A helping hand in seeking for high yield returns

When thinking about investments and savings, the first ones to come to mind are often fixed deposits, stocks, and endowment plans.

Families buy endowment plan from insurance companies for savings and protection. These are safe, good-quality products backed by reputable companies with reasonable returns.

However, during economic slowdowns, an unfortunate trend arises: more families terminate their endowment plans before maturity to free up cash, with retrenchment or other financial difficulties as possible reasons for doing so.

Early termination comes with consequences. When a customer surrenders the policy before maturity, they may lose part of their capital instead of enjoying the interest accrued from their savings over the years.

This is where Conservation Capital provides a solution that helps these distressed sellers: resale endowment plans! Let’s hear from the CEO of Conservation Capital, Mr. Trevor Xie.

What is a resale endowment plan?

Resale endowment plans allow a distressed seller who wants to terminate their endowment plan to do so without suffering a heavy penalty from surrendering the policy. This is done by changing the owner of the existing endowment plan instead of surrendering it.

This enables a seller in distress to get the cash they need, and allows the investor who took over the policy to benefit from the safe and reasonable returns of the endowment plan.

What inspired you to deal in resale endowment plans?

Having been a community worker for 12 years running a charity, I felt an interest to help people get better value out of their existing endowment policies instead of losing money for cashing out. The investor gets a good quality investment when helping a seller get more money for his her savings. Everyone benefits.

How exactly do investors benefit?

Investors stand to gain returns ranging from 4% to 6% per annum, significantly higher than buying a brand-new insurance policy. When the policy matures, it is tax-exempted (all capital gains on insurance is tax-exempt). Conservation Capital will also ask for a revised maturity projection. Because of the shorter time to maturity from the point at which the policy is taken over, the projections are more accurate than those of brand-new policies.

“Having been a community worker for 12 years running a charity, I felt an interest to help people get better value out of their existing endowment policies instead of losing money for cashing out”
It is also possible to buy a policy for less money than the capital invested by the original policy holder. In this scenario, the policy becomes a distressed asset. This means that the cost of investment is lower than the original capital invested. The policy will have accumulated interest over the years as well, so new investors can enjoy significantly higher gains than a brand new investment.

Who are the majority of your clients?

Our clients tend to be middle-aged and senior individuals who are risk-averse and want returns of 3% to 5% with a low level of risk. They are usually strong believers in the track records of insurance companies and have enjoyed maturity benefits from previously purchased policies.

What are your recommendations for investors who are interested in taking on resale endowment plans through your company?

I am an advocate of spreading one’s portfolio of investments over multiple years of returns. For instance, if an investor has $100,000 available for investment, it is recommended to spread it across investments of different years of maturity. For example, an investor could purchase 3 policies maturing in 2020, 2022, and 2024 respectively.

Longer investment terms tend to reap higher returns. While waiting for the first policy to mature, they are accumulating gains on the longer-term policies. Once the first policy matures, the investor will be riding on another policy with higher returns.

How should investors contact you to make an investment?

Our company lists available policies for sale on the 1st of every month on our website. This is a self-help service by which the investor can review the policies themselves online and decide if a listed policy suits their investment needs.

Once a client has confirmed their intention to invest in a policy, we will send the documents them for signing or visit the insurance company to process the policy with the insurance company’s officers as witnesses.

The process only takes 20 minutes, and new investors will receive their notice of ownership from the insurance company within 7 to 10 working days after.

For more information, please visit email to info@conservationcapital.com.sg or call 6222 0338.


Trevor Xie
Conservation Capital's Chairman, Mr Trevor Xie has been actively involved in social enterprises and charity work since 2002. His work has evolved around empowering families, providing micro-financing, financial assistance, free meals and counselling for the needy.

He has decided to take a step further to augment his strong beliefs to help others by actively being involved in this business. He believes that families in financial distress can get a better value from their endowment policies through the secondary market that Conservation Capital offers than if they surrender their policies directly to the insurance companies.

By partnering corporate and individual social investors, he hopes to provide better value to the original policy holders who wish to obtain financial liquidity before the maturity period of their policies.


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