Endowment assurance

Since benefits are payable only on your death under term and whole-life policies, your widow and other dependants are the only people who benefit directly.

For this reason many policyholders prefer to buy an endowment policy, which provides you, yourself, with a combination of insurance and an investment.

Your family receive a lump sum if you die before the end of a fixed number of years, but should you survive, you can collect this sum yourself. The end of the period is known as the maturity date.

You may choose any term from ten to thirty or forty years, or, if you prefer, you can fix the maturity date to coincide with a particular age (6o or 69 for example). Many people take out endowment policies specially to mature at the time they expect to retire.

Since the chances of your dying before the maturity date are usually small, most of your premium is used to build up the investment part of your policy. Endowment assurances are, therefore, more expensive than either whole-life or term policies, and the actual death cover is smaller for a given premium. As a rough guide, an endowment assurance for £25,000 would cost a man of 30 £500 a year for a ten-year policy, £300 a year for a twenty-year policy, and £150 a year for a policy maturing at age 69.

As you would expect, you can see that the premiums for a ten-year endowment policy are more expensive than for a thirty-year endowment.

This is because you have only one third of the time in which to accumulate your lump sum and you therefore have to pay about three times as much each year in order to build up the z,000 at the maturity date.


Endowment assurance

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

Salon Gold Insurance

Cheaper Insurance for Salons, Freelance Hair and Beauty, and Mobile Businesses - click here

read on: Endowment policies

Since benefits are payable only on your death under term and whole-life policies, your widow and other dependants are the only people who benefit directly.
For this reason many policyholders prefer to buy an endowment policy, which provides you, yourself, with a combination of insurance and an investment.

Your family receive a lump sum if you die before the end of a fixed number of years, but should you survive, you can collect this sum yourself. The end of the period is known as the maturity date.
You may choose any term from ten to thirty or forty years, or, if you prefer, you... see: Endowment policies