Endowment Life Insurance
An endowment life insurance policy is remarkable in many respects because it assures you and your beneficiaries of a fixed sum of money regardless of whether your policy matures or you happen to die in unforeseen circumstances. Another great advantage with the policy is that in includes a savings option and your cash value can grow with time. If you are alive at the time your policy matures, then you are entitled to get a large sum devoid of any charges, applicable fees or pending loans.
The policy is beneficial since it provides living benefits to the insured persons and life insurance coverage becomes the secondary level of protection. The cash value of such a policy is typically more. However, the disadvantage is that compared to regular life insurance policies, the premiums are higher.
Different uses of endowment life insurance policy, both personal and commercial:
- It can act as replacement income providing your family with a guaranteed source of money for paying off their bills and other dues in the event of your untimely death.
- The policy can help you contribute to charitable causes even after your death when you declare a church or school or any other voluntary organization as your beneficiary.
- It can pay inheritance taxes attached to your estate thus relieving your family or spouse from the burden of paying these amounts.
- It may help to maintain a business by providing operational capital in the event of the untimely death of any partner.
- The policy comes with a high cash value and can be used as capital for starting one’s own business venture.