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If you are the breadwinner and looking for a policy that provides financial risk cover for your family then you should consider taking out an Endowment Policy. Endowment policies are the most suitable of all insurance plans for covering the risks to a family breadwinner’s life.
An endowment policy is an insurance contractwherein a lump sum will be paid to you at the end of an agreed termin exchange for regular premiums. Examples of maturities are 10, 15 or 20 years up to a certain age limit.These types of plans are suited best to those who other than having a risk cover are also interested in a savings component at the same time. Basically, an endowment policy is type of life insurance policy which provides both an insurance cover and maturity benefits too. In case of demise of policy owner, the Sum Assured is paid to the beneficiary.
If policy owner survives, the accumulated amount along with all bonuses accumulated during the term of the policy is paid.It is this feature - the payment of the endowment to the policyholder upon the completion of the policy’s term - which accounts for the gaining popularity of endowment policies.Generally, Endowment plans have two types of bonuses:
- 1. Reversionary bonus, also called regular bonus is an annual bonus which depends on the performance of the insurer and is added to the fund every year payable at the end of policy period.
- 2. Terminal bonus is an additional loyalty bonus offered by the insurer at the end of policy term.
Alternatives to Endowment Policy are Whole Life Policy, Term Policy, Money Back Policy, Joint Life Policy, Children's Policy, Pensions Plans or Annuities, Women's Policy, Special Plans, and Group Insurance Policy.
The good point about Endowment plans is having both death and survival benefits.In addition, the bonuses accumulate over time to give good maturity lump sum.
The downside of this policy is that comparing to whole life policies, the premium rates for endowment policies are doubly higher and the bonus rates lower.Endowment plans are priced higher than term plans.
The main drawback just like in any investment that is exposed to potential for growth, there’s the risk that the money invested in your behalfcould reduce in value over the term. Henceforth, it is advisable that if you have an endowment policy and are relying on it to help repay all or part of your mortgage at some point in the future, it is always a good idea to regularly check its performance. This is the only way to foresee things to happen so that you can have opportunity to make other arrangements if you’re already aware there’s a shortfall in its projected performance.
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If you don't find the best value endowment life insurance quote now, over the lifetime of the policy this will cost you £1000's. Unlike other comparison sites we only provide quotes for Endowment Insurance which means you can speak to experts as well as getting great prices. Complete our form and find out your lowest quote.