Endowment Savings Plans

If you want to save for the longer-term future, investments that carry a degree of risk can bring the potential of high returns. It can be difficult to gain exposure to a good spread of this type of investment with small monthly savings. A life assurance plan can help.

Life insurance savings plans are usually called endowment policies. They are normally arranged with a fixed level of monthly contribution, over a fixed term. Because of this, there are fairly inflexible.

They always include an element of life assurance

This type of savings plan can be useful in the following circumstances:

For higher rate taxpayers.

For those who have a savings target, but who would want a lump sum to be paid out if they die before the end of the term.

As a disciplined form of savings for those who can afford the regular monthly payments in the long-term but who would not stick with a less structured plan.

Endowment policies are not generally suitable for investors who are not prepared to accept a reasonable degree of investment risk, as the charges would have too great an effect on the returns that can be achieved from secure investment. Additionally, cashing in during the term can often give poor value.

For basic rate taxpayers and non-taxpayers it is possible to find collective savings schemes that take monthly contributions. These are often more tax efficient and are usually much more flexible.

Please contact us for help in achieving your investment targets.