With parents expecting to give their children almost £24,000 to help them get a foothold on the property ladder, traded endowment policy specialist Policy Portfolio is suggesting that parents consider investing in TEPs to be assured of a guaranteed minimum sum to assist their offspring.
Brian Goldstein, managing director of Policy Portfolio, says: “With the average mortgage repayments predicted to rise this year to 20.8% of the average income in London and the South-East, many parents will want to plan ahead to help their children meet some of the cost of joining the property ladder. One solution may be to invest in TEPs.
“The advantage of TEPs lies in their built in security: once given, bonuses allocated throughout the investment term cannot be taken away. They are guaranteed and in many cases these bonuses are greater than the amount paid for a TEP so the initial investment cannot be lost.”