According to figures released in November 2008, these policies delivered an average return of 8.3% over 25 years, outperforming the market, says APMM.
Brian Goldstein, Chairman of the APMM, said: “For savers looking for a mid to long-term investment, TEPs are at the lower end of the risk spectrum and have the potential for capital growth. When you buy a TEP it is transparent at the time of purchase, with a minimum guarantee made up of the sum assured and bonuses accrued on the policy to date. Many of the policies available today have a minimum guarantee of at least 90 per cent, an appealing characteristic in the current climate.
“Add to this, the fact that recent figures show endowments have outperformed the average of the balanced managed, UK All Companies, UK Equity Tracker and both instant access and 90-day notice accounts over 15, 20 and 25 years, and now could be the time for consumers to consider turning to TEPs.”
