Endowment insurance policy


Several years ago John McGregor bought an endowment insurance policy that is about to mature. He has the option of receiving £20,000 now or £40,000 in 10 years' time. Because he has retired and pays no income tax, he could invest the money with a real interest rate expected to remain at 10% a year for the foreseeable future. Which option should he take?

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Finance Basics: Endowment insurance policy
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