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Low start endowment |
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Low 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.Low start endowment Similar MatchesPure endowmentPure endowmentA life assurance policy where the sum assured is paid if the life assured survives the term but in the event of prior death nothing is payable. 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. 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. Second hand endowmentSecond hand endowmentSee: 'traded endowment policy'. Endowment 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. Further SuggestionsFull with profit endowmentunit linked endowment assurance Endowment Endowment full endowment endowment insurance endowment assurance Traded endowment policy (Tep) income endowment Non profit endowment Unitised with profit endowment income pure endowment Low cost endowment endowment Factor endowment |
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