Log in or sign up to add this lesson to a Custom Course. Log in or Sign up. A life insurance endowment policy is a life insurance policy that helps the policyholder save money over a specified period of time. This money is then paid out at the end of the policy term. So think of it this way: if you are 30 years old and are thinking about purchasing a year term life insurance policy, but you also struggle when it comes to saving money, you could select an endowment policy.
What are endowment policies? | miamigfeescorts.com
Endowment life insurance is a specialized insurance product that's often dressed up as a college savings plan—these policies couple term life insurance with a savings program. As the policyholder, you choose how much you want to save each month and when you want the policy to mature. Based on your monthly contributions, you're guaranteed a certain payout, called an endowment when the policy matures. You can then use this endowment for your child's college tuition, fees, books, living expenses, and other costs.
What is an endowment policy and when should you go for it
Endowment policies are long term investments that include life insurance. You pay a set monthly amount for between 10 and 25 years, and when the policy matures you get a cash lump sum. Save a lump sum that you can spend however you like.
Endowments and whole life policies are two different types of permanent life insurance. Both accumulate cash value, unlike term life insurance, so policyholders feel they are getting some of their premiums "back". Both types of policies pay a lump sum of money either to beneficiaries upon the insured's death or back to the living policyholder when the policy's term matures. The difference is that endowments have a shorter coverage period and mature sooner, usually in 10 to 20 years.