Table 7 Typical annual premium rates per £111,000 sum assured endowment policy over 10, 15 and 20 years.
Age Without profit With-profit
Term (years) Term (years)
10 15 20 10 15 20
£1 £1 £1 £1 £1 £1
30 82 50 33 105 70 54
50 87 55 39 110 75 60
A glance at Table 7 will quickly show that these policies are not protection-oriented. Those in search of life cover for their families will have to be very well off to be able to buy an adequate sum assured through a with-profit endowment and the investment attractions of these policies should never lead you to take out the modest with-profit endowment you can afford rather than the term assurance you may need.
Like whole-life policies, endowment policies also come in two forms, with-profit and non-profit. The distinguishing feature of the endowment is that is has a specified maturity date at which the proceeds of the policy are payable to the policyholder unless thay have been paid at his earlier death. The most common terms for endowments are 10 (the minimum), 15, 20 and 25 years; but policies are also issued with premiums payable to the sixtieth or sixty-fifth birthday of the policyholder, and for any other specific term the policyholder may request. The shorter the term, the higher the annual... see: The Versatile Endowment Policy