Endowment policies offer a great long-term investment solution for individuals in high marginal tax categories. They can, however, vary greatly in terms and in complexity. LifeSense, however, has the knowledge and expertise required to help you navigate the various pitfalls associated with endowment policies, for maximum return on investment.
What Are Endowment Policies?
An endowment policy is a unique investment vehicle that is essentially a contract between you and a provider. In exchange for a pre-determined capital investment, the insurance company guarantees you a lump sum when the agreement reaches maturity (after an agreed upon period), or in the case of a predetermined event (such as death or disability). The minimum statutory period of investment is five years, although endowment policies are usually only seen as viable for ten year or greater periods.
In the market place, endowments are seen as great instruments for long-term capital growth for individuals with a high marginal tax rate. Let us help you determine your best “fit for purpose” endowment.
The Benefits of Endowment Policies
Tax efficient for those with high marginal rates
Varied products available, allowing for a great deal of tailoring for individual requirements
Show good long-term growth
Generally include added life assurance benefits