Bluecare Insurance Brokers

Endowments
 
The life assurance industry has led the way in capturing the savings of the nation.

The more traditional vehicle used for investment within a life assurer's product range is the endowment policy. On an endowment you have the following choices.

1.You have a choice of a Endowment with or without Life cover.
2.You have a choice of 5, 10 15 or more year.
3.You can choose what you are going to do with it at maturity time.

Prior to the 1970's the investment from these investments came in the form of a bonus declaration which was made annually or even only every three years. In many cases the bulk of the bonus was only vested at claim stage. That means if you keep your endowment till maturity you have the benefit, like most people to experience excellent returns.
Endowments that have been surrendered early so have some great losses because of early surrender fees and bonusses that did not vest. With new regulations in place a endowment can give you excellent returns. In truth, if correctly structured, an endowment policy can be one of the most efficient and flexible investment vehicles around.
Mistake many people make is to surrender the endowment to early. The costs of the financial advisor and the management fees are deducted up front. That means for the first 3 -5 years you will not notice growth in the endowment. Only after the period will your money start growing. Closer to maturity you can expect you average growth rate of 10% per year. Because your endowment depends on the market it is difficult to predict the outcome. But to make sure you do get the returns you expected, keep a regular eye on your investment. The new generation investments give you the option to change the funds that you use in the endowment.

You financial advisor must be up to date on movements that can create big losses or future movements that can create wealth.