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Traded Endowment Policies
or TEPs are old, second hand with-profits endowment
policies legally assigned to new
owners who pay the purchase price and take over the
payment of future premiums. The life assurance cover
remains on the original life/lives assured, but all
policy benefits on maturity or, an earlier life assurance
payout, are the property of the new owner.
As TEPs are purchased
mid-term the policy already has a guaranteed value made
up of the 'Basic Sum Assured' and 'Bonuses Attaching' and
the initial charges have all been paid by the original
policyholder.
The Basic Sum Assured
remains constant throughout the term of the policy and is
paid on maturity or earlier if the original life assured
dies. In addition bonuses are added to the policy every
year and once added they cannot be reduced or taken away.
The existing annual (or reversionary) bonuses together
with the basic sum assured when the policy is purchased
constitute the guaranteed value which is often higher
than the purchase price of the TEP, meaning that,
provided the policy is kept through to maturity, the new
purchaser cannot suffer a financial loss.
Traded Endowments and TEPs
explained
A with profit endowment
policy run and managed by a life assurance company
pays a guaranteed sum at the end of a fixed term
called the amount assured. This is determined by
contract providing that the premiums have been
paid.
The final amount
will include any profits accumulated during
investment. These profits are declared annually and
are paid to the assured person when the contract is
finished.
In the event of
death by the policy holder, the money will be paid
directly to the policy holders estate. (Next of
kin).
The policy premiums
are normally paid for monthly. The life assurance
companies use most of this money to invest and then
share the profits with their policy holders each
year. In effect, the policy holder is taking a
share of the life assurance companies profits from
wise investments. Annual bonuses and terminal bonuses are therefore added to the basic sum assured.
Survey reports falling endowments nationwide (The Brown Daily Herald)
By: Heeyoung Min University endowments nationwide saw an average endowment loss of 18.7 percent for the last fiscal year, according to a report with data from 842 institutions compiled by the National Association of College and University Business Officers and Commonfund.... 06:35 AM 02/09/2010
Rutgers U. endowment, $509M, fares well despite economy, report says (The Star-Ledger)
Mike Nixon/The Times of TrentonRutgers Old Queens building on the New Brunswick campus of Rutgers University.NEW BRUNSWICK -- A study reported by the Daily Targum said Rutgers University's endowment is doing well compared with the endowments of colleges and universities... 01:57 PM 02/09/2010
Ex-Financial Adviser Is Sued by Wesleyan (New York Times)
As the economy eroded college endowments around the country, money managers in academia worked tirelessly to contain the damage. Everywhere, that is, but at Wesleyan University , at least according to a lawsuit that the university has brought against its former chief investment officer. 11:11 AM 02/08/2010
University endowment declines (The Daily Orange)
Syracuse University experienced a 33.2 percent decline in endowment funds from July 1, 2008 to June 30, 2009, the highest percentage drop for a top 100-endowment university in the United States, according to the NACUBO-Commonfund Study of Endowments. Institutions saw an average decrease of 18. 07:56 AM 02/09/2010
U. endowment climbs despite economic woes (The Daily Targum)
By: Greg Flynn A new study reports the University’s endowment is doing well in comparison to the endowments of other colleges and universities. Clocking in at $508.8 million, the University’s endowment and other similar funds shot up 13 spots in the National... 04:33 AM 02/09/2010
University endowments down (The Florence Times-Daily)
By Michelle Rupe Eubanks Staff Writer FLORENCE - College and university endowments took a beating in the last two years thanks to the economic meltdown, but there are indications a turnaround is under way. Alan Medders, vice president for advancement for the University of North Alabama, said the endowment at the four-year school took a hit, too. 05:08 PM 02/05/2010
Endowment collections decrease (The Florence Times-Daily)
By Michelle Rupe Eubanks, Staff Writer College and university endowments took a beating during the past two years thanks to the economic meltdown, but there are indications a turnaround is under way. Alan Medders, vice president for advancement for the University of North Alabama, said the endowment at the four-year school took a hit, too. 09:39 AM 02/08/2010
Endowments at UNC, Aims taking a hit (Greeley Tribune)
Despite encouraging signs to end 2009, the recession has nevertheless battered endowments at colleges and universities across the nation. Aims Community College has continued to halt distribution of its endowment scholarships while UNC has also suffered substantial losses in its endowment portfolio - a microcosm of the poor financial landscape that has seen the value of college and university ... 08:05 AM 02/05/2010
University endowments across Texas fell in 2009 (The Battalion)
A trend among U.S. universities reveals trouble, according to a study released by the Commonfund Institute, a nonprofit group that polled 629 educational endowments on results. Endowments at several schools lost nearly one fourth of the value. 04:48 AM 02/05/2010
Ziegler Announces Fourth Quarter Financial Results (Marketwire)
CHICAGO, IL--(Marketwire - February 9, 2010) - The Ziegler Companies, Inc. ( PINKSHEETS : ZGCO ), a diversified financial services holding company, today released its financial results for the year ending December 31, 2009. 02:30 PM 02/09/2010
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