Endowment Assurance is a type of life insurance policy that provides both a guaranteed cash provision and death benefit. It is designed to offer financial security and savings over a specified period. Here are some key features and details of Endowment Assurance:
Minimum Entry Age: 10 years
Maximum Entry Age: 65 years
Maximum Age at Maturity: 75 years
Supplementary covers or riders can be attached to the Endowment Assurance policy to enhance its coverage. The specific riders available may vary depending on the insurance provider.
Endowment Assurance offers a guaranteed cash payout either at a specified time or in the event of the policyholder's death (referred to as the "death benefit"). The sum insured plus any bonuses that may have accrued are payable according to the policy terms.
Premiums for this type of policy are payable for a specified number of years or until the death of the insured, whichever comes first. The policyholder commits to making regular premium payments to keep the policy in force.
The policy acquires a surrender value after being in force for at least two consecutive years, provided that no premiums have been in default. The surrender value is the amount that the policyholder can receive if they choose to surrender or cancel the policy before its maturity date. The specific surrender value will be provided by the insurance company upon the policyholder's request.
Endowment Assurance policies can be used to meet various financial needs of the insured and their family. This includes providing financial support for retirement, funding the education of children, or offering capital for business purposes. The policy's guaranteed cash provision can serve as a source of funds to meet these goals.
Insurance companies typically offer tools or calculators to help individuals estimate the premium they would pay for an Endowment Assurance policy. Premiums are calculated based on factors such as the insured's age, sum insured, and the chosen policy term.
In summary, Endowment Assurance is a versatile life insurance policy that combines guaranteed cash provision with the potential for bonuses, providing financial security and flexibility. It can be a suitable choice for individuals looking to secure their financial future, provide for their loved ones, and have access to funds at a specified time or in case of untimely death.