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Endowment insurance |
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Endowment insuranceA cash value life insurance policy with a fixed term. Premiums are applied to give life insurance cover for the face amount and at the end of the term the cash value will equate to the face amount and be payable.Similar MatchesEndowment mortgageEndowment mortgageAn interest-only mortgage ultimately repaid by the proceeds of an endowment assurance policy which is assigned to the lender providing the mortgage. The policyholder pays the lender's interest only, for the term of the mortgage. The sum assured, which is payable on maturity or prior death of the policyholder, is used to repay the mortgage. Policies are usually with profits (or low cost endowment), unit linked or unitised with profits and sometimes this provides some additional capital for the policyholder after the lender has been repaid. Low start endowmentLow start endowmentThis is essentially the same as a low-cost endowment, but premiums begin at a lower level and gradually increase over a number of years - usually between five and ten. The initial premium can be significantly lower than the full premium, but never lower than half (which is a common starting point). Premiums may, for example, increase from 50% to 100% of the final value by 20% per year for 5 years or by 10% per year for ten years. This is another product designed to make it easier to budget over the first few years of home owning, when money is likely to be tighter for many people. As with most products that work this way, you generally have to pay for it in the long run. Full endowmentFull endowmentAn endowment policy in which the savings element is significantly increased. Unit linked endowmentUnit linked endowmentYour monthly premiums are used to buy units in a fund or funds run by professional managers. Like unit trusts, the price of these units can go up and down, so the value of the endowment can constantly change. Child deferred endowmentChild deferred endowmentAn endowment assurance, on the life of a child, which can be taken as cash at maturity or converted to a full endowment or whole life assurance. Further SuggestionsFactor endowmentTraded endowment policy (Tep) endowment assurance Non profit endowment Unitised with profit endowment pure endowment Endowment income endowment Endowment income pure endowment second hand endowment endowment Full with profit endowment unit linked endowment assurance Low cost endowment |
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