Endowment

Savings plan that combines Investment and Life Insurance

What is a Endowment ?

An endowment investment is a long-term savings plan that combines investment and life insurance. In South Africa, endowment investments are often used for medium- to long-term savings goals, such as saving for a child's education, a down payment on a home, or retirement.

With an endowment investment, the investor makes regular contributions over a fixed period of 5 years. These contributions are invested in a portfolio of assets, such as stocks, bonds, and cash, selected by a professional fund manager. At the end of the investment term, the investor receives a lump sum payout, which is usually tax-free if the investment has been held for at least 5 years.

How does it work ?

An endowment life insurance policy works by offering the policyholder a payout at the end of a specified contract period, or a death benefit to their beneficiaries if the insured person passes away before the contract period is over. When an individual purchases an endowment life insurance policy, they agree to pay premiums over a set term, which can range from as short as five years to up to 30 years or until a certain age. Part of the premiums go toward funding the policy's death benefit, while the rest is invested. The amount of the premiums typically depends on the policy's benefit amount and contract term, with shorter terms often having higher premiums.

Benefits of an Endowment
Investment in South Africa

Long-term savings

Endowment investments are designed for medium-term savings, typically five to ten years or more. This can provide investors with a disciplined savings plan and help them reach their financial goals.

Tax benefits

Endowment investments offer tax benefits, as the investment returns and lump sum payouts are typically tax-free if the investment has been held for at least 10 years. This can help investors maximise their savings and keep more of their money.

Diversification

Endowment investments offer investors the opportunity to invest in a diversified portfolio of assets, such as stocks, bonds, and cash, selected by professional fund managers. This can help spread risk and potentially increase returns over the long term.

Disciplined savings

Endowment investments require regular contributions over a fixed period of time, which can help investors develop a disciplined savings habit and reach their financial goals.

Benefits of Having an
Mont Blanc Financial Services (MBFS) Financial Advisor:

01

Comprehensive Approach:

MBFS advisors go beyond basic financial products. They take a holistic view of your situation, considering short-term insurance, employee benefits, risk management, and even investment options. This comprehensive approach ensures your financial plan addresses all your needs.

02

Technology & Innovation:

MBFS prides itself on being a "Fresh-Tech" ™ company. Your advisor will leverage modern tools and resources to deliver efficient service and provide you with up-to-date financial information.

03

Client-Centric Focus:

Rooted in their core value "We Care" ™ , MBFS advisors prioritise building strong relationships with our clients. They act as partners, understanding your unique goals and tailoring solutions to achieve them.

04

Peace of Mind & Security:

With MBFS's focus on "Getting You Claims Ready" ™ , our advisors can ensure you have the right insurance coverage in place. This proactive approach can give you peace of mind knowing you're protected financially in case of unforeseen events.