If you are in search of an endowment life insurance policy to provide your family with the protection they need and if you’ve decided that whole life insurance is not a viable choice, then you may want to look into what is known as endowment life cover.
An endowment life policy is a type of term life insurance and like other varieties of term life policies; they provide insurance for a predetermined time period.
What This Means For Beneficiaries
Your beneficiaries will receive death benefits in the event of your death during this period of coverage, but there are some additional benefits to endowment insurance, namely a payout which may be taken out upon maturity.
Unlike a traditional term life policy, which is a rather no-frills affair, endowment life cover provides a combination of life insurance and a different sort of investment in your family’s financial future.
Many families choose to use these policies to help save for their children’s education, a new home or vehicle or any other major purchase which they may be planning to make later on.
How Much Can An Endowment
Life Insurance Policy Earn?
There is no single answer to this question; the value of the pay-out which policyholders can receive depends on how the insurer invests the funds paid by their customers as premiums.
The firm’s investment strategy makes a difference, as do the ups and downs of the markets the firm invests in as well as the vagaries of the larger economy.
When Can The Funds Earned From An
Endowment Life Insurance Policy Be Withdrawn?
Not only can policyholders collect the earnings of their policy upon its maturity, they can also elect to cash out the policy before it reaches maturity.
While this does in a certain way defeat the purpose of an endowment life policy, it can be an option for people who need some help with a serious financial crisis.
The Different Types Of Endowment Insurance Policies
Consumers considering endowment life policies have a few different options available to them. The most common type of policy is a full endowment life policy.
These policies give the policyholder a cash value upon maturity which is equal to the amount of the death benefit the policy pays. Unit linked endowment policies give consumers more flexibility; the policyholder may decide which investment vehicles their policy will be linked to.
There is also lower cost endowment insurance
policies which provide a relatively small benefit upon maturity.
As far as term life policies go, endowment policies are generally more costly, though they provide policyholders with the obvious benefit of accruing cash value over the life of the policy rather than simply paying a death benefit.
It’s a decision which every consumer needs to make for him or herself; some people would prefer a lower premium for a simple term life policy while others may decide that they would be better off by purchasing an endowment life insurance policy and receiving the benefit of a pay-out of its accumulated value once the policy matures.