There are in fact two markets that exist with regard to endowment policy trading, the first type is the publicly Traded Endowment Policy (TEP) market which is regulated by securities regulators, which is the only market you will find any information about if you google the phrase “Traded Endowment Policies”.

In this regulated market (the hub of which is in the UK), you must hold a TEP for 7/8 years before the TEP has accrued sufficient value to make it possible for it to be sold into the secondary market, crucially however, as well as this regulated public market in TEPs, there is also a private financial market known as the a “private placement” traded endowment policy market, this market is closed to the general public because it is not regulated by the SEC or equivalent regulators, but it is regulated by the relevant insurance regulators.

Within this private financial market only Sophisticated/Accredited Investors are permitted to invest in the these type of TEPs, and when I say Sophisticated/ Accredited Investors I am referring to the Trust partner or Venture Capital firm, not us the members. Google the term Sophisticated Investor and Accredited Investor and you’ll discover that this is a recognised class of investor; quite separate and distinct from the general public.

So how is it possible that we as members are able to participate in a private placement TEP transaction, even thought they are not open to the general public?, simple, we join a private-members club and pay a membership fee (admin fee), this private-members club structure makes it possible for a “Reverse Pension Plan” to provide it’s members with access to these type of transactions as beneficiaries, not as Investors.

GPP are not selling insurance to members they are instead merely selling memberships to a private club, a private club which offers information in the form of downloadable e-books (which makes it a legally constituted private-members club which no country has outlawed), as well as an opportunity to become beneficiaries of a private placement endowment policy paid for by the Trust partners, not by the members.

Securities regulators exist to protect the general public so when someone who is not financially literate enough to know the difference between a “private placement” (which is not regulated securities regulators) and a “public offering” (which is), makes the elementary mistake of alleging to regulators that GPP or any other RPP is selling insurance then it should come as no surprise to anybody that the securities regulator say that “no” they are not registered with us; and issue a “protective warning” as they are in the business of regulating all “public offerings” of securities and protecting the public by issuing warning about any company alleged to be selling securities who are not licensed by them to do so, but the fact that they have no jurisdiction over private placements since private placements are not regulated by securities regulators, is not mentioned because they were given the wrong information in the first place stating that GPP are selling insurance/securities to the general public, when as we have seen this is not now an never was the case.

I know of at least one RPP who were the subject of such protective warnings by the SEC, but when they (the SEC themselves) investigated the facts of the matter with the full cooperation of the RPP’s operators, they were given a clean bill of health once the full facts of the matter was established.

The biggest difference between publicly offered and regulated TEPs, and private placement TEPs, is that the private placement TEPs, have an immediate value based on its maturity value which is available to the Sophisticate/Accredited Investor as soon as the policy is issued, in other words you don’t have to hold a private placement TEP for 7/8 years before it has accrued sufficient value to make it possible to sell it, this reality is demonstrated by the fact that the Bank will offer a loan of 60% of the endowment policy’s face value (maturity value) to the Sophisticated/Accredited Investor (Trust partner) as soon as it is issued, and since Banks only give loans against good collateral, it should be equally clear that these type of private placement endowment policies constitutes excellent collateral, as otherwise no such loan would be forthcoming.

Remember, these private placement TEPs should not to be confused with publicly offered and regulated TEPs, so knowing your apples from your oranges is key, and is what separates the financially savvy individual, from those less so.

I thought I would add this alternative answer to try to show you how it works.
Reverse pension plans are innovative and highly profitable projects initiated and run by venture capitalists - in pre-arranged cooperation with their insurance company and their mortgage company.

To gather a target number of eligible members, the venture capitalists set up a network-marketing operation (for example, Global Pension Plan or Pension World Wide), offering very generous referral commissions to those who will help get the word out.

When the "Reverse Pension Plan" has reached its' goal number of contracts/members, the venture capitalists will purchase a pension insurance policy on each member which will, of course, mature when the member reaches 67 years of age.

A quick Google search will reveal many entities who are willing to purchase these policies for immediate lump sum payout. This should assure those unfamiliar with endowment policies of their legitimate value. However, Reverse Pension Plan members agree to transfer ownership of their policies to the venture capitalists who purchased them on the members' behalf for a one-time sum.

Then, as each member reaches the age of 67 years, the venture capitalists will collect the full value (about $250,000) of each policy - an assured, substantial, long-term income for them! Also, the cost of the policies, the compensation, and the referral commissions are all tax-deductible business expenses, too.

Additionally, with possession of these policies as collateral, the venture capitalists are eligible for massive loans. This leaves them with plenty to cover cost of the network-marketing operation - referral commissions and administration . By using the loan to finance the program, they now own a pension policy with a significant value upon maturity.

So, now you see that Reverse pension plans benefit everyone involved !