Reader’s Question:
I’ve heard about Endowment Life Insurance from an agent here in Clearwater, Florida. Can you tell me more about this?
Stein
Clearwater, FL
Endowment Life Insurance is a form of temporary life insurance coverage where you maintain the policy for a certain period of time (ten or twenty years usually) and once the maturity date of the policy is reached, the death benefits or lump sum payments are awarded to the policy holder or the insured, if still living or, in the event of the untimely death of the insured, awarded to the designated beneficiaries under the policy. The Policy could be considered having reached its maturity once a specific amount of payments or premiums have been made, the specific holding period of the policy satisfied or once the insured reaches a certain age.
So as you can tell, getting an Endowment Life Insurance Policy is one of the safest forms of investment that you can make since you and your beneficiaries are almost always guaranteed to receive the proceeds of the policy. The regular premiums you pay are fixed, and unlike some other types of life insurance, your money is not put into aggressive investment vehicles so don’t expect your money to grow very much, if not at all. It is highly recommended that you get a specimen copy of the endowment life insurance policy you choose there in Clearwater, Florida, better yet have multiple options to choose from and make sure you understand how their policy works and what stipulations in the contract might nullify you from receiving the death benefits in the future.
Tags: Life Insurance Policy, Endowment Life, Life Insurance Coverage