If you want a life insurance plan that does not consider whole life as an option then an endowment life insurance policy may be perfect for you. To define, it is a term life policy in which you are insured for a set period of time. Your chosen beneficiaries will get the proceeds if you die within the time that your insurance still covers. If term life policies is what you are looking for you get to realize that this type of insurance policy has an added benefit. It basically gathers a cash payout over the years.
This means that you can get your money on its maturity date if by chance you did not die on the time you are insured. In the past, the policies were a bit different since they were taken out to provide funds for college or anything that a family may want money for at a future date. The investments of the insurance company will be the basis as to how much cash value can build up at any time. If the insured will cash out before the specified maturity date then the endowments can provide cash surrender value. Since this can protect a major disaster in financial setback, then endowments are used this way even if this is not being recommended.
The insured can actually choose from different types of endowments with different levels of flexibility for him to benefit. The full endowment policies is capable of providing cash surrender value that is equal to the death benefit. If the insured is allowed to decide which and how much amount of funds their policy will invest in, then it is a kind of unit-linked endowment. When a former policyholder has already gave up the policy but there is still potential for growth and cash value accumulating within the policy, then endowments will be sold to another now person to be insured. These are now called traded endowments. Last of all, if the insured does not die beforehand then endowments will be purchased to pay off the interest Joint mortgage protection. These are called low-cost endowments.
When you speak in general, tis type of insurance is really more costly than those other term life insurance rates that you find. Why is this so? The typical common term life insurance policy does not have an accumulated cash value unlike this type. Term insurance will surely pay the death benefit once the insured dies within the term covered by the policy. Comparing the rates would be easier when you choose between two options which are first, if you want the most affordable coverage, or second if you want more the coverage that will offer some additional cash back, but will cost a little extra per month.
