Section 1 of the Long-term Insurance Act defines a 'sinking fund policy' as a policy, excluding a life policy, which provides one or more sums of money at a fixed or determinable future date. A sinking fund was introduced to allow business entities to invest via a long term insurance policy.
What is it?
Contributions to the endowment are made in cash as a lump sum at the start of the investment period.
How do I contribute?