COVID-19: We ask for your understanding as you may experience delivery delays. Learn More
Fiji Island Financial Monetary Authority
entrance Apply for License

These policies are sometimes referred to as ‘death bonds’ because investors try to buy rights to life insurance policies after the ‘death’ of the holder. After investigating the Traded Life Policy Investment Market, we have found many brokers giving unsound advice, thus leading investors to heavy losses. We have decided that brokers may no longer sell TLPIs on the retail market.

FFMA concerns regarding TLPIs

The FFMA has found that often TLPIs are appealing to the public because they are not bound to the performance of the stock market and may look strong, while other investments lag. The truth is that TLPIs are very high risk and we warn the public to be aware of the following facts.

TLPIs calculations are based on how long the life insurance holder might live. With medical advances jumping by leaps and bounds, it has become impossible to predict how long anyone will live. As a result returns will be lower than originally calculated and the investor will lose money.
A TLPI must maintain a certain capital in cash in order keep the investment alive; at times the account manager will sell some of the life insurance before the ‘death’ of the holder in order to raise money. This will lower the value of the life insurance and will prevent withdrawals in the future.
Managing the TLPI will often face difficulties because various companies from different companies will be involved with different aspects of the insurance. This creates an even greater risk as it becomes harder to create consistent policy.

Discuss your investment with a broker

Make sure that your broker can give a clear explanation of why you should invest in a TLPI, get a clear understanding of when you are expected to profit and how calculations are being made. In the event you feel that you made a mistake by investing in a TLPI speak with your broker and find a resolution. If you feel you have been misled and your broker will not resolve the issue, please contact the broker complaints department at the FFMA.

Are TLPIs protected?

  • Most TLPIs are offshore and thus fall outside of MLF jurisdiction; this means for offshore products the FFMA is unable to offer any protection. It is important before investing in a TLPI to make sure that it falls under FFMA jurisdiction.
Contact information:
Copyright © 2020 Financial monetary authority
Fiji Island Financial Monetary Authority

Login account

Forgot password

Remember your password? Log in
Contact us