| a
|
a |
| Commencement
Date |
Start date |
| Maturity
date |
End date |
| With
Profits |
Each
endowment policy
gains from the profits of the Life Office’s ‘with profits’
fund by earning bonuses each year and at maturity. Once added, they
can not be taken away again |
| Basic
Sum Assured |
An amount
guaranteed to be paid out when the endowment policy matures, providing that
premiums have been paid in full. This is the amount to which bonuses
are added each year |
| Guaranteed
Death Benefit |
The amount
that will be paid out on the death of the life/lives assured |
| Reversionary
Bonus |
Annual
bonus allocated to the endowment policy. Once allocated, cannot be taken away |
| Current
Accrued Bonuses |
Total of
reversionary bonuses declared so far. This figure would normally
include any special bonuses declared. Bonus rates are normally set
once a year. |
| Surrender
Value |
The amount
your Life Office would give if the endowment policy were surrendered back to
them |
| Endowment |
A regular
savings plan which is a combination of life cover and investment.
Can either be bought as a "rainy day" savings plan or be
configured to pay off a mortgage |
| Terminal
Bonus |
A sum that
is allocated to the endowment policy when it matures. The amount of terminal
bonus is not guaranteed |
| Paid
up |
The
premiums have been stopped and cannot be restarted. The endowment policy still
‘grows’, but at a slower rate and keeps running until
maturity |
| Traded |
An endowment policy
which has been bought by one person and sold to another |
| Contract
Note |
Document
issued by Market Maker to prospective buyer. Commitment from Market
Maker to sell the endowment policy |
| Deed
of Absolute Assignment |
Legal
document transferring ownership from one person to another |
| Notice
of Absolute Assignment |
Legal
document advising the life company of change of ownership |
| Notice
of No Further Interest |
Legal
document from a third party i.e. a building society, declaring they
no longer have an interest in an endowment policy |
| Notice
of Interest |
Legal
document from a third party i.e. a building society |
Selling endowments for more than the surrender value
Selling endowments the
quick and easy way
Selling endowments for
profit
