One of the key goals in our lives is to become a homeowner but most often we face limitations arising out of a lack of capital, among some other common factors.
One of the crucial benefits of life insurance plans is that they allow us the opportunity to budget and save for those important future life events, including purchasing or building our own home.
Such a plan is the Endowment Assurance Plan!
The Endowment Assurance Plan is uniquely designed to allow the policyholder to save over a long period of time and collect a substantial amount at the end of the savings period. The Endowment Assurance Plan pays the full sum assured, with accrued bonuses, upon maturity.
A future homeowner with a goal to build their house within a certain timeframe could consider using the Endowment Assurance Plan as mortgage deposit for a house loan.
As an example, an 18 year old policy holder decide to take a SCR150,000 Endowment policy with a term of 10years, the policy holder’s monthly premium would only be around SCR1,320. When the policy matures in 10 years, the policy holder receives the full SCR150,000, and any accrued bonuses. The SCR150,000 can then be used as the down payment on a SCR900,000 house loan.
The Endowment Assurance Plan is considered to be an effective savings plan as it yields better result if there is a long policy term and if the policyholder waits until the end of the maturity period to collect the full sum assured.
The policy term is usually dependent on the monthly premium the policyholder is willing to pay and the full sum assured. A person who is in search to build or purchase their own home within a certain time frame, may consider a number of options.
These possibilities are best explored between the potential policy holder and a Sacos representative. Contact us for more information on +248 429 5039 or life@sacos.sc.
