Endowment Plans
Posted on January 26, 2008 - Filed Under Business | Leave a Comment
An endowment policy is a life assurance agreement proposed to pay a lump sum after a particular term or on earlier death. Endowments can be cashed in early - known as surrendered - and will then be paid the surrender value which is decided by the insurance company depending on how long the policy has been running and how much has been paid in to it.
For the duration of unfavorable investment circumstances, the encashment worth or surrender worth may be trim down by a ‘Market Value Adjuster’ to allow for the require to cash in units at a time when investment circumstances are not perfect. This means that the investor would take delivery of the surrender value less the market worth adjuster.
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