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Endowments
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Endowments
Endowment policy is the appropriate choice for those who are looking for support in case someone will pass on, if they want to remain financially independent. It should be considered by every family, because the endowment provides the safety that there will be the possibility to pay for life’s necessities after the person insured will no longer be able to provide care.

The main reason to get an endowment policy is that you can feel relaxed and safe that even if you will not be around, your family will be able to go on without collapsing financially. This is the benefit of choosing this kind of policy.
Endowment insurance, also called as endowment life policy or endowment policy, is a kind of contract that guarantees a sum of money that the client or the beneficiaries will get at the end of the predetermined contract period, whether he/she lives until the policy matures or dies sooner. At the end of the insured period the client will receive the benefit of the insurance policy- the amount paid at death - unless he/she died earlier; in which case the beneficiary named in the policy will get the money, which means that the family will still remain financially independent.
What makes the endowment policy different from other insurance types is that it guarantees that either you or your beneficiaries will receive the sum of money not just if you live until the policy matures, but even if something happens to you that would cause your death.

Endowment life insurance also has the benefit of offering a savings element that will allow the cash value of your benefit to grow in time.

This type of insurance policy has its advantages and disadvantages like any other insurance. As we know, the main goal of an endowment policy is to ensure a living benefit to the insured client, so it can also be seen as a retirement fund because if you live past the maturity date, you can still use and enjoy the money you get. This is a great advantage. On the other hand, what can be considered a disadvantage is that its premiums are way higher than for a whole insurance policy while the coverage amount is pretty much the same. The cash value of the endowment insurance is also higher which makes it a better guarantee for loans and it makes it a great way to build up capital.

Endowment life insurance can easily be used for personal needs, as a replacement income, because it can give your family a safe source of money to pay the bills and dues that won’t stop coming in case of your premature death. Furthermore, if you live past the term set in the contract, you can use it as retirement income, which can be very helpful. In case you are a charitable person, you can use the endowment money to do good for others – you could name as your beneficiary a school, church or any kind of organization, making sure that your money will help others even when you are gone. Another benefit of an endowment policy is that you could use it for business needs: an endowment insurance fund can make a business run with operational capital even if the key person dies. Actually it is a business capital because since it has a high cash value, you can get a loan against it to start your own business, meaning that your request for a business loan will not be rejected, and even more, you will get lower loan repayment rates.

Endowments request more expensive annual premiums than whole life or term life insurance. Fortunately, as your children grow up and become financially independent, you will only have to take care of your spouse and yourself after growing old. The responsibility of taking care of your whole family reduces considerably from that point. Having this on your mind you can invest the endowment amount or buy a policy that gives you a monthly pension for the rest of your life. Since there are many possibilities to use the, endowment policies are very popular these days. An endowment policy is actually a combination of protection and savings.