Endowments explained

Endowments are investment policies designed to run for a set period of time, with money paid into the endowment invested with the aim of meeting a target amount.

Money paid in also pays for life cover that pays out the target amount if one of the people covered dies during the policy term. Some endowments also provide the option for other insurance benefits, such as critical illness or disability cover.

Types of endowments

Providers offer a number of different types of endowment policies:

Money paid into the endowment buys units in one or more investment funds. The value of these units can go up or down in line with the investments that make up the fund, affecting the final value when money is taken.

Money paid into the endowment is invested in a with-profits fund, together with the savings of other policyholders. Bonuses are then added to the policy, depending on how the investments in the with-profits fund perform. There is no guarantee that a bonus will be applied each year, but once a bonus has been given, it is guaranteed. These endowments normally have a minimum final value (known as the sum assured) which is added to any bonuses due when money is taken.

These pay out a guaranteed amount either at the maturity date, or if one of the people covered dies during the policy term.

ReAssure offers the Investment and Protection Plan to existing customers who need to increase the premiums on an existing policy, or require extra cover.

Allows you to build up a cash lump sum at the end of the plan’s term.

Investment and Protection Plan explained

The Investment and Protection Plan is an endowment assurance policy, which provides a cash lump sum. It’s often used by customers to pay off part, or all, of their mortgage.

Why you might have this policy

If you have an investment policy, it’s regularly reviewed to see if the premiums you pay are enough to maintain your level of cover. If they’re not, we’ll offer you the choice to increase your premiums.

Depending on the type of existing policy you have, we may have to start a new policy so you can increase your premiums. This policy is then administered alongside your existing policy. We’ll offer you the Investment and Protection Plan if it’s similar to your existing policy.

You may also have bought the Investment and Protection Plan because you needed some extra cover.

Important documents

The Key Features Document explains how the Investment and Protection Plan works.

The Key Information Document tells you what you might get back from the Investment and Protection Plan. It uses figures which are based on an example customer, and were calculated using past performance figures.

If you apply for an Investment and Protection Plan we’ll send you an illustration, which will also show what you might get back from this product. It will use figures which take into account your circumstances and choices, and will be calculated using estimated future growth rates.

Making an endowment claim

As your endowment runs for a set term, you’ll receive a letter from us shortly before its maturity date which will tell you what you need to do to claim your money.

If you’d like to cancel your endowment before its maturity date and receive its current value, please call us and we’ll let you know what you need to do next.

If you’re looking to make a claim on an endowment as the person covered has died, or you want to make a claim on another benefit such as critical illness, you should go to our Making a claim section.

Here you can find out how to get in touch with one of our dedicated claims handlers, learn what information you’ll need before you call, and understand the steps in the claims process.

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Fund prices

You can find out more about funds here