Tax on endowment policy

[Majick]

A year ago I wanted to open up an investment account to save recurrently (5-10 years horizon). My marginal tax rate is over 30% so opted for an endowment policy. I did not take into account the annual interest exemption (R23800 in 2017). The account does not generate nowhere near R23800 interest annually but am I correct in my understanding that I will get taxed at 30% because of the endowment policy? Am I losing money and should just move it all to a basic unit trust?

I don't think I completely understand the taxation on an endowment policy. Can anyone assist?

I already have a TFSA (I don't plan to withdraw from until absolutely necessary) and a RA.

 

[Hendrix]

Endowments get taxed at a flat rate of 30% within, you will be paid a lump sum at maturity.
what is the endowment invested in? Company? How old is it?

You cannot just move, you have signed a contract, you will most likely be penalized. Contact the company concerned to find out.