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Endowment policies

What are endowment Policies? Basically they are investment schemes that include life assurance. You pay a monthly premium to an insurer and the policy is intended to grow to a value sufficient to repay, usually, your home loan and, possibly, produce a surplus lump sum as well.

Only a small number of endowments guarantee to repay the mortgage they are linked to. However, many homeowners over the years have been left with the optimistic impression that their policies would produce more money than they needed to repay their loans.

We always suggest that you take a number of policy estimates as well as ensuring the provider is FSA regulated.

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