|
|
Low cost endowment |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Low cost endowmentDesigned to accumulate the sum needed to pay after a given period, usually for the purpose of paying off a mortgage. However there are no guarantees and investors may have to increase their premiums to build up enough to pay off their mortgage.Low cost endowment Similar MatchesEndowmentEndowmentA gift such as money or property to an institution for a given purpose. Unit linked endowment assuranceUnit linked endowment assuranceSee: 'endowment assurance'. Full with profit endowmentFull 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. Unitised with profit endowmentUnitised with profit endowmentThis is a hybrid unit-linked endowment, designed to smooth out price fluctuations that occur with unit-linked policies. The value of units is declared each year and that value is then guaranteed. The guaranteed value that is declared is at a discount to the actual value of the units. The guaranteed value will not reach the real value until the term of the endowment is up, so the chance of being able to pay of the loan early is minimised. Traded endowment policy (Tep)Traded endowment policy (Tep)Another name for Second-Hand Endowment Policy (Shep). Further Suggestionsendowment mortgagefull endowment Unit linked endowment pure endowment child deferred endowment income pure endowment Factor endowment income endowment Non profit endowment Low start endowment Endowment second hand endowment Endowment endowment assurance endowment insurance |
|
|
|