Endowment Life Insurance Policies
If you are shopping around for a life policy to provide for your loved ones in case the worst happened then you should definitely consider taking out an endowment life insurance policy. These are not the most popular type of cover but they suit a lot of individual requirements. If you want the security and peace of mind that a plan will pay you and your loved ones a lump sum payment in the future, say 20 years time, and also want some sort of investment too, then this could be exactly what you are looking for.
So ultimately an endowment life insurance policy will offer life insurance protection as well as helping you invest a specified amount of money each month that will be invested and monitored by the a large investment house such as Axa or Prudential.
Why You Don’t See These Plans Advertised
These types of plans have been less popular as people have turned to buying cheaper term life cover that offers protection in the case of death, but does not include any investment element. When the contract expires the paperwork is ripped up and both parties simply walk away.
Some financial experts have suggested that families could take out term life cover and then invest the premium difference in a savings fund, ISA or other relatively low risk account. It is important to know that you can more than one option and as it is your money you need to take to the time to think about what you are doing and how you want to protect yourself and your family if circumstances change in the future.
Just Like Term Cover?
As stated above, it is not the same product as term life assurance, and should not be considered like for like. If you just want simple insurance incase the breadwinner dies, then choose term life cover and not an endowment policy.
3 Alternatives to an Endowment Life Insurance Policy
Endowment life insurance is somewhat an all-in-one package, it can act as a life insurance, cover mortgage payments and ensure future financial stability. But don’t get completely confused by its seemingly almighty abilities. And before you take the plunge and become a proud policyholder, take a second to ponder over its drawbacks as well.
A policy generally covers a period of ten to twenty years and also its rates are considerably high. So if you are a young gun just starting out in the world of financial insecurity or not as financially endowed as you would like, then this policy is probably not the right choice for you. But this is not the end of the financially stable world; there exist a lot of other possibilities for you to choose from.
We all have heard of a savings account, a simple yet highly beneficial banking tool. Keep your hard earned money safe with the added advantage of a favourable interest rate. It ensures that your family is protected from any future insecurity while you earn interest along the way. Endowment cover is quite often used as a cover in case of unemployment. But thankfully, it is not the only solution; an Income Protection Policy also offers a way out in case you find yourself stranded on an island of insecurity during these unstable times. The terms of this policy includes replacement income for up to twelve months in case of unemployment, which will ensure financial security until you get a new job.
In these economically unstable times, Endowment Life Insurance is not the only way to cover your mortgage payment. Mortgage Payment Insurance ensures that your mortgage is paid on time even if you are unemployed. However, it is important to include a job-loss rider, so that you can keep your house while job hunting. So, choose the right financial path and steer clear of all insecurities.
Companies with Endowment Life Insurance Policies
You can usually not go too far wrong if you get quotes from the largest insurance companies such as Aviva, Tesco Bank and Axa PPP. These types of companies offer most types of policy, even if they only seem to advertise certain types of plans. It also costs nothing but time to go and see an Independent Financial Advisor and speak with the broker to see what companies offer competitive products that serve your needs. Here are some companies that you should consider when taking out a new policy:
You can find decent information on video websites such as YouTube or Vimeo. Here is one that we like to show potential customers:
Ask an Expert
We would love it if you got in touch with any questions you have about endowments or life cover in general. We will get back to you with advice that you can use to weigh up your options and endeavour to get the policy that suits your family the very best.more information