Endowments are long term regular savings plans used to build up a cash sum. At the end of the fixed term, the cash sum is usually used to repay a mortgage, or another savings need.
They also provide life assurance which is attached to the policy. The amount of life assurance cover selected was usually aligned to the mortgage amount that would need to be repaid in the event of the life assured’s death.
Policies may be held on a single life or joint life basis and can also be assigned to a mortgage lender or placed in trust.