Definitions for "Low Cost Endowment"
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.