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.

Requestcall back

Request call back.

or call us
01246 224 030
 

Trust my hard earned savings to a banker to invest? Not me! I use Harmony Wealth Management. Harmony for friendly, simply explained, trustworthy and truly independent financial advice.

Trevor Mee, S. Lanarkshire, Scotland

Mr Neil Smith has been looking after my mother's financial affairs for a number of years. He has always dealt with our queries promptly and he is always very professional and friendly, nothing is too much trouble. A great guy and we hope he will be acting on our behalf for many years to come.

Ann Selby (Mrs) for: Mrs. E. Cunningham (December 2009)

Harmony Wealth have overseen our entire financial affairs from their inception and for many years previously by Neil.

We have found their impartial and independent advice invaluable, covering a wide area of our requirements, all of which has been handled with extreme confidentiality, punctuality, reliability and friendly professional service.

Nothing has been too much trouble and we have had no hesitation in recommending them to a number of friends and colleagues, all of whom have expressed their thanks for doing so.

The addition of a Will writing service and being able to arrange Lasting Powers of Attorney has been a much welcome benefit, thereby alleviating the need to engage other professionals in what is a private and delicate subject.

T J & K Winter Norwich

01246 224 030
Penmore House,
Hasland Road,
Chesterfield,
S41 0SJ.

enquiries@harmonywm.co.uk