A variation of the with profit endowment, but is combined with a decreasing term assurance so that the investment build up need not be quite so steep, thus reducing the cost.
This is the most usual form of endowment used to repay a mortgage. It provides life cover which would pay off the mortgage if the policy holder dies. As long as investment assumptions are met the endowment should provide a lump sum sufficient to repay the mortgage at the end of the term. If the assumptions are exceeded then there would be a lump sum over and above the mortgage amount for the borrower to enjoy.
A way of saving, which includes life assurance. It pays out at the end of a fixed term, and also if you die during the term. It is usually used to pay off an interest only mortgage but doesn't guarantee to pay it off.
a combination of an Endowment Assurance Policy and a decreasing Term Assurance
an with-profits endowment
A type of repayment vehicle taken out in conjunction with an interest only mortgage. Payments are made into a fund which is then invested in stocks and shares with the intention that at the end of the loan term the investments will have generated enough of a return to pay off the balance of the mortgage. There are however, no guarantees that this will be the case.
A savings plan that includes decreasing term insurance, a type of insurance policy where the amount that the policy pays out reduces over time
Is the most common form of endowment policy used to repay a home loan. It is a mix of full endowment and term assurance designed to provide full life cover in the event of death during the loan period. If investment returns are high enough it should also provide sufficient funds to repay the loan at the end of the term and ideally provide the borrower with a tax free cash surplus. It is not guaranteed to pay off the loan and that any shortfall will have to be made up by the borrower.