Endowment policies can be fantastic ways to save money for the long term under a structured plan, and to give you a strong return in a tax efficient manner. Endowment policies are generally for a term of between 10 and 25 years.

They are paid into by the policy holder over an agreed period in order to build up a lump sum, which can be used for any purpose once the endowment is ‘cased in’.

Endowment policies are typically linked to an interest-only mortgage, with the policy holder paying off the interest owed on the mortgage and the endowment used to pay back the loan itself.