A unit-linked endowment policy marketed by a life-assurance company that is designed to produce maximum profit rather than life-assurance protection. It calls for regular premiums, usually over ten years, with options to continue. These policies normally enable a tax-free fund to be built up over ten years and, because of the regular premiums, pound cost averaging can be used, linked to a number of markets. Such investment products are now largely obsolete, since there is now a general preference for separating the life assurance and investment elements of products.
Subjects: Financial Institutions and Services.