Looking to secure a future goal while providing life insurance coverage? Our life insurance advisers at Blueprint Financial Solutions offer advice and guidance on endowment policies. Serving clients in Gloucestershire and across the UK, we help you assess whether an endowment policy aligns with your financial objectives.

Endowment Policies

These are life insurance policies that are designed to pay a lump sum after a specific term and pay out a guaranteed sum if the person insured dies within the term of the plan.

Although it is still possible to buy endowments that guarantee the value of the lump sum at maturity, the majority of policies do not guarantee the maturity value - the money that you get back will depend on the value of the investments within the policy.

By using life insurance policies, the value of the plan at maturity can be paid without paying any further tax if certain ‘qualifying conditions’ are met. Although the policyholder can avoid paying any tax at maturity, the insurance company does pay tax on income and gains within the policy.

These policies can be particularly useful if you have an investment objective you’d like to realise regardless of what happens to you. For example, to repay a mortgage, provide a legacy for your children or provide for university fees etc.

However, the policy charges and the cost of the life insurance mean that it can take several years before the endowment’s value is greater than the contributions paid in. Also, there are other, more tax-efficient and less expensive investment options available, so if you do not have any need to guarantee a sum will be paid if you die, an endowment is unlikely to be the most suitable option for you.
As with most investment the value of an endowment depends on investment performance and is not guaranteed.

 

!

THE VALUE OF INVESTMENTS AND THE INCOME THEY PRODUCE CAN FALL AS WELL AS RISE. YOU MAY GET BACK LESS THAN YOU INVESTED.

TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.

 

Endowment policies can be a beneficial tool for meeting specific financial goals, but it’s important to consider all aspects, including costs and alternatives. Our endowment advisers are here to help make informed decisions about endowments and other investment options, tailoring advice to meet your financial needs.

London Stock Exchange

Value Move %
FTSE 100
8608.48 -26.319 -0.305
FTSE 250
19649.63 58.771 0.3
FTSE 350
4692.25 -11.03 -0.235
FTSE All Shares
4640.5 -10.97 -0.236
Dow Jones
42225.32 235.359 0.561
Nasdaq
17601.047 151.156 0.866

Currencies

Value Move %
0
1.196 -0.004 -0.294
GBP/NOK
13.545 -0.007 -0.049
0
12.847 -0.024 -0.186
GBP/USD
1.306 0.006 0.436

Biggest Movers

Value Move %
SEGRO
795.6 +52.4 +7.05
easyJet
477.8 -18.1 -3.65
!

Market data is subject to a 15-minute delay.

Requestcall back

Tell us where you are in your life so we can help you.

or call us
0800 644 6402