What is endowment?
"> What is endowment?
An endowment is an investment product, which will pay out a cash lump sum on a fixed date in the future. The product also provides life cover and will pay out a guaranteed amount if you die before your plan matures. Some plans will pay out a guaranteed amount in the event of sickness or disability, as specified in your plan provisions. You make monthly or annual payments into your endowment until a specified date. An endowment may run alongside your mortgage with the aim of paying off a lump sum at the end of your mortgage term. However, as investments can vary in value, the policy may not pay out enough to repay the mortgage at the end of the term.