Think about this scenario – you want to raise a few billion dollars to invest in a
global commercial enterprise. You have a few million dollars in your account, but
not nearly enough for what you need.
You put together a plan whereby as a licensed endowment or ‘defined benefit’
provider, you offer 30,000 policies each of a face value of $250,000.
You offer $75,000 to anyone who is willing to take out one of these policies for you
and then assign the policy back to you.
The bank promises to loan you around 60% of the face value of each policy
submitted, therefore you might receive $150,000 per policy from the bank.
You pay $75,000 to the policy holder and the other $75,000 is yours to invest.
$75,000 x 30,000 policies is $2.25billion. Small fry in the big bad world of the
money-changers.
When the policies mature in ten year time, the bank will receive a guaranteed
$250,000 per policy. That’s $100,000 profit per policy for the bank....nice work if
you can get it!
You have invested your $75,000 wisely in growth markets and after ten years
repay the bank loan. If you fail to repay all of the loan then the insurance
company has to cover the rest...(with a fight of course).
There are doubtless other fees to consider like re-insurance and commissions, but
this is a bare bones explanation and this kind of fundraising has been going on for
decades amongst the big league players in the financial world.
Where is this money invested and why suddenly are so many TEP’s being created?
global commercial enterprise. You have a few million dollars in your account, but
not nearly enough for what you need.
You put together a plan whereby as a licensed endowment or ‘defined benefit’
provider, you offer 30,000 policies each of a face value of $250,000.
You offer $75,000 to anyone who is willing to take out one of these policies for you
and then assign the policy back to you.
The bank promises to loan you around 60% of the face value of each policy
submitted, therefore you might receive $150,000 per policy from the bank.
You pay $75,000 to the policy holder and the other $75,000 is yours to invest.
$75,000 x 30,000 policies is $2.25billion. Small fry in the big bad world of the
money-changers.
When the policies mature in ten year time, the bank will receive a guaranteed
$250,000 per policy. That’s $100,000 profit per policy for the bank....nice work if
you can get it!
You have invested your $75,000 wisely in growth markets and after ten years
repay the bank loan. If you fail to repay all of the loan then the insurance
company has to cover the rest...(with a fight of course).
There are doubtless other fees to consider like re-insurance and commissions, but
this is a bare bones explanation and this kind of fundraising has been going on for
decades amongst the big league players in the financial world.
Where is this money invested and why suddenly are so many TEP’s being created?
Traded Endowment Policies - Explained
I have written about this before, but as we are at such a critical stage with several
of the programmes it’s worth taking another look at how they work.
There are plenty of people out there…..quite literally ‘OUT THERE’, who are quick
to shout ‘scam’ at the mere mention of traded endowment plans. These people
have learned that the Internet spells s-c-a-m and that no serious business can be
conducted within it.
This is a sad case, because the Internet is the media of choice for most financial
institutions. Its speedy and its reach is unmatchable. Every single day BILLIONS
of dollars, pounds, yen, roupees and sheckels are traded over the Internet. Yes,
there are many scams and yes, I too have been bitten by a few, but I have also
encountered some excellent money spinners that produce a tidy income.
What is an Endowment?
Quite simply an endowment is a form of life insurance designed to run for a
fixed term and frequently used to guarantee a mortgage.
Example:
You want to buy a house for $100,000.
You go to your financial consultant and take out an endowment policy for
$100,000.
This policy requires you to pay a monthly amount for a fixed number of years.
The policy guarantees to pay you, after 25 years for example, the face value of
the policy, sometimes it will pay out much more.
If you assign the policy to the mortgage company, they will accept that policy as
the loan security. You then only have to repay the interest on the loan (ONLY the
interest !!! - that's a laugh!)...plus you have to maintain the payments on the
endowment.
If you expire before the policy does then the endowment will repay the loan.
If you outlive the policy, then after the 25 years, the policy repays the original loan
to either you or the mortgage company if the policy is still assigned to them and if
the policy has earned even greater profit, then you get the rest.
This is all overly-simplified, but it forms the basis of most mortgages in Britain and
some mortgages in other countries.
If you sell your house you can continue paying for the endowment policy or sell it
too. Your endowment has a value on the open market and there are many
companies who trade solely in partly run endowments.
If your policy has been running for ten years, for instance, then it SHOULD have a
value considerably greater than the sum of the monthly payments. Obviously it
won’t be worth the final face value, but the purchaser now only has to wait fifteen
years to receive that $100,000. They are valuable assets!
The Perfect Scam?....or is it for real?
Q. Why would someone want to virtually give away $75,000 policies as seems to
be the case with Global Pension Plan and others?
I have written about this before, but as we are at such a critical stage with several
of the programmes it’s worth taking another look at how they work.
There are plenty of people out there…..quite literally ‘OUT THERE’, who are quick
to shout ‘scam’ at the mere mention of traded endowment plans. These people
have learned that the Internet spells s-c-a-m and that no serious business can be
conducted within it.
This is a sad case, because the Internet is the media of choice for most financial
institutions. Its speedy and its reach is unmatchable. Every single day BILLIONS
of dollars, pounds, yen, roupees and sheckels are traded over the Internet. Yes,
there are many scams and yes, I too have been bitten by a few, but I have also
encountered some excellent money spinners that produce a tidy income.
What is an Endowment?
Quite simply an endowment is a form of life insurance designed to run for a
fixed term and frequently used to guarantee a mortgage.
Example:
You want to buy a house for $100,000.
You go to your financial consultant and take out an endowment policy for
$100,000.
This policy requires you to pay a monthly amount for a fixed number of years.
The policy guarantees to pay you, after 25 years for example, the face value of
the policy, sometimes it will pay out much more.
If you assign the policy to the mortgage company, they will accept that policy as
the loan security. You then only have to repay the interest on the loan (ONLY the
interest !!! - that's a laugh!)...plus you have to maintain the payments on the
endowment.
If you expire before the policy does then the endowment will repay the loan.
If you outlive the policy, then after the 25 years, the policy repays the original loan
to either you or the mortgage company if the policy is still assigned to them and if
the policy has earned even greater profit, then you get the rest.
This is all overly-simplified, but it forms the basis of most mortgages in Britain and
some mortgages in other countries.
If you sell your house you can continue paying for the endowment policy or sell it
too. Your endowment has a value on the open market and there are many
companies who trade solely in partly run endowments.
If your policy has been running for ten years, for instance, then it SHOULD have a
value considerably greater than the sum of the monthly payments. Obviously it
won’t be worth the final face value, but the purchaser now only has to wait fifteen
years to receive that $100,000. They are valuable assets!
The Perfect Scam?....or is it for real?
Q. Why would someone want to virtually give away $75,000 policies as seems to
be the case with Global Pension Plan and others?
| Traded Endowment Policies Explained (sometimes referred to as Reverse Pension Plans, RPP's, Defined Benefit Plans or TEP's) |
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If you have any questions about TEP's
just click here
I always answer....even if I don't know
the answer!
just click here
I always answer....even if I don't know
the answer!
| Traded Endowment Directory |
| Beans of Wisdom A society grows great when old men plant trees whose shade they know they shall never sit in |
A. For several very valid reasons:
1. Endowment policies can be used to secure bank
loans…MASSIVE bank loans. Loans that don’t have to be
repaid until the policies mature in, perhaps, ten years time
and loans the banks are happy to offer, because the policies
offered as security are insured and guaranteed.
2. Using the Internet to broker thousands of policies,
shortcuts the process otherwise required to sell them. The
figure that is being offered to you is only a percentage of the
face value of the policy, your part is to take out the policy in
your name and immediately assign the policy back to the
company. By reassigning you are NOT beholden to the
company and are in no way responsible for any repayments!
3. I understand that there also tax advantages of raising
capital in this manner, but I don’t pretend to understand the
why’s and how’s.
1. Endowment policies can be used to secure bank
loans…MASSIVE bank loans. Loans that don’t have to be
repaid until the policies mature in, perhaps, ten years time
and loans the banks are happy to offer, because the policies
offered as security are insured and guaranteed.
2. Using the Internet to broker thousands of policies,
shortcuts the process otherwise required to sell them. The
figure that is being offered to you is only a percentage of the
face value of the policy, your part is to take out the policy in
your name and immediately assign the policy back to the
company. By reassigning you are NOT beholden to the
company and are in no way responsible for any repayments!
3. I understand that there also tax advantages of raising
capital in this manner, but I don’t pretend to understand the
why’s and how’s.
 | |  | |  | |  |
My own guess is ‘Emerging Markets’. This
is the most lucrative area for financial
investment at this time and everyone is
trying to grab a piece of the action whilst it’
s hot. Search the Internet for emerging
markets or BRIC as it is often called and
you will uncover a whole new world!
Why doesn’t the bank or the benefit
provider just take out the policies
themselves? There are strict laws
governing these financial items – if they
could do it themselves and bypass you,
they most certainly would!
is the most lucrative area for financial
investment at this time and everyone is
trying to grab a piece of the action whilst it’
s hot. Search the Internet for emerging
markets or BRIC as it is often called and
you will uncover a whole new world!
Why doesn’t the bank or the benefit
provider just take out the policies
themselves? There are strict laws
governing these financial items – if they
could do it themselves and bypass you,
they most certainly would!
Another reason for the proliferation of TEP’s at this time is the number people
retiring. The baby boomers are reaching retirement age and the number of
people over the age of 65 is greater than the under 39’s. Endowments are a form
of currency. If you took out a plan in the 1970’s or 80’s and it has matured you
might have received the equivalent of $50,000 by now. That $50,000 will buy you
a policy that has been running for 13 years and will mature in twelve years time
yielding perhaps $150,000. Careful planning can earn you a great deal in this
market, but more policies are required to fill the void for the aging population.
This has been a really crude look at the reason for traded endowments, but one
that clearly shows there are valid reasons for the apparently ‘too good to be true’
money giveaway schemes that are so quickly labeled scams on the Internet.
Of course, I have to close this page with the usual disclaimer – joining any one of
these programmes doesn’t guarantee that YOU will receive your share of the
money. Ignoring the slight risk that the programme is a scam, there is a long chain
of contracts between the benefit provider, the funds provider, the insurance
company and you, each of which must be satisfied before the programme can
complete and pay the money to you. Failure can occur at any level, although most
of programmes promise to return your membership fee if they fail to complete their
contract with you.
One of the biggest problems encountered so far is people joining a programme
and then getting cold feet when the time comes to send in the required
documents. Identity theft is prevalent these days, but the risk of your identity
being stolen is far greater if you have a house, purse, wallet, car, office etc. Step
into the street carrying a wallet containing a credit card and drivers license and
you instantly a target for ID theft. There is far less chance of your ID being used if
it is the form of a scanned image.
retiring. The baby boomers are reaching retirement age and the number of
people over the age of 65 is greater than the under 39’s. Endowments are a form
of currency. If you took out a plan in the 1970’s or 80’s and it has matured you
might have received the equivalent of $50,000 by now. That $50,000 will buy you
a policy that has been running for 13 years and will mature in twelve years time
yielding perhaps $150,000. Careful planning can earn you a great deal in this
market, but more policies are required to fill the void for the aging population.
This has been a really crude look at the reason for traded endowments, but one
that clearly shows there are valid reasons for the apparently ‘too good to be true’
money giveaway schemes that are so quickly labeled scams on the Internet.
Of course, I have to close this page with the usual disclaimer – joining any one of
these programmes doesn’t guarantee that YOU will receive your share of the
money. Ignoring the slight risk that the programme is a scam, there is a long chain
of contracts between the benefit provider, the funds provider, the insurance
company and you, each of which must be satisfied before the programme can
complete and pay the money to you. Failure can occur at any level, although most
of programmes promise to return your membership fee if they fail to complete their
contract with you.
One of the biggest problems encountered so far is people joining a programme
and then getting cold feet when the time comes to send in the required
documents. Identity theft is prevalent these days, but the risk of your identity
being stolen is far greater if you have a house, purse, wallet, car, office etc. Step
into the street carrying a wallet containing a credit card and drivers license and
you instantly a target for ID theft. There is far less chance of your ID being used if
it is the form of a scanned image.
Remember The Benefit Provider is NOT creating thousands of Defined Benefit Plans just to be nice to you. He's using you to help him make more money! |
|
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Top Traded Endowment Policies
1. **ImperiaInvest** -
Closed
2. WorldPensionPlus -
Fastest selling Benefit plan
Receive $80,000 for a $55 fee
(Credit cards accepted via Alertpay)
Excellent website plus excellent
management and support.
3. GlobalPensionPlan -
largest and longest running
plan
Closed
4. HCI25 (ref=Organicman) -
Close to completion
Receive GBP42,500 for a one time
$45 fee
This is the only company with a
provable history of paying out on
large investments. This Benefit plan
is just one of their current investment
opportunities and is very close to
reaching the 27,000 members
required. DON'T DELAY.
5. Excelprestige - Excellent
management & support
Paying out $70,000 to members for a
single fee of $40
This is one of the best benefit plans
available. Buy 2 get 2 policies free!
6. UPI - Large payout
Vanished
7. Pensions Worldwide -
One of the original plans
Receive $75,000 - one time $50 fee
One of the first plans on the Internet,
but had to close for a while due to a
contractual matter. Back with a newly
approved contract and a lower target.
Why would someone pay you
$75,000 or more for a tiny admin fee?
Find out more here
1. **ImperiaInvest** -
Closed
2. WorldPensionPlus -
Fastest selling Benefit plan
Receive $80,000 for a $55 fee
(Credit cards accepted via Alertpay)
Excellent website plus excellent
management and support.
3. GlobalPensionPlan -
largest and longest running
plan
Closed
4. HCI25 (ref=Organicman) -
Close to completion
Receive GBP42,500 for a one time
$45 fee
This is the only company with a
provable history of paying out on
large investments. This Benefit plan
is just one of their current investment
opportunities and is very close to
reaching the 27,000 members
required. DON'T DELAY.
5. Excelprestige - Excellent
management & support
Paying out $70,000 to members for a
single fee of $40
This is one of the best benefit plans
available. Buy 2 get 2 policies free!
6. UPI - Large payout
Vanished
7. Pensions Worldwide -
One of the original plans
Receive $75,000 - one time $50 fee
One of the first plans on the Internet,
but had to close for a while due to a
contractual matter. Back with a newly
approved contract and a lower target.
Why would someone pay you
$75,000 or more for a tiny admin fee?
Find out more here