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Full with profit endowment |
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Full with profit endowmentThe most expensive endowment plan with the highest guaranteed returns. This type of endowment guarantees an annual growth and also to pay off the full loan at maturity which is the cause of the added expense. It also has built in life cover. The future growth of your investment is assumed to be at a certain rate, which determines the level of your premiums. The portion of your premium that is being invested is pooled with the premiums of other investors. Annual bonuses are added to the maturity value each year and are dependent on the performance of the investment fund. There is a possibility that the bonuses will take the maturity value above the level required to pay back the loan. This would result in a tax-free cash surplus, which you can spend on whatever tickles your fancy.Full with profit endowment 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. Second hand endowmentSecond hand endowmentSee: 'traded endowment policy'. 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. Income pure endowmentIncome pure endowmentAn endowment plan which carries an option at maturity for the proceeds to be paid in the form of a regular income. In the event of the policyholder's death before maturity no benefit is payable. Unit linked endowment assuranceUnit linked endowment assuranceSee: 'endowment assurance'. Further SuggestionsEndowmentLow start endowment full endowment endowment insurance Factor endowment Unit linked endowment Low cost endowment Endowment endowment assurance pure endowment Unitised with profit endowment endowment income endowment Traded endowment policy (Tep) Non profit endowment |
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