Topic 21 - Using endowment policies for mortgage repayment

Question 1

GSA

Answer 1

Guaranteed sum assured , paid on maturity

Question 2

Smoothing

Answer 2

creating a reserve in years of good fund growth rather than paying all growth out in bonuses, so that in poorer years it may still be possible to pay a bonus

Question 3

Paid up policies

Answer 3

Endowment policies cancelled premiums
reduced benefits
Paid at end date