The "Never Ending Pension" is an investment based on Traded Endowment Policies (TEPs) resulting in regular monthly payments starting either 5 (five), 10 (ten) or 15 (fifteen) years after purchase. The "Never Ending Pension" is not dependent on age or health of the Investor, and payments will not stop should the Investor die. Proceeds will simply become part of the estate and TEPs will belong to the inheritors.
It should be noted that the invested capital will not be used up and can be retrieved at any time in later years.
Such an investment is also of interest to younger persons who do not think of a pension. For them we call it a regular "Secondary Income".
A "Never Ending Pension" results when an Investor buys 5 (five) TEPs with similar maturity value but different maturity year - the first policy matures in 5 (five) years, the next in 6 (six), then 7 (seven), 8 (eight) and 9 (nine) years. Normally, five TEPs are been purchased at the same time, but they can also be purchased individually step by step during five years.
In five years, when the first of the five policies matures, a new TEP with similar characteristics to the one just finished is been purchased by using part of the maturity pay out. The same is being done during every following year - one keeps always five valid TEPs with similar maturity value for the next five years.
The difference between the maturity value and the purchase price for the new TEPs provides the "Never Ending Pension". The amount of the Pension is directly related to the bonus rates of the Life Offices - the amount can be slightly higher or lower as predicted. Since most of the accrued bonus values of a policy have already been earned at the time of purchase and are guaranteed, no dramatic changes can be expected until maturity.
The "Never Ending Pension" after 10 or 15 years
If the Investor does not want to start the regular payoff five years from now, then the full maturity value for each year will be used to buy new TEPs. The "Never Ending Pension" will begin after 10 years and is approximatly 50% higher as compared to the 5 - years plan. The invested capital will be increased by the purchase of bigger policies and the capital which can be retrieved after five years from the start of the payout will be much higher as compared to the original sum invested.
The same procedure can be applied to create a "Never Ending Pension" 15 years from now, payoff will be about double compared to a start after 5 years and capital will also increase substantially.