturity date. We acquire endowment policies from policy owners (who decided to give up) and ensure that these policies have good titles before making these endowment policies for thinking investors who want a better way to save by transferring the policy to them.
b) It's a smarter way to save. You can get better interest rate returns in shorter time period. You can get up to 40% returns in 10 years.
c) No worries and hassle free.
d) It's a smart way to grow your wealth. Steps Specialist can help you because we started off as investors
ourselves.
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​3) How is the transfer of ownership of endowment policy done?
The transfer of ownership is through absolute assignment. It is done at the Insurance Company Customer Service center. Absolute assignment, the transfer of ownership, is governed by the laws of Singapore and is registered and endorsed by the insurers using standard procedures by the respective Insurance companies.The transfer is irrevocable and another absolute assignment has to be executed to effect another transfer.
4) What is an assignment?
Assignment of a life insurance policy means transfer of rights from one person to another. You can transfer the rights on your life insurance policy to another person/entity for various reasons. This process is referred to as Assignment and is governed under Policies of Assurance Act (Chapter 392). The person who assigns the insurance policy is called the Assignor (policy owner) and the one to whom the policy has been assigned, i.e. the person to whom the policy rights have been transferred is called the Assignee.
Under the Singapore law, only the assignee can give a valid discharge of all payment obligations to the insurer.
5)How will the payment be?
An initial sum to be paid to "Steps Specialist" for transferring the ownership of the policy to you. The preferred method of payment will be Cashier's order. After the transfer is made, the Insurance Company will inform you officially that you are the new policy owner and future premiums are made directly to the Insurance Company.
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6) Is there any nomination or beneficiary to the Policy?
The Insurance Company requires any nomination or beneficiary to be revoked or removed first prior to Assignment. As Steps Specialist is the current policy owner now, the policy is free from nomination or beneficiary.
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7) What about the death benefits?
All rights and benefits belong to Assignee i.e. the new policy owner and only the policy owner can give the insurance company a valid discharge.
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If the Insurance Company gets to know the passing on of the life assured, they will contact the Assignee for the sum assured payout. Otherwise, you will just continue with the premiums till maturity date and get the maturity payout.
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8) How do I receive the maturity payout?
About one month before the maturity date, the insurance company will send out a letter to you. The usual payment method is a cheque issued by the insurance company to the policy owner at the mailing address as registered. Other form of payments can be arranged with the Insurance Company.
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9) What happens if I pass away before the maturity of policy?
Just like your other assets (money in the bank, house, investments), the policy still belongs to you and will remain in force. The executor of your estate can surrender, sell, reassign the policy and payment will go back to your estate.
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10) Is Steps Specialist licensed by the MAS?
No, Steps Specialist is not an insurance company or a financial adviser. Steps Specialist is an independent service provider for Singapore traded endowment policies. Singapore endowment policies originally issued by Insurance companies are regulated. Absolute assignment, the transfer of ownership, is governed by the laws of Singapore and is registered and endorsed by the insurers using standard procedures by the respective Insurance companies.