Best Price Endowment > Endowment Life Insurance Policy

Life Insurance

Provides payment in the event of death only. Usually for a specific term
- known as Term Insurance although can be for the whole of your life
- known as Whole of Life Insurance. No investment element. Good for your surviving dependants, but does not provide for investment or savings.

Endowment Life Insurance Policy offers life insurance (Term) but also has the incentive that if you survive the policy you still collect a maturity value at the end of your agreed term.

The Endowment Life Insurance Policy therefore is not just a source of protection but it has also become a recognised source of savings and investment. These policies have two main investment options.

Here is a summary of their main points:

With Profits

Share in profits made by insurance company's investments. Amount of profits & bonuses are not guaranteed, although once declared can not be taken away from the policy. A means of long-term saving with a low to medium risk. Potential for a good return. Sum assured payable on death. Matures on a specified date.

Unit Linked

Your premiums are invested & managed by the insurance company. Investment performance is linked to equities (the stock market). Amount payable under the policy is linked to the value of the investments. Although the policy matures on a specified date, the policy can remain invested and will continue to rise and fall in line with the fund's performance. The risk vs. return ratio is medium to high.