Endowments

[GTI07]

Been thinking about getting 1 of these, either a 5 year or 10 year. Anyone you can reccomend i speak to regarding this? What are your thoughts on it. Remember some time back i was offered 1 that covers you for death, disability and dread disease and when you reach a certain age and you haven't had a pay out against the policy you get a lump sum of money back, anyone got any further details on soemthing like this? Would love to hear your thoughts on this.

 

[Waaib]

My understanding is that products that combine risk cover (death disability etc) with savings are old fashioned and not regarded as good financial practice anymore. It's more cost effective to buy that kind of cover separately from your savings/investment. The payout you eventually get is much lower because part of your premium is always funding the risk cover.

For long term investments you should also consider companies like Allan Gray, Coronation, Voort etc. Their equity (high risk) funds are best for long term type investments.