By Drum Digital
30 March 2014

An endowment is a flexible option as it allows you to put money away either on a monthly or annual basis.

Depending on the institution that you invest through, an endowment is an inexpensive way to invest your first pay check.

It is a long-term insurance savings product that only matures after five years and you have restricted access to your investment, which is a great option, especially if you are not a disciplined investor.

After the five year period, this investment allows you to draw on your investment amount without paying income tax, because the tax is already paid by the insurer within the endowment. Endowments are a great option should you have a financial goal in mind and have a set amount of money to invest each month. This is a great tool to use if you are saving for an overseas trip or a deposit on a new car or home.

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