Endowment Policies

Endowment policies can be used to cover a payment due at a later date, such as a home mortgage payment.

An endowment policy is a combined life assurance and investment policy which can be taken out at the beginning of a mortgage and normally covers the entire mortgage term. Monthly endowment policy premiums are paid by the borrower (policyholder) to a life assurance company. The life assurance company invests these payment premiums over the years and will pay out a lump sum payment when the policy matures.

Policies were issued by various life companies with the aim of paying off the policyholder’s mortgage at the maturity date. But, unfortunately, the returns on the endowment policies’ underlying investments have not always lived up to the original projections. In fact, some are falling well short as the policies come up to maturity in 2008 and beyond and will not have sufficient value when they mature to pay off policyholders’ mortgages.

With-profits endowment policies are linked to an underlying investment fund, designed to accumulate value to pay off mortgage loans that become due many years in the future. Endowment Express specialises in the endowment sale market in the UK and can provide a good value and straightforward resource for selling endowments. Endowment policies use an endowment fund designed to pay off the mortgage debt but poor investment returns have taken their toll and endowments do not always prove to be the valuable source of mortgage funding many people thought they would be. If you sell your Endowment now it could help fund your next vacation or pay for your children’s education.

If you have an endowment policy and are unsure where to turn, why not call Endowment Express on 0800 091 1913 for a no-obligation quote or e-mail us