What is endowment life insurance?
Endowment life insurance is unusual because it s designed to pay you benefits while you are still alive rather than pay your beneficiary after you have died. Endowment life insurance pays the face value of the policy either at the insured s death or at a certain age or after a number of years of premium payment. A whole life insurance policy is an endowment at age 95 (or 100) policy. Unlike whole life, an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy. Endowment life is a method of accumulating capital for a specific purpose and protecting this savings program against the saver s premature death. Many investors use endowment life insurance to fund anticipated financial needs, such as college education or retirement. Premiums for an endowment life policy are much higher than those for a term life policy, so you might be better off
