Thread: Hci 25 - www.hci25.com

Since chicosan wanted to discuss TEP's, thought this information would be of help to all of you. Pay attention to the parts bolded and underlined, as they are important in this discussion:

Traded endowment policies (TEPs) or second hand endowment policies (SHEPs)are traditional with-profits endowments that have been sold to a new owner part way through their term. The TEP market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company. Investors will pay more than the surrender value because the policy has greater value if it is kept in force than if it is terminated early.

When a policy is sold, all beneficial rights on the policy are transferred to the new owner. The new owner takes on responsibility for future premium payments and collects the maturity value when the policy matures or the death benefit when the original life assured dies. Policyholders who sell their policies, no longer benefit from the life cover and should consider whether to take out alternative cover.

The TEP market deals exclusively with Traditional With Profits policies. The easiest way of determining whether an endowment policy is in this category is to check to see whether an it mentions units, indicating it is a Unitised With Profits or Unit Linked policy, if bonuses are in sterling and there is no mention of units then it is probably a traditional With Profits. The other types of policies - “Unit Linked” and “Unitised With Profits” have a performance factor which is dependent directly on current investment market conditions. These are not tradable as the guarantees on the policy are much lower and there is no gap between the surrender value and the market value.

Notice these are "Unwanted" policies, and the "new owner takes on responsibility for future premium payments" otherwise the policy would lapse. So these policies must be kept in force, premium payments must continue to be made, or there is no payout when the person on whose life this was issued dies or the policy matures.

Now the mantra has been that only the super rich have access to these "special private placement policies," and they are not available to the "common man." Thus the conspiracy theory goes this is the way the rich keep the little guy down.

Now all of a sudden, the "super rich," out of the goodness of their hearts, are allowing a "select few" of you "little guys" the opportunity to make a lot of money by participating in these "special policies" through a "private placement." But doesn't that contradict the "super rich" wanting to keep the "little guy" down? If this is their true calling, then why would they even consider offering anyone, let alone a "select few" get a piece of this action? But not only are they allowing you to participate, you only have to pay an admin fee. You don't have to pay part of the premiums to keep these policies in force, and for all of this they are going to pay you thousands and thousands of dollars. The "super rich" are taking all the risks, paying out all the premiums, giving you a large % of the policy, and they are getting a smaller return on their investment. Doesn't sound like the "super rich" want to keep the "little guy" down now does it?

Notice that the reason why the person who took out the policy in the first place wants to sell it is because the surrender value is usually on the low side, they need cash now not at the end of the term of the endowment policy. The only way you gain is to keep the policy in force until death or maturity of the policy takes place. Even then your return is far less than other types of investment products.

This leads us to the size of this market. By size I mean how many of these policies are available to be sold. Well, this market is very small, and thus why the returns are small to the investor. They really aren't attractive investments to the "super rich" because most investors are not willing to hold these policies until the maturity or the death of the insured because: they have to continue to pay the premiums or the policy will lapse, only the maturity date of the policy is assured (the person might not die before the maturity date), and their rate of retun on their investment is low.

So let's cut to the chase. What we have here is a program that is being run by supposedly by 2 financial guru's, and I mean supposedly because we really don't know there are 2 of them; they have a Trust partner, who according to them is a "sophisticated" investor (a Venture Capital firm); program is only available in a private placement; and offering a product that has a very limited number of policies in play. Only problems are: The degrees don't exist, a Venture Capital firm does not deal in TEP's (not their function); and a private placement program will not return any more than one offered to the general public in this market.

Now before you respond this is only according to me, chicosan, please provide facts to challenge anything I have said above. In short, prove me wrong. By the way, were you aware that a NDA is not enforceable, or for that matter not needed, if you are not in a program? So a NDA excuse won't cut it, unless of course you really are in this progam, but since you said you weren't now you don't have to worry about being bound by any.

Originally Posted by Owen Platt

Offshore Finance Canada Magazine - Who’s Afraid of Bank Debentures?

Now Owen, don't confuse chicosan with FACTS.

Verry nice contribution Lynre, didn't knew what a TEP was till now.

Originally Posted by derrekmay

Verry nice contribution Lynre, didn't knew what a TEP was till now.

You are most welcome, and glad I could be of help.

Chicosan, PaulM, Pipsreal where did you go? Was it something I said? Nah, couldn't be. Must have been all those "pesky and real FACTS."

As for Gregory and Wolfgang, they don't show up in the New York listing of Financial Advisors, nor are they securities registered (required by the way or acting illegal) either. No degrees, no securities license, and no registration. Must be the invisible financial guru's. Now how in the world can this be?

Originally Posted by LynnRE

Chicosan, PaulM, Pipsreal where did you go? Was it something I said? Nah, couldn't be. Must have been all those "pesky and real FACTS."

Facts are fine, but it would be helpfull IF you would tell ALL of the facts and not just the ones that support your opinions.

As for Gregory and Wolfgang, they don't show up in the New York listing of Financial Advisors, nor are they securities registered (required by the way or acting illegal) either. No degrees, no securities license, and no registration. Must be the invisible financial guru's.

OR something that YOU know nothing about.

YOU have already proven that you aren't the sharpest knife in the drawer.

Now how in the world can this be?

derrekmay ..... You still don't know because he/she has only told you HALF of the facts.

Originally Posted by chicosan

derrekmay ..... You still don't know because he/she has only told you HALF of the facts.

Please enlighten us on how the financial guru's not having graduated from Johnson & Wales, as claimed; their not being licensed as investment advisors; not listed as financial advisors; and not having security licenses are not facts again.

Please post all your "facts" that disprove this. Let's see those BS Degrees posted, let's see their security license numbers posted, let's see where they are registed with the SEC. Oh by the way, it is not going to cause any harm to them to post their security license number. In fact, you are required to show it when requested. So consider this a request.

As to only telling half the story, the half that has been told has shown everything these 2 (are their really 2?) financial guru's have said is a lie. So why would it matter what the other half of what they have to say is of relevance? So please PROVE they are not LIARS.

Obviously you have a hard time telling the difference between FACTS and an OPINION. In case you missed it: Not have the degree they claimed is a FACT. Not being security licensed is a FACT. Not being registered as a Financial Advisor is a FACT. So what FACTS do you not understand?

Originally Posted by LynnRE

Please enlighten us on how the financial guru's not having graduated from Johnson & Wales, as claimed; their not being licensed as investment advisors; not listed as financial advisors; and not having security licenses are not facts again.

To enlighten you is impossible!

Please post all your "facts" that disprove this.

If YOU used what is available to you, YOU would understand how stupid many of your questions are.

Let's see those BS Degrees posted, let's see their security license numbers posted, let's see where they are registed with the SEC. Oh by the way, it is not going to cause any harm to them to post their security license number. In fact, you are required to show it when requested. So consider this a request.

That is only IF!

As to only telling half the story, the half that has been told has shown everything these 2 (are their really 2?) financial guru's have said is a lie.

You're like a broken record! THIS IS ONLY ACCORDING TO YOU!

So why would it matter what the other half of what they have to say is of relevance? So please PROVE they are not LIARS.

I don't have to prove anything and won't have to.

Obviously you have a hard time telling the difference between FACTS and an OPINION.

Actually it's YOU with that problem!!

In case you missed it: Not have the degree they claimed is a FACT. Not being security licensed is a FACT.

Did it ever cross your tiny mind that in the financial arena that they function in, they do not need to register with SEC and do not have to reveal their licensing.

Not being registered as a Financial Advisor is a FACT. So what FACTS do you not understand?

You're a fine one to ask a question like that.

*****************

Please tell me you really aren't this ignorant. I wasn't the one who said they were not graudates of Johnson & Wales, the school did. I was merely the messenger that said it. I even posted their response to me totally unedited.

This notion that in the circles they do financial dealings doesn't require them to show their license, or be licensed is nothing more than smoke and mirrors. If you are acting as a financial advisor, you have to be licensed especially in New York. They do live in New York dont' they? At least they claimed they do. They also have to be licensed with the SEC. It makes no difference what markets they deal in or trade in or advise in, no exceptions. I didn't make these rules, the SEC did. You have a problem with this fact, take it up with them. I merely stated what they so state on their website. This is not my opinion, it is FACT. It is my opinion this program is a scam. I have proven they are liars with FACTS, not opinion. I wasn't the one claiming they graudated with honors from Johnson & Wales, but I was the one who received confirmation they didn't not only not graduate with honors, but didn't even attend. So, if they did, please prove it because the school says they didn't. Not me. I am not the one who says they have to be licensed, the SEC did. They are not registered nor licensed by the SEC. I didn't say it, the SEC did. So if you have a problem with the SEC, take it up with them.

You really can't separate the difference between someone being the messenger and what you consider their opinion. That's not my problem, that is yours. Now I have been totally upfront about none of what they said on their website being the truth. I have proven they lied. So how many lies does it take before you call someone a liar?

The fact you cannot deal that their cover has been blown is not my fault. I guess they never dreamed anyone would actually check them out. Well, someone did and they lied about who they are, what they do, and where they received a degree. Deal with it. They have been exposed, and you know it. I can't believe that you are still trying to claim none of these FACTS are real. You are either totally delusional, or just too stuborn to admit it. I hope it is the latter.

HCI 25 - Human Capital Insurance IS NOW BACK ON LINE.


pinetree