Endowment Life Insurance

What is your zip code? Do you use tobacco? Yes No What is your date of birth? Month January February March April May June July August September October November December Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Year 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992

Endowment life insurance works in the same way as a regular life insurance except that you will generally receive the face value of your policy even while you are still alive. Many people opt for an endowment insurance policy to fund their children's college education, to pay for a mortgage or to fund retirement. The maturity terms are normally 10, 15, or 20 years or until a person reaches an age limit, usually 65. However, some insurers offer lump sum payments in the event of terminal or critical illness or will pay out a death benefit on the early death of the insured.

What You Should Know Before Buying Endowment Life Insurance

It might seems that endowment life insurance is ideal, since you get paid while you are still alive, and indeed the money is a great way to fund a college savings plan, a mortgage payment plan or your retirement. However, there are a few things you need to know before you buy an endowment policy:

1. The premium amount is often higher on an insurance savings plan than on a regular life assurance plan, especially if the term of the contract is very short, say 10 years or less.



2. Your present and future personal financial situation should be assessed. It may not be the best savings vehicle when used on its own but can be an excellent choice in many cases as part of a savings portfolio.



3. The cash value of an endowment life insurance plan normally depends on how the underlying investments fare in the market. A wide range of investment vehicles are available, including many stock market and unit linked policies, and good investment choices can result in a high cash value while a poor choice of investments can lead to a disappointingly low cash value.

If this is not what you need then you are better off getting another type of life insurance plan which can specifically cater to your needs and provide your family with the financial protection and the guaranteed income which they need after you die.

Modified endowments, which are available only within the United States, were created because of concerns about endowment life insurance being used as tax shelters during the 1970s and 1980s. As a result, endowment plans are now subject to stricter tax regulations, as well as IRA-like annuity regulations for cases where death occurs before 59 and a half years of age. The Tax Reform Act of 1984 also contributed to lower tax benefits.

How much do endowment life insurance plans cost?

Premiums and coverage varies as with any life insurance plan according to such things as your age and state of health and also varies from state to state. Indeed, the difference in rate between states can be quite significant. This is why it is advisable to shop around for insurance quotes to get a better idea of what is available in the area where you live in.

To find a quote that provides for your needs for protecting your family and which also meets your investment requirements simply complete the form on the right-hand side of this page and an agent will search for the best available rates, savings and discounts from a wide range of providers and products and give you a range of quotes for endowment life insurance so that you can compare the information for yourself and select the best company.

This service is free of charge and there is absolutely no obligation on your part so fill in the form now and join the many individuals and families we help every day to find the life cover they need at a cost they can afford.

Home | Terms of Use | Privacy Policy | Endowment Life Insurance Contact Page | RSS Feed

General Life Insurance information