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Suitable for long term investment (with an element of
guarantee) |
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Single parent age 30-1 child (possibly investing all or some of the child benefit
payment) |
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Married couple both 32 no children |
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Married couple in their 30's with 2 children aged 5
& 8 |
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Married couple in their 40's with 2 children in
school/university |
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This contract has a fixed term of years decided upon at
the outset. The benefit under the policy is payable either on death during
the chosen term or at the end of the term if the life assured survives
until then. The policy therefore fulfils two needs-that of cover against
early death during the term and saving towards a lump sum at the end of
the term should the life assured survive. Because of this dual benefit and
because all policies will end in claims, this type of contract is the most
expensive of all. |
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Endowment assurances are used mainly to provide a lump
sum at some date in the future, usually between 10 and 30 years ahead.
However, it can be used to repay a house purchase mortgage where the
policyholder pays only interest on his mortgage where policyholder pays
only interest on his mortgage and no capital is repaid. The endowment
assurance benefit will be equal to the amount of mortgage and will be
available to repay the loan in the event of a death of the life assured or
at the end of the chosen term if death has not occurred. |