an arrangement whereby a person takes out a mortgage and pays the capital repayment instalments into a life assurance policy and only the interest to the mortgagee during the term of the policy. The loan is repaid by the policy either when it matures or on the prior death of the policyholder
endowment mortgage in Insurance
(ɪndaʊmənt mɔrgɪdz)
Word forms: (regular plural) endowment mortgages
noun
(Insurance: Life insurance)
An endowment mortgage is a mortgage in which repayments are paid into a life insurance policy, and the loan is repaid by the policy either when it matures or when the policyholderdies.
With an endowment mortgage, the insurance company issues the endowment policy, but often it is a bank or buildingsociety which supplies the mortgage.
In the UK, one of the most popular bancassurance products is the endowment mortgage, which is an endowment life insurance policy linked to a traditional mortgage.
An endowment mortgage is a mortgage in which repayments are paid into a life insurance policy, and theloan is repaid by the policy either when it matures or when the policyholder dies.