All About Endowment Life Insurance

Update Sept. 06 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-09-05T07:01:00.000-07:00

Endowment policy is an insurance plan that is structured to pay a lump sum once the policy reaches maturity, thus it is financial protection for policy holder and the relatives of his. The payment of the policy may vary depending on the term of the policy itself in that if the term vary in terms of years to maturity you will very well be certain the payment will differ. Now the issue with endowment policy is that the coverage may also restrict payout based on the cause of death, illness or accidents that are not known as at the policy is entered into. There are different formats that determine the payout of the policy for cashing in on the policy like considering the time the coverage has been in force as well as the amount of cash that has been paid into the policy to the date payment is effected or requested.

The essence of any endowment policy like I said is to provide financial protection to the beneficiary once the contract reaches maturity. The pay is usually sum assured which is paid at the maturity of the policy and depending on the performance of the policy, there might be some additional benefit provided the policy performed well. In essence, endowment policy really makes you an assured man of better future in case anything contrary happens. Now endowment life policy is an insurance plan as well which includes provisions for early payout should the assured party die before the contract lapses. There are some certain conditions that might prevent the insured party from being deprived of his benefit like in the case of certain death that are disallowed, such insured party will be prevented a payout on the policy. Take for example, the insured commits suicide or due to medical condition that was not disclosed during the signing of the policy, if it is proven that the beneficiary is responsible for the death of the insured, then he will not be paid on the proceed of the policy. It will be wise to protect yourself financially by going to endowment policy center for detailed tips there

kaz rel is an endowment life insurance policy enthusiast that enjoys sharing quality contents with others. He has many articles at his blog at endowment life policy HERE

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Article Source: http://EzineArticles.com/?expert=Kaz_Rel

Update August 20 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-08-19T10:24:00.000-07:00

Endowment Life Insurance is defined as types of decreasing term policy with a large portion of premium deposited into a investment account. The premium of this policy is high if compare with other insurance policy but the amount payable is within short term. The policy owner can cash out the money when the policy expired in 20 years or as soon as reaching age of 65. This policy provides coverage to the buyer for a specified term and the sum insured is decreased over the period of insured recipically to the growing value of the investment. It is suitable for those who want coverage and at the same time can have big saving. Also, up on the death of policy insured, the amount of insurance plus the investment are payable to beneficiary tax free.

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Endowment Life Insurance
By Robert C Eldridge Jr

There are many different types of insurance policies that are available, but some people choose endowment life insurance because of some of the benefits that go along with it. This type of insurance policy pays out upon maturity or upon the early death of the individual that holds the policy. You can choose a number of different terms for this type of insurance policy, generally 10, 20 or 30 years. There may also be age limitations as to when the policy will mature.
One other option that you may have available to you is that there are some endowment life insurance policies that will pay out upon the policy holder having a critical illness. This can benefit everyone involved, as it is often a time of increased financial stress and you may need the money that is in the policy in order to pay for medical expenses as well as for a loss of income. It would be a good idea for you to check with your insurance agent if your policy will pay out should you happen to become critically ill.
One of the benefits of choosing this type of insurance policy is the fact that, regardless of how much you have paid in, the beneficiaries are going to receive a settlement according to the terms of the policy. If you should happen to take out a 30 year policy and something should happen to you after just a few years, the beneficiaries are going to receive the same amount of pay out as they would if it had matured at 30 years. Many people like the peace of mind that they get from knowing that their loved ones will be taking care of while at the same time, they are investing in their own future.
Of course, this type of policy is not going to be for everyone so it will be a good idea for you to examine all of your options in advance. This would not only be true of checking out other types of life insurance but it is also true with getting various quotes from different insurance companies. Along with that, you would want to check into the tax benefits of these different types of insurance policies as there are differences in that area as well. This can really help you to choose something that will not only benefit you now but will benefit everyone involved in the future.
Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.
Call Robert Eldridge directly at 800-643-7544.
Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors

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Article Source: http://EzineArticles.com/?expert=Robert_C_Eldridge_Jr

Update August 03 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-08-02T16:00:00.000-07:00

There are many different types of insurance policies that are available, but some people choose endowment life insurance because of some of the benefits that go along with it. This type of insurance policy pays out upon maturity or upon the early death of the individual that holds the policy. You can choose a number of different terms for this type of insurance policy, generally 10, 20 or 30 years. There may also be age limitations as to when the policy will mature.

One other option that you may have available to you is that there are some endowment life insurance policies that will pay out upon the policy holder having a critical illness. This can benefit everyone involved, as it is often a time of increased financial stress and you may need the money that is in the policy in order to pay for medical expenses as well as for a loss of income. It would be a good idea for you to check with your insurance agent if your policy will pay out should you happen to become critically ill.

One of the benefits of choosing this type of insurance policy is the fact that, regardless of how much you have paid in, the beneficiaries are going to receive a settlement according to the terms of the policy. If you should happen to take out a 30 year policy and something should happen to you after just a few years, the beneficiaries are going to receive the same amount of pay out as they would if it had matured at 30 years. Many people like the peace of mind that they get from knowing that their loved ones will be taking care of while at the same time, they are investing in their own future.

Of course, this type of policy is not going to be for everyone so it will be a good idea for you to examine all of your options in advance. This would not only be true of checking out other types of life insurance but it is also true with getting various quotes from different insurance companies. Along with that, you would want to check into the tax benefits of these different types of insurance policies as there are differences in that area as well. This can really help you to choose something that will not only benefit you now but will benefit everyone involved in the future.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.

Call Robert Eldridge directly at 800-643-7544.

Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors

Article Source: http://EzineArticles.com/?expert=Robert_C_Eldridge_Jr

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Update July 17- 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-07-16T18:15:00.000-07:00

Life insurances are mostly designed for long term, some of the policies can have refund but some are not, depends on which policy you purchase. For example term life insurance has no cash value, it is designed solely for life protection, upon the maturity the buyer receives no refund, and all the premiums paid will not get back. Whole life insurance has cash value, but it has no maturity, it is a life-long investment.

Some people want to have protection and have saving at the mean time; endowment life insurance is the ideal policy, because the buyer can have not only protection, the maturity of the policy is short, and he also benefits the interest and the full amount premium refund upon maturity.

An ideal plan for saving
The premium of this policy is high but the amount payable is within short term, the policy holder can cash out the money in 10 to 20 years time. This policy provides coverage to the buyer for a specified term and the sum assured is payable to the policyholder along with the entire bonus accumulated upon the maturity of the policy, it is suitable for those who want coverage and at the same time can have big saving.

Different types of Endowment Life Insurance
Endowment plan is categorized as full endowment, modified endowment, low cost endowment and traded endowment; it is advisable to find out which product is suitable for you.

Surrender of policy
In the event of surrendering the policy the buyer can cash in his money earlier, he will receive the surrender value, the payout is determined by the insurance company, and it depends on how much premium paid.

Premium rate
This policy covers the buyer death benefit and has an early maturity, therefore the premium is higher than whole life insurance and the bonus rates lower, and the buyer will receive his premium payments upon maturity. The maturity ranges from 10 years to 35 years, the shorter the period the higher the premium.

Endowment life insurance has various products, find out more by consulting the insurance agents or log on to: endowment life insurance site, or visit us at:
http://www.indianapolislifeinsurance.net

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Update June 27- 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-06-27T06:58:00.000-07:00

By Chris Roche

The financial services industry has taken a few hard knocks over the years, possibly starting with the mis-selling of endowment policies, this has caused many people to be cautious when it comes to taking out a mortgage or some form of income protection insurance. Many first time buyers who took out endowments did not fully understand the implications of an interest only mortgage supported by an endowment. For many the realisation came all too late that the amount they had borrowed had not actually reduced so they still owed the lender the same amount as in day one. This of course led to numerous complaints and in many cases when the mis-selling of the endowment was proven the borrower was compensated accordingly.

So what was the real problem with endowments, as they did pay out the full amount that was owed on the mortgage should any of the policyholders die prematurely. Well the real problem was caused by using growth rates on the endowment quotation with a range of 8% to 12% widely used for the investment calculation. To expect this average to be met over a large number of years proved unrealistic and left many borrowers in the lurch. Other areas that left a bad taste in the mouth have been the investment advice given out to many of the older generation who's money went into stocks and shares. Some of these people had a low risk profile and would not have invested in this way had the old adage of shares can go down as well as up had been properly explained. Of course many of these investors have done well when they have been prepared to leave their money locked in for the medium to long term but for those requiring immediate access it proved a failure as many panicked when their investment lost money in the early stages and cashed in their shares.

There are of course other areas that have left the public distrusting financial institutions, very high bank charges for exceeding your overdraft limit, the PPI scandal, massive interest rates on credit cards and many firms being fined, censured or even closed down by the FSA. So how do you develop client trust? Well surely the first step is to know your client and fully understand their needs and aspirations. By completing a Fact Find this gives you an understanding of their current situation so you can come up with the right solutions for both the present and the future. Showing your client you have their interests at heart is easily achievable by printing off research documents that prove you have found them the most efficient and cost effective way of meeting their needs. If you concentrate on building up this relationship over time you will truly develop a bond between you and the client that will last and they will feel much more secure about you dealing with their mortgage, endowment or income protection insurance.

Written by E-Commerce Manager of Armchair Mortgages, Chris Roche. For more information on income protection, mortgage protection or life assurance plans check out our site and give us a call for a UK income protection insurance quote.

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Update June 07- 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-06-07T06:45:00.000-07:00

By Jerry Figueroa Lee

Life Insurance is one of those things we try not to think about, as nobody likes thinking about their own death or making plans for it. The truth however, is that making sufficient provision for loved ones and dependents whilst still alive, is the best thing we can do to protect them from financial strain or hardship in the future.

Life insurance comes in many different forms, and can become somewhat confusing just with the different terms 'Insurance' and 'Assurance'. To simplify matters the following guide should help you understand the differences.

When it comes to the difference between insurance and assurance, there is no real difference, although the most common term is Life Insurance. The subtle difference however is that insurance is taken out to cover a future event that may happen such as with a car insurance policy, where as a life assurance policy provides cover for an event that will definitely happen such as death.

In the case of death, both types of policy pay out a defined lump sum to the named beneficiary, and with the addition of critical illness cover to a policy, would pay out the same sum prior to death if diagnosed with a terminal illness or critical illness covered by the policy.

What types of life insurance are available?

There is a wide variety of insurance policies available in the market, but when looking to protect your mortgage the following policies are the main ones to be considered.

Mortgage Life Insurance

Policies designed to repay the mortgage in the event of death or diagnosis of an earlier critical illness fall into two categories. The first is a 'Mortgage Life Insurance' otherwise known as a Decreasing Term Assurance, and the other is a Level Term Insurance otherwise known as a Term Assurance Policy.

Decreasing term insurance

This type of policy is set up to pay out a lump sum sufficient to repay the outstanding balance of the mortgage in the event of death or earlier critical illness. This type of policy is used alongside a standard repayment mortgage where the policy reduces inline with the reducing mortgage balance. There is no investment element of any type with this policy, and so it simply pays out the agreed lump sum upon acceptance of a claim. If you survive the policy term, then there is no payment made.

Level term insurance

The only difference with a level term assurance policy is that the sum insured does not decrease over the policy term. This type of policy can be suitable to run alongside an interest only mortgage where the mortgage balance remains constant because no capital is repaid in a monthly basis. As with a Mortgage Insurance policy, the level term insurance policy requires the payment of a monthly premium. In event of a claim the insured lump sum is paid out the the nominated beneficiary.

Low Cost Endowment Life Insurance

Whilst this is referred to as an Insurance policy, an endowment policy is a savings plan with a decreasing term assurance policy that runs alongside the savings plan. The savings plan is arranged with the expectation that it will grow to a sum sufficient to repay the mortgage at the end of the term. The monthly premium is calculated accordingly. In the same way as a decreasing term assurance policy will guarantee to repay the outstanding mortgage balance in the event of death for a repayment mortgage, the same principle applies to the endowment policy. As the savings increase in value the insurance sum assured reduces, with the combined amounts always being sufficient to repay the mortgage in the event of a claim.

What other options are available?

Critical Illness Benefit

With all policies you will have the option to add additional benefits. The main one of these is Critical Illness Benefit which covers various different critical illnesses such as Heart Attack, Stroke and Cancer. Different providers have different definitions, and so exclusions, limitations or restrictions will be applicable to most policies. A typical limitation of cover will be for some of the less advanced cancers that are more readily treatable.

The following represents the basic list of illness covered under a critical illness policy - Alzheimer's disease, Aorta graft surgery, Aplastic anemia, Bacterial Meningitis, Benign brain tumour, Blindness, Cancer, Cardiomyopathy, Chronic lung disease, Coma, Coronary artery by-pass surgery, Creutzfeldt-Jakob disease, Deafness, Dementia, Heart attack, Heart valve replacement or repair, HIV or AIDs from an assault, blood transfusion, occupational duties or accident, Keyhole heart surgery, Kidney failure, Loss of independent existence, Loss of limbs, Loss of speech, Major organ transplant, Motor Neurone disease, Multiple Sclerosis, Paralysis/Paraplegia, Parkinson's disease, Stroke, Third degree burns, Total and Permanent Disability.

Waiver of premiums

In the event that you are unable to work due to ill health it is possible to insure your monthly insurance premium. So that in the event of an accepted claim premiums would continue to be paid until the end of the policy, a specified age, or you become fit to return to work.

How much does suitable Mortgage Life Insurance Cost?

This depends on the individual life insurance companies underwriting criteria. Each provider applies different criteria to their quotes, which is why some policies are cheaper than others. The main factors that govern the cost of life insurance are:

Age, gender, height and weight, medical history, history of family health, marital status and the number of children you have, your occupation, whether you are a smoker or non-smoker, any dangerous sports you take part in such as sky diving, alcohol consumption, and the purpose of the insurance.

Life Insurance to protect your home and loved ones, may not be as expensive as you think. For peace of mind why not find out how much it costs by clicking on the following link for a mortgage life insurance quote, or term insurance quote. It only takes two minutes for an instant quote to be emailed to your inbox for future reference.

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Update May 18 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-05-19T04:26:00.000-07:00

By William Hargreaves

I have found several advertisements in national papers recently from companies offering to sell my endowment policy. However, which is the best option to get the best return?

It is estimated that over 4 million with-profits endowment policies were sold by insurance companies in the eighties and nineties. These policies were designed to last for up to 25 years and increase in value each year as a bonus is added to the amount of money that you paid in every month plus an estimated big bonus at the end of the term. Most of these policies were estimated on annual bonuses accruing at up to 9%, however in reality, with the fall in interest rates over the last 10 years, most policies are currently returning less than 1% per year.

These with-profits endowment policies were sold as a means to repay an interest only mortgage at the end of the mortgage period. Industry experts now predict that 9 out of 10 policies will not reach their target figure to repay the mortgage. With nearly 4 million policy holders having been informed by their insurance companies of the potential endowment shortfall, there is a big market out there for Traded Endowment Policies.

Many people have now made other provisions for paying off there mortgage, like converting them to a repayment type where the monthly payments include both interest and capital. So what do you do with your old policy?

Selling your endowment policy may give you a better return than just to cash in or surrender your endowment policy. However you may want to replace the life insurance component with a more suitable product.

I decided to sell my endowment policy and I accepted an offer that was 10% higher than the surrender value so I was happy. If you think it is time to sell your endowment policy then make sure that you check out all your options, starting with contacting your insurance company to get a valuation. They will advise you on any alternative options that they can offer to you as well. Read more about what investigations I did before selling my endowment policy at http://SellEndowmentPolicyReview.com

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Update April 29 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-04-29T05:54:00.000-07:00

By Steven D Wright

The endowment shortfall is an issue that has effected hundreds of thousands of people across the UK. A conventional endowment policy is a life insurance contract which will pay a predetermined lump sum following the death of the life insured. An endowment policy is also an investment policy as part of the premium is paid into one of the insurer's with profit funds. As the policy progresses a value is accumulated and is supposed to meet a target at the end of the policy, upon assumed growth rates. At this point it matures and pays out a final valuation to the consumer.

The sum insured is split into two elements, the guaranteed sum assured which is an amount that should be guaranteed to be paid out at the end of the policy and the mortgage sum assured which is the guaranteed sum assured combined with the total life cover in place.

Bonuses are paid each year called reversionary bonuses and these accumulate and are paid at maturity. The insurer will announce at what rates these bonuses are applied at each year. There is also another possible bonus applied to the policy upon a claim or at maturity which is called the terminal bonus. Again these rates are announced by the insurer each year and are not guaranteed to be anything at all.

As previously mentioned the policy is an investment and has a surrender value which is made up of the bonuses, premiums paid and how long the policy has been in force.

It is possible that when upon any claim or early surrender that the policy can be penalised due to poor market conditions. This means that the surrender value will have a Market Value Reduction or Adjustment made to it. This is applied to protect other policies that remain invested in the with profits fund that these policies are invested in.

The endowment shortfall has been a result of the poor performance of the insurers' with profits funds. Bonuses have also been low or non existent and whereby upon sale the policies were made out to hit or even exceed at target at the end of the policy they have been falling well short.

The main concern is that the possibility that there could be a shortfall was never made clear at the beginning of the policy by which ever company or agent that was responsible for selling the product.

Throughout the term a consumer can ask for a projection from that point until the policy is due to mature, this is called an estimated maturity value. This will show upon 3 different assumed growth rates what the policy will likely pay out at maturity. This can show a shortfall from early on and people that have been actively watching their policy have been able to take action but unfortunately many people don't find out until a lot later or even at the end and this can be a very problematic surprise!

Due to the backlash that has come from the endowment shortfall problem insurers have seen consumers complain in vast numbers as have financial advisers and any other people or companies responsible for selling these contracts. Companies have been set up to deal with mis-selling complaints on behalf of consumers and also there are a range of market maker companies who are willing to buy endowment policies from consumers for a competitive price so they can keep the policies as collective short term investments. This is a very popular choice for people that are not willing to see the endowment policy through to maturity only to be faced with a huge endowment shortfall. It is at the very least a way of cutting their losses.

Steven D Wright worked for many years in the offices of one of the UK's largest insurance companies. His websites on Life Insurance Questions and Life Term Insurance Policy explain in straight forward language the intricacies of the life insurance world.

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Update Mar. 28 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-03-29T05:16:00.000-07:00

By Robert Prime

Endowment policy is a combination of life insurance and investment growth saving plans. It is a premium based package that is valid for a specified period. The premium paid by the policy holder into the endowment is invested by policy office in the stock market. On the maturity of the endowment policy the policy holder is paid the agreed amount along with bonuses. Incase the policy holder dies in mid-term then the insurance amount is paid to his beneficiary. Endowment policies are also used for repaying the mortgages but incase of endowment mortgage the monthly premium will also include the interest on the loan.

Evaluate your needs: There are various types of endowment policies namely non-profit Endowment Policy, Traditional With Profits Endowment, Low Cost Endowment Policy, Unit Linked Endowment Policy, and Traded Endowment Policy. Each has its own pros and cons as their workings and methods of growth are different from each other. It is advisable that the policy holder should evaluate his financial needs and consults a professional before buying an Endowment Policy. Educate yourself to understand the features of each type of insurance policy and then select the policy that benefits YOU personally and suits YOUR needs.

Check the reputation of the insurance company: Make sure you select the top endowment company for buying an endowment policy. The reputation and previous records should be checked thoroughly before making the final decision to buy an endowment. Find out the company's market standing. Don't trust your agent blindly and verify the facts yourself. Go for company with credible ratings given by a credible agency.

Evaluate the Front-End Loading: The set up cost, administration charges and commission payments are usually higher in the early years and are hidden within the monthly premiums. These initial costs are known as front end loading. Therefore, before you choose an endowment find out the charges and past performance of the fund.

Check the Endowment Mortgage Fee: Incase of endowment mortgage, calculate the mortgage fees carefully and try to evaluate the mortgage package before buying an endowment policy. At times, the lender charges additional front loan or processing fee, so carefully plan the investment to avoid defaulting.

Endowment Selling and Surrendering Options: A good alternative to surrendering is endowment policy selling. In this, the policy holder can sell the policy in TEP market and fetch a fair value of the policy. The main advantage here is that the policy holder usually gets much more than the surrender value offered by the insurance company.

More Endowment Policy Buying Tips

Take help from a financial consultancy as it is a long-term investment.
Check the amount of premium payments and your affordability.
Carefully read and review the insurance agreement before signing for it.
Invest only if you intend long-term investment as surrendering it in early years can prove costly.
Do thorough study and clear out all your doubts with insurance company and the financial advisor before you strike the deal.
Check the flexibly plan and alternate options for protection against uncertain changes in your financial needs.
Select a reliable insurance company and choose a right policy to gain maximum benefits and tax relief.

For selling or surrendering your endowment policy, contact www.endowment-policy.co.uk. You can also seek expert advice for valuation and get free compensation assessment of your endowment policy.

Robert Prime is a professional author who has written many articles on various topics & this time writing article on Endowment Policy Buying Guide.

For more details about Endowment Policy Buying Guide visit: http://www.endowment-policy.co.uk

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Update Mar. 10 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-03-10T05:31:00.000-08:00

By Kirsty Joyner

Endowment insurance is a type of life insurance that uses an investment scheme to increase your eventual pay out value. It works by you deciding the length of policy you would like, usually a minimum of ten years, and you paying a certain monthly premium to the insurance company. The company will invest some of the money you pay, and any investment returns will be added to your eventual payout package. In the event of your death this lump sum, known as the 'maturity value', will be paid to your chosen beneficiary (e.g. a spouse). If, however, you outlive your policy you will get the payout anyway, this differs from a normal insurance policy where you don't get any pay out if you outlive your policy.

This type of policy is similar to term insurance because the policy only lasts for a certain amount of time but is akin to whole of life insurance due to the guaranteed payout. Due to the fact that you are guaranteed a payout, endowment insurance usually requires you to pay higher monthly premiums. Despite of this they are more risk free and unless you are looking for the cheapest deal, would be a good way to go about life insurance.

Like most policies, not only will it cover you in the event of your death but often covers you in the event of you contracting a terminal illness.

A useful thing to know is that if for some reason you don't want to continue with your endowment policy, you can often sell it, as there is a thriving second hand market. You can't often do this with a regular life insurance policy as they're just not worth enough.

It is important to note that although this type of policy uses investment, there are better alternatives if you are just looking to invest or save long term, including savings accounts.

To learn much more about different types of life insurance click here, where you'll find extra valuable information including: rates, other types of life insurance, life assurance and much more.

To find money saving tips for life insurance click here This article was brought to you by Kirsty Joyner

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Update Feb. 16 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-02-16T04:03:00.000-08:00

By Susie Cusick

Although there are many options surrounding insurance policies, you may wish to consider taking out endowment life insurance. This option is slightly different from many standard life insurance policies, in that you receive funds whether you live or die.

In some respect, an endowment life insurance policy can be likened to a term life insurance policy. That is to say, that it will be limited to a specific amount of time, generally 20 or 30 years. The difference is that an endowment life policy will pay out whether you pass on during this period or not. It is a win-win situation as you will receive the cash if you live out the years until the policy expires. The term life insurance option does not pay out if you reach the end of the time alive.

An endowment life insurance policy can also be cashed in early. Choosing to do this will mean that you receive less than you would if you let it run, but you are guaranteed some of the funds to be able to use them whilst still living. For example, if you cash in a policy in the fifteenth year and it is a twenty year policy, you will receive approximately 50% of the amount you would have got once the policy ended. The amount you get will differ depending on the insurers and what agreements were made when the policy was started.

The major drawback of this type of insurance is that you are likely to have to pay a high premium than you would with any other kind. It is possible to get around this by getting a low cost endowment policy. This does mean lower premiums; however, the amount that will be paid out will decrease over time.

Alternatively, you could choose to get a return of premium life insurance policy. This is a fairly new insurance product but is designed to give you the best of both worlds. It is set for a specific period of time like other insurance products and you pay a set amount each month. If you die within the period, your beneficiary will receive the death benefit.

Should you live through to the end of the policy, you will receive your premiums paid back to you in full. There is no tax payable on the premiums you have made and so there will be no reduction in the amount of money that is returned to you. You can also receive some return of premium if you cancel the policy before it is due to expire. Essentially, this policy is a way of ensuring you receive money back whether you do or don't die.

If you are looking to get lower premium quotations, then you need to know that there are a few factors that determine how much you pay. Age is a huge part when taking out in insurance. The younger you are, the more likely the premium will be minimal. This is one reason to arrange life insurance before you reach your prime. Insurers will also look at issue such as smoking. Non-smokers are generally paying 50% less on their premiums than those who choose to smoke.

You can find out all about return of premium insurance and endowment life insurance policies from your financial advisor or insurance agent. Take the time to look at the policies closely and ask any questions that you have. If you feel you are ready to buy these policies, most providers have a quick and straightforward application form on their websites.

Be sure to check out UncommonLifeInsurance.com for comprehensive information on life insurance advice. To find all the advice and insights that you may need about guaranteed life insurance at your fingertips, Follow the links right now!

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Update Jan. 28 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-01-28T04:47:00.000-08:00

By David Miles

Endowments and endowment mortgages have received a lot of bad press in recent years, amid concerns over falling policy values and accusations of endowment miss-selling.

This article attempts to answer some of the questions and concerns you may have about the way endowments work, what's happening to them, and what you can do to ensure your mortgage is paid off at the end of the term if you have an endowment
mortgage.

What is an endowment mortgage?

There are two basic types of mortgage. The first is a repayment mortgage, where you make one monthly payment to the lender which is part interest and part repayment of the original capital.

Then there are interest-only mortgages, where your monthly payment to the lender is just the interest on the original loan and the mortgage debt remains unchanged. You then make separate payments into an investment scheme (such as an endowment), with
the idea being that at the end of the mortgage term this investment will have grown sufficiently to repay the mortgage.

An online mortgage calculator can give you an idea of the difference in payments to your lender between an interest-only mortgage and a repayment mortgage.

Interest-only endowment mortgages were very popular in the 1980s and 1990s and were often chosen in the belief that the endowment would end up being large enough to clear the mortgage and still leave a tidy sum of money left over as a bonus.

How do endowments work?

An endowment is a long-term savings policy, typically running for ten to twenty-five years. An endowment plan has what is known as a "sum assured" value. If the policyholder dies during the life of the endowment, it pays out the sum assured. In the case of endowments linked to mortgages, the sum assured is equal to the size of the mortgage. The payout in the event of the death of the policyholder is guaranteed but, if the policyholder survives, the final value of the endowment at the end of its term is not guaranteed.

Endowments can be unit linked, which means that you buy units in a fund, or they can be "with profits".

How does money grow in a with profits endowment?

There are two ways in which a with profits endowment can increase in value. Firstly, the insurance company may add a bonus to your policy each year. This is known as a reversionary bonus and is usually a percentage of the amount of profit made by the fund over the previous years.

The amount added in this way may only be a small amount. However, once added, these bonuses cannot be taken away - hence the name reversionary bonus - and will belong to you when the policy matures.

Then there is the terminal bonus. This is a separate sum of money which the insurance company can add to your endowment policy when it matures. These terminal bonuses are discretionary and may not be applied at all.

What are the advantages of with profits endowments?

The idea of a with profits endowment is to smooth out fluctuations in the stockmarket.

With a non-with profits endowment, your investment is linked 100% to the stockmarket. Therefore, there is always the possibility that the investment value could fall just at the time when you need the money.

By using with profits endowments, insurance companies get round this problem by giving you a slightly smaller percentage of any fund growth as an annual bonus and try to smooth out future annual bonus declarations.

The point of this is to try to ensure that, no matter what happens to the returns of the fund, you are guaranteed a certain minimum amount when then endowment policy matures.

Why don't you get the entire year's gains as a bonus?

On the one hand, the insurance companies and their fund managers want you to have as much security as possible - hence the reversionary bonuses which cannot be taken away at a later date.

On the other hand, they are also trying to maximise long-term growth by investing your money in stocks and shares, property, gilts, and cash. All of these involve a degree of risk.

What is the problem with endowments?

Anyone taking out an endowment policy, whether on a with profits or unit linked basis, has to be given a written illustration by the insurance company of how much the policy might be worth at maturity. When providing these illustrations, insurers have to make an assumption as to the rate of growth per annum that will apply to the money you are paying into the endowment. This assumed rate is known as the projected rate, and there is no guarantee that this rate will be met in reality.

Until a few years ago, the projections were usually based on a mid-range growth rate of 7.5% per annum. In the early 1980s, the assumed growth rates used in the illustrations were even higher. Therefore, the monthly endowment premiums were low by today's
standards, because they were set to reflect these high projected growth rates.

Interest rates and other economic factors, such as stock market growth and interest rates, are much lower now than they were in the 1980s and 1990s, so it has now been necessary to reduce projected rates of growth for people taking out a new endowment policy today. As a result, the monthly premiums for a new endowment policy today will be higher than they were in previous decades.

How does this affect existing policyholders?

Because actual growth rates have been lower than the projected 7.5% rate, an endowment policy taken out in the 1980s or 1990s may now not be worth enough at maturity to pay off the interest-only mortgage to which it is linked.

Insurance companies are therefore assessing the state of people's policies and contacting them to advise what action they should take now to avoid a potential shortfall at the end of their mortgage.

How will I be affected?

In most cases, if you took out a with-profits endowment in the mid-1980s or earlier, the fund should be sufficient at maturity to pay off the mortgage. This is because the money in your endowment policy will have benefited from the higher rates of interest and better stock market growth of the 1980s.

But, the shorter the length of time your endowment has been running, the greater the potential for a shortfall at maturity.

It is impossible to predict exactly how large this shortfall may be, as so much depends on future fund performance between now and the time when your endowment matures. Insurance companies are trying to assess the issue by looking at how much has been
accumulated in your fund so far and making more conservative estimates about future growth.

What can I do now?

There are a number of options:

1. You can increase payments into your existing endowment policy (subject to Inland Revenue rules), or take out additional endowment policy with the same insurer or a different insurer. However, you may decide you don't want to be tied into another
endowment.

2. You can ask to extend the term of your endowment policy, subject to your mortgage lender agreeing. This is probably not a good idea if it means your policy would continue beyond your retirement age.

3. You can set up an additional investment, such as an individual savings account (ISA). An ISA may be cheaper and can offer a wide range of investment choices to suit your attitude to risk.

4. You can ask your mortgage lender to switch part of your mortgage (equivalent to the projected shortfall on your endowment) to a repayment mortgage. You can get an idea of the costs of the new repayment part of your mortgage by using an online mortgage calculator.

5. You can use any other spare lump sum to pay off part of your mortgage. You will need to check first to see if this would make you liable for any early redemption penalties from your lender.

Which is the best option?

Everyone's situation is different, and everyone has their own particular preferences. If you are unsure what to do, you should take professional mortgage advice to help you review your options and come to a decision as to what to do.

Should I just cash in my endowment?

This would almost certainly be a mistake. Many endowment policies are structured such that the management charges are highest in the early years. If you surrender the policy early on, the amount you get back may well be less than the amount you have paid in up
until now.

Also, you need to bear in mind that a large proportion of the final value of a with profits endowment depends on its terminal bonus. The size of this bonus will not be known until the policy matures.

So, the best strategy is normally to keep the endowment in place. If you need to cut down on your monthly outgoings, you can leave a policy "paid up" (although you may incur penalties for doing this). This means that you do not pay any more money into the
endowment, but leave it to mature on the original date for a lower amount. If you do this, you will need to make sure you still have sufficient life cover to protect your mortgage.

It is possible to sell endowment policies on the second-hand endowment market. The amount you get will depend on the policy and how long it has left to run. Again, this is an area where you would be well-advised to talk to a professional before taking any
action.

Please note that this article is for general guidance only and does not constitute financial advice. You should seek professional advice with respect to your own specific circumstances.

------

Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

David Miles is the editor of a number of personal finance websites including UK Mortgages & Remortgages and The Cash Clinic - a UK Personal Finance Portal [http://www.thecashclinic.com].

What is Endowment Insurance?

By Steve Sterling

In Life Insurance, by Dan McGill, 1967 Edition, we read, “from the standpoint of structure, it may be said that an endowment policy is a combination of pure or level term insurance and a pure endowment. The same description may be applied to a whole life policy, which is simply a combination of term insurance for a period extending to age one hundred and a pure endowment for the same term.”

Barron’s Dictionary of Insurance Terms by Harry W. Rubin, third edition, 1991 defines PURE ENDOWMENT as “Life insurance policy under which its face value is payable only if the insured survives to the end of the stated endowment period.”

The Handbook of Insurance by Clyde J. Crobough, 1931, speaks of the attributes of endowment insurance: “Some of the special merits of the endowment policy may be summarized briefly: 1. Is a method of compulsory saving. 2. Combines protection and investment. 3. Helps to create funds for special objectives which the policyholder may use.”

Endowment life insurance policies have been rarely used in the last ten years. Prior to this, they were popular as a savings mechanism at many life insurance companies. Today, annuities and or universal life have replaced endowments as a popular concept. However currently, endowment life insurance policies seem to be making a comeback. More and more insurers have been offering these policies to satisfy various life insurance and income tax needs. The advantage of an endowment life insurance policy over a tax-deferred annuity is that upon passing to the beneficiary, income tax on the interest earned will have to be paid on the annuity but not on endowment life insurance policy.

For further information, please go to
http://www.insurance-endowment.com/

Dale M. Krause is a National Medicaid Crisis Planning Specialist with Krause Financial Services, Inc. Mr. Krause’s educational credentials include a B.S. degree from the University of Wisconsin-Stevens Point, Wisconsin; a J.D. degree from Thomas Cooley Law School, of Lansing, Michigan; and, an LL.M. in Taxation from DePaul College of Law, of Chicago, Illinois.

Mr. Krause is also a member of the Wisconsin and Michigan Bars, National Academy of Elder Law Attorneys, Inc., Coalition of Wisconsin Aging Groups, Institute of Elder Planning Studies, International Association For Financial Planning, The Financial Planning Association, Society of Financial Service Professionals, Fidelity Advisor Council, and is a licensed insurance agent and stockbroker. Mr. Krause is a regular speaker at continuing legal education forums throughout the United States. Dale M. Krause, J.D., LL.M. KRAUSE FINANCIAL SERVICES 1120 Red Wing Trail, De Pere, WI 54115 Telephone: (866) 605-7437 Fax: (866) 605-7438 E-mail: dalekrause@insurance-endowment.com Website: http://www.insurance-endowment.com

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Update Jan. 09 - 2010 All About "Endowment Life Insurance" Information By Insurance Experts

2010-01-09T03:25:00.000-08:00

By Susie Cusick

Article Source: http://EzineArticles.com/?expert=Susie_Cusick

Recommended Reading
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
For Developing Prosperity Through
Your Life Insurance Policy

Endowment Plan in Life Insurance

By Rohit Kumar Shukla

Endowment plans were very popular in the past mainly because there were hardly any options available in the market. The popularity of such policies could also have been because of the guaranteed returns assured by the insurance providers. But with time this type of policy has lost its popularity with so many players in the market and new innovative products have taken over the insurance industry by surprise.

Endowment Plan is a type of Life Insurance policy where the premium paid is partly divided to secure your life and partly for investment purpose to generate revenues. The insurance companies in this reference act like brokers to you, they invest your money in the market and share the returns with you. Such types of plans are long term plans which cover life. You are bound to pay the premium until its maturity and the premiums payable for such plans are obviously expensive than other term plans. Since it is an endowment plan, in case you survive the tenure of the policy, an amount equivalent to the sum insured plus the accumulated bonuses is payable to you. If you expire during the tenure of the policy, the sum insured plus the accumulated bonuses is payable to the nominee or beneficiary. Special feature of the plan is that even on survival the policy holder is payable by the insurance company. This means that the plan is beneficial in both ways which is not the case in any other term policies.

In these types of plans the insurance companies use part of the premium paid by the policy holders for further investment. But it is surprising that the investments made by the insurance companies lack transparency and you have no control over the investment made by the companies. You have no idea where the money is being invested and how much and so on. We are aware that the insurance companies generally invest money in virtually risk-free government debt, which is a safe bet but earns meager returns. Each year the insurance companies declare bonuses and these bonuses are nothing but the profit earned on investments made after deducting the administrative expenses of the insurance companies. Here also there is lack of transparency because you as the policy holder have no idea about how much the company has earned out of the investments made and what are the administrative and other expenses of the investing company. So basically the policy holder has to accept whatever the insurance company offers to pay. The insurer has monopoly position over the policy holders here.
Thus this is one reason for the plan to have lost its popularity. The plan has a competition now, with private players in the market Unit Linked Plan has been introduced. It allows more flexibility and transparency.

The premium for Endowment Plan is significantly higher than any other type of Term life insurance plans for the same amount of sum assured because it is insurance plus investment plan clubbed together offering a wider option to the consumers. Therefore individuals should be aware of the value that endowment plans bring to their financial and insurance portfolio, then bend down to buy one.

And at PolicyBazaar, you can compare and buy all type insurance plan at most competitive rates. You can also find special offers going on from time to time. If any help require regarding to insurance you can call to call center to available such special offers at 0124 457 67 77 and also see website: http://www.policybazaar.com/

http://www.policybazaar.com/life-insurance/life-insurance-india.aspx

Article Source: http://EzineArticles.com/?expert=Rohit_Kumar_Shukla

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Dec. 22 - 2009 Update All About "Endowment Life Insurance" Information By Insurance Experts

2009-12-22T07:54:00.000-08:00

By David Livingston

The concept of life insurance is based on specific contract or agreement between insurance company and the policyholder.. According to this contract insurer party agrees to pay fixed sum to dependants of policyholder upon his sudden death or on facing any chronic illness. This contract further specifies that policyholders are bound to pay the premium amount regularly and or in one installment to avail benefit. The concept of this had prevailed in the ancient Roman period too in which "Burial clubs" were famous which bore the funeral expenses of dead person besides supporting his dependants. It was in 1732 that first life Insurance Company was established in South Carolina in the U.S but it was specific for fire insurance only. Prominent oldest companies were Presbyterian Synods, Corporation of Relief of Poor and Distressed Widows and Children.

Life insurance is broadly divided into two categories:

• Temporary term life insurance
• Permanent life insurance

This insurance provides coverage for a certain terms of years for specified premium. It is a perfect option for your growing family as you have to pay less. You can also include new riders in your policy agreement. But you have to be careful about three very important parameters:

• Face amount
• Premium
• Length of coverage

But permanent insurance has different connotations in which contract continue for long until policy reaches to its maturity period. There are four basic categories of permanent policies:

• Whole life insurance
• Universal life insurance
• Limited pay
• Endowment

Whole life insurance provides you benefits for whole of your life at a constant premium and guaranteed cash value. You can also cover your entire family with single premium only. But the problem is that the internal rate of return may be less than other saving alternatives.

One has to maintain separate saving account to maintain universal policies where premiums are deposited and their interests are used in bearing insurance and administrative costs. Usually such policies are begun with lower deposits but more investment can be done thereafter when policy holder grows old to avail better returns.

In limited pay insurance all the premiums are paid over a specified period of time to keep the policy in line. The most common limited pay periods include 10-years, 20-years, and paid-up at age 65.

Cash value of endowment policies become equal to the face amount of the policy after certain age at the moment of endowment. Short premium paying periods and earlier endowment dates make such policies too much costlier.

By nature Term insurance is relatively cheaper, especially if you are healthy. But before choosing an affordable or cheap term quote, you must follow some simple steeps like:

• Identifying your needs
• Type of the insurance
• Contact and compare many companies at the same time.
• Understand your policy terms and conditions

Apply safer route through contacting various companies before collecting insurance quotes because it is not necessary that online option would always be suitable. You can consult local agents for support in finding out cheap term life insurance quotes. You can have online quotes through applying two steps.

• Have direct access of the website of particular company and reply certain queries before putting your request to have a quote of your desire.

• Choose some of the web addresses which have option for multiple quotes of different companies.

Applicability and eligibility is determined by insurer after calculating various factors. Understand them before having quotes. Mortality table with three most important factors is main reliable aspect which companies follow like age, gender and tobacco usage. Insurer also organizes medical exams in many cases before offering quotes. Health and lifestyle questions are asked to prospective buyers in insurance no exam category. Eligibility of policy buyer is investigated from reports given by Medical Information Bureau in the US life insurance companies. Premium amount is paid to insurer for claim payout later which insurer uses as monetary pool.

These operations sometimes seem to be complicated due to lack of information. In this adverse selection scenario the best you can do is to research and gather information as much as you can in order to derive the best suited protection for you and your family.

David Livingston has been involved in the insurance industry for a long time and is considered to be one of the leading expert in this industry. For more information on how to get affordable life insurance or getting life insurance quotes, visit his site today.

Article Source: http://EzineArticles.com/?expert=David_Livingston

Endowment Insurance Explained

By Joe Stewart

Similar to Term life insurance, Endowment insurance is also designed to cover the insured person for a specific period of time, however, that's what the similarities end. Endowment is more similar to Whole Life insurance except that an Endowment policy matures faster than Whole Life does.

An Endowment policy lasts for a specific period of time, for example, a 20 Year Endowment or an Endowment at 60 years. All that this means is that the policy will be paid off in that time frame. In a 20-year Endowment all of your premiums would be paid off in 20 years. In an endowment at 60 you only pay life insurance premiums until you're 60 years old, at which time your policy would be paid up in full. This makes Endowment much more expensive than regular Whole life insurance because you're taking an entire lifetime of premiums and compacting them into a short period of time. The shorter the period, the higher your premiums will be.

Endowment policies build cash value much faster than Whole Life policies do because you're paying your premiums out in a shorter period of time. During the period of coverage the insurance company will pay the beneficiary of the policy the face value in the event of the death of the person insured. If that person does not die during the specified period of the Endowment, then the owner of the policy will receive the face value when the policy reaches maturity. The cash value and face value will both equal the same amount when the policy matures.

The main purpose of owning an Endowment policy is so you can acquire a rapid buildup of funds over a short period of time. These funds can be used for any purpose needed. Endowment policies are not nearly as popular as they used to be.

Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website TheLifeInsuranceGuys.com or by clicking on Endowment Life Insurance

Article Source: http://EzineArticles.com/?expert=Joe_Stewart

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Dec. 02 - 2009 Update All About "Endowment Life Insurance" Information By Insurance Experts

2009-12-02T04:09:00.000-08:00

By Joe Stewart

There are actually eight different types of term life insurance available for consumers, although there are a couple differences and one is only sold as a rider. Let me touch on each one of these briefly.

#1. The first five types of term insurance are non-renewable/non-convertible term, which expires at the end of the stated period of coverage.

#2. Renewable term - this policy can be renewed at the end of the stated period without having to have a new medical exam.

#3. Convertible term - this is term life with conversion privilege. It can be changed to one of the higher premium policies such as whole life or endowment at any time.

#4. Re-Entry term - this is the cheapest of all term life policies, if the person to be insured qualifies for it.

#5. Deposit term - this is a 10 year renewable term life policy where you make a deposit at the inception.

In the next two types of term life insurance the face value of the policy remains constant or changes.

#1. Level term -the face value of this policy stays the same. The policy premium remains the same for the entire term of the policy.

#2. Decreasing term - the face value on a decreasing term policy goes down over time. This type of policy is typically used to pay off mortgages and is sometimes called mortgage life insurance.

#3. Increasing term - increasing term life is a policy where the face value goes up regularly each year. Increasing term is only sold as a rider.

Term life insurance is by far the least expensive option of all of the different types of life insurance available, such as whole life, endowment, etc.. All have their advantages and disadvantages. Term life does not build any type of cash value. It's what is known as "pure" life insurance because 100% of the premiums that you pay go toward paying for insurance and nothing else.

You can buy term life in different increments such as a 10 year term, 20 year term, etc.. If you're considering purchasing life insurance for yourself and or your family, I highly recommend that you take a good look at term as an option.

Article Source: http://EzineArticles.com/?expert=Joe_Stewart

Types of Life Insurance For the Poor

By Marcel Johnson

Insurance decoder:

Life insurance companies typically give loans against endowment policies if you have been a policyholder for a stipulated minimum number of years- usually between three and five years. Life insurance policy will also pay the claim in case of death. The knowledge that you have insurance should be a relieving factor, but that is not to say that you do no take the necessary precautions. They offer the higher of the sum assured and the fund value to the nominee upon the death of the policyholder.

Investment strategy:

Life insurance policy offers investment strategies. Some fund options are for those who do not wish to take calls on which funds to invest in. It adopts a strategy of maximizing the earnings when the capital market is soaring by locking returns and protecting the investment during volatile markets by limiting equity exposure.

For those who would like to manage their own portfolio, there are also many funds. If you stay in the plans for more than 10 years, the policy rewards you with the guaranteed loyalty units that added to your fund values at the end of 10,15 and 20 years at the rate of some percent. You can surrender your policy at any time of the year provided you have paid the premiums for three continuous years. The surrender value, however will be payable only after the completion of the third policy.

Features:

Affordable insurance is not a contract of indemnity, one can have more than one insurance policy, and in the event of death of the policy holder, all policies pay the sum insured. In practice most of the life insurance agents do collect and deposit the premium on the policies sold by them, it is not obligatory on their apart to do so. In fact, after issuance of the affordable life insurance, the responsibility of keeping the policy on force lies on the policyholder. Therefore there is no provision to penalize agents for not collecting the premium before the due date. Most of the insurers these days have the facility of payment of premium online.

Helping hand:

Poor people can either go for individual policies or joint policy. If you discontinue a term affordable life insurance policy, you do not lose financially. However obtain a fresh policy before discontinuing the existing policy, so that there is no break in the risk cover. Looking at the overall you can find it moderate in terms of costs and flexibility.

Visit our recommended website Insurethepoor.com to know more about life insurance for the poor.

Article Source: http://EzineArticles.com/?expert=Marcel_Johnson

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Nov. 15, 2009 Update All About "Endowment Life Insurance" Information By Insurance Experts

2009-11-15T08:10:00.000-08:00

By David Livingston

Life insurance is broadly divided into two categories:

• Temporary term life insurance
• Permanent life insurance

• Face amount
• Premium
• Length of coverage

But permanent insurance has different connotations in which contract continue for long until policy reaches to its maturity period. There are four basic categories of permanent policies:

• Whole life insurance
• Universal life insurance
• Limited pay
• Endowment

In limited pay insurance all the premiums are paid over a specified period of time to keep the policy in line. The most common limited pay periods include 10-years, 20-years, and paid-up at age 65.

By nature Term insurance is relatively cheaper, especially if you are healthy. But before choosing an affordable or cheap term quote, you must follow some simple steeps like:

• Identifying your needs
• Type of the insurance
• Contact and compare many companies at the same time.
• Understand your policy terms and conditions

• Have direct access of the website of particular company and reply certain queries before putting your request to have a quote of your desire.

• Choose some of the web addresses which have option for multiple quotes of different companies.

Article Source: http://EzineArticles.com/?expert=David_Livingston

Life Insurance - The Three Most Common Types Of Policies Explained

By Joe Stewart

The life insurance industry has been misunderstood when it comes
down to the sale of life insurance policies. Folks must
appreciate the fact that dying is just a part of life.

There are many things that must be considered before purchasing
any life insurance policy. There are 3 main types of life insurance
policies to look at Term, Endowment and Whole Life. Let's take a look at these three.

Whole life insurance is designed to cover you for your whole
life. When you pay your monthly premiums a portion goes to pay
for your life insurance while the rest goes into a savings
account. This savings account builds what is known as "cash value"
that you can borrow against, if needed, after it builds, but it
must be repaid.

These Whole Life Insurance policies "mature" when
the insured individual turns 100 years old. At this point, the
insurance company will cash out the insured person for "face
value" and cancel the policy. Face value is the amount that the
policy would have paid in the event of the death of the insured
person.

Endowment insurance policies are designed to be paid for a
specified amount of time until the policy "matures". Some reasons
for Endowment Insurance could be college tuition, retirement,
ect. Endowment policies are normally more expensive as they're
designed to be paid in full after a certain period of time rather
than being paid over the period of the insured person's life.

Term life insurance is the least expensive type of policy that
you can buy. These policies can be purchased for a specific time
period or "term" just as the Endowment policies, however there is
no cash value accrued with term insurance policies.

Term policies are perfect for those that need additional security
over a specific time frame. An example would be the breadwinner
of the family needing additional insurance coverage during his or
her working years when they would have more obligations to meet.

Before buying any life insurance you need to sit down, with your
significant other, if you have one, and go through every bill that you have.
Separate these bills by figuring out what your regular monthly expenses are
for your household and how much you have going out in payments that will
eventually be satisfied.

Examples of payments that will eventually be satisfied are car, boat
furniture, home, ect. These should be figured into the amount of coverage
needed in order to pay these off in the event of the death of the breadwinner.

The other pile will include what your living expenses will be like without
those payments. This pile should include homeowner's insurance, life insurance
for the surviving family members, food, utilities, clothing, etc.

You'll also need to take into account the loss of income from the breadwinner.
This can be tricky, especially if you have children. You'll need to take into
account their ages, how many years they have remaining in the home, medical
insurance, dental insurance, school expenses, ect.

Finally, you'll need to allow for enough money to survive in the event
that you're unable to work or simply need to take a period of "healing" time.
The passing of a loved one is never an easy event, but it's made much worse when
you're not allowed the time to gather yourself before being thrown back into the
routine of life.

The things mentioned above are designed to give you some ideas as to what you
need to be taking a look at. Each family and individual has different needs
and expenses though and you'll need to take your time when doing your financial
inventory.

For more information about the different types of life insurance
then you should contact a licensed agent and set up an
appointment at your earliest convenience.

Joe Stewart is a Webmaster and former Life And Health Insurance Agent. He's made understanding life insurance simple for consumers. You can read detailed explanations about life insurance at his website TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Quote Online

Article Source: http://EzineArticles.com/?expert=Joe_Stewart

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Oct. 27, 2009 Update All About "Endowment Life Insurance" Information By Insurance Experts

2009-10-26T22:37:00.000-07:00

By Andrew Stevenson Ph.D.

When you're searching for the best life insurance policy for you, one of the most important considerations is the type of insurance you're purchasing. While the differences between these policies aren't always explained very well, they offer different coverage, different premiums, and different exclusions and so should influence what you purchase.

Life insurance falls into 4 main categories though it can often look like there are more because different companies will title them differently. Getting familiar with each type will help you know what sort of policy you're looking and which one will be the best life insurance policy for you.

Term Life

Term insurance will pay your beneficiaries a certain, specified amount of money in case of your death in exchange for a regular premium. These policies generally have a specified length of coverage, or term, after which they are no longer valid. Most of these policies pay out in case of death only and not if you contract a serious illness or are in an accident that seriously prevents you from returning to active work.

Term life can be the best insurance policy for you if you are looking for the lowest personal investment, or premium. On the other hand, if you do not die during the specified term of coverage, you receive nothing in spite of your investment.

Whole Life

Whole life does not have a fixed term of coverage and so is considered permanent insurance. In addition, this type of insurance policy has a cash value on top of the specified death benefit, and you can access that cash value at any time. However, anytime you use money from the cash value of your policy, it is considered a loan and your beneficiaries may not receive the entire death benefit if you die before paying it back.

While whole insurance policies usually have significantly higher premiums than term life policies, the greater flexibility and permanence of the insurance can outweigh this downside. If you can spend a little more on premiums, a whole life policy may be the best life insurance for you.

Universal Life

Universal life offers some similar benefits but more flexibility than whole life insurance. Most universal policies offer flexible premiums, and distinguish between what you're paying for the death benefit and cash value of the policy (which many whole life polices do not offer).

If you want the benefits of whole life but know you cannot afford the premiums at this point, a universal policy can allow you to have a permanent insurance policy with some cash value and lower premiums.

Endowment Life Insurance

Endowment insurance policies build up a cash value until the total amount of the policy equals the death benefit. At this time, the policy reaches its endowment age and pays out whether you have died or not after a specific amount of time or when you reach a certain age.

If you cannot afford high premiums, this is not the best life insurance policy for you. However, if you want some guaranteed income provided you live past a certain age check out this type of life insurance.

No matter which type of life insurance you choose, you should know what you're getting. That way, you can insure that the choice you make is for the best life insurance policy you can find.

Andrew Stevenson is an experienced Insurance Adviser. For easy to understand Insurance Advice please Checkout His site: http://coverlifeinsurance.com

You can find plenty more easy hints and tips on how to find the best insurance policy to suit you here Life Insurance Policy

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Life Insurance Policies

By Jason Gluckman

There are various aspects to consider before getting a life insurance policy. One of them is a sustained doubt about the significance and need for life insurance. A life insurance policy is relevant for all individuals who are concerned about the financial future of their family in case of death.

Apart from the purely protectional needs, life insurance policies, like whole and variable life insurance, offer the opportunity for tax-free investment and reaping dividends, and they have a built-in cash value. Purchased with due discretion, it can be utilized as liquid cash to cater to the various needs of policyholders.

There are various types of life insurance policies customized to suit the different needs of various individuals. Depending on the number of dependants and kind of insurance needs, a suitable life insurance policy can be chosen after consultation with financial experts and advisors.

Whole life insurance and term life insurance are the two basic forms of insurance policies. With time, there have been different variations to suit the changing demands of people. A term life insurance policy is also called temporary or short-term life insurance. These are purely protection-oriented and provide death benefits only if the insured dies within the period specified in the policy. In case the insured lives past the specified duration, no money is given.

People with short-term insurance needs, like a young individual with dependents, a house loan or a car loan, favor this kind of insurance policy because they are cheap and affordable in comparison to whole life policies. In the initial years the premiums are very low; however, as the mortality risk of the insured increases with age the premium cost increases and at time becomes more than that of whole life insurance.

There are now two kinds of term life insurance, namely level term (decreasing premium) and annual renewable term (increasing premium) policies. The premiums of level term are initially higher than renewable term, but become lower in the later years. Whole life insurance has an ingrained cash value and guaranteed life protection features. The initial steep premiums of whole life insurance may exceed the actual cost of the insurance. This surplus, which is the cash value, is added to a separate account and can be used as a tax-free investment to reap dividends, and is also used to enable the insured to give a level premium latter on. There is a guarantee of getting the death benefit on the maturity of the policy or death of the insured, apart from cash value surrendered in case of cancellation.

Return of premium is popular because it combines the features of whole and term policies. It costs double the amount of a term policy. The policy is made for a set time, but full value is given on death within that period or in case the policy matures. Universal, variable and universal variables are different variations of whole life insurance policies. A universal life insurance policy offers the flexibility to the insured to choose the kind of premium payment, the death benefits and the coverage amount.

Variable life insurance policies enable the insurance buyer to invest the cash value in direct investment for a greater potential return. A universal variable insurance policy integrates the flexibility factor of a universal policy and the investment option of a variable policy. Single purchase life insurance enables a buyer to buy the policy and own it through a one-time premium payment. A survivorship or second-to-die insurance policy is a joint form of life insurance policy which is devised to serve the specific purpose of certain individuals. Apart from these, there are also endowment life insurance policies. Endowment is with profit kind or unit-liked kind. On maturity of the policy or on the death of the insured the value of the policy or the amount insured, whichever is more, is given back.

Life insurance policies differ from company to company, and hence the various parameters have to be analyzed meticulously with the help of experts and financial advisors to get the best deal.

Life Insurance Policy provides detailed information on Life Insurance Policies, Life Insurance Policy Rates, Term Life Insurance Policies, Whole Life Insurance Policies and more. Life Insurance Policy is affiliated with Term Life Insurance.

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Oct. 08, 2009 All About Endowment Life Insurance Information By Insurance Experts

2009-10-08T05:29:00.000-07:00

Endowment life insurance has various products, find out more by consulting the insurance agents or log on to: endowment life insurance site, or visit us at:
http://www.indianapolislifeinsurance.net

Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong

Bust Through The Insurance Jargon - Endowment Life Insurance
By Susie Cusick

Article Source: http://EzineArticles.com/?expert=Susie_Cusick

Understanding Life Insurance Basics
By Julita Viola

To some they do not purchase life insurance until something happens to them which to me are a tragedy in itself. And to some people it is a must. But before you start looking to purchase a policy, you have to understand the types and factors associated with it. You have to understand what is temporary or term and permanent. And under the permanent type of insurance there are other sub types of policies which may offer a better deal for you.

Term life Insurance: It provides a coverage for a specific duration of time or specific number of years for a specified premium. This type of policy coverage does not accumulate cash value. It is commonly referred and considered pure insurance. It is pure type of insuring because the premium buys protection in the event of death and nothing more. Though it will not accumulate any cash value, it is 8 to 10 times cheaper than a permanent life insurance.

Permanent life Insurance: It is a type of coverage or policy that remains in force until the policy matures. This will be in force provided that he owner continue to pay their premium when due. If the owner fails to pay the premium when it is due, the policy expires or policies lapse. Permanent type cannot be canceled by the insurer for any reason except for fraud in the application. This type of insuring yourself builds cash value that reduces the level of risk to the insurer over time.
There are three basic types of permanent insurance namely; universal, whole and what are called endowment.

A universal life insurance is another type of permanent type of insuring yourself that is based on cash value. Universal is intended to provide insurance coverage with greater flexibility in terms of the premium payments and the potential for a higher internal rate of return. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some of these changes require underwriting approval. The main benefits of a universal type are its flexibility, security and protection for love ones, tax-free death benefit and tax deferred account value growth.

A whole life insurance is a type of insurance whereby the policy remains in force for the policyholders' whole life. There are seven different types of whole life namely; non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive. Whole life insurance is expensive. This type of insurance is like a force savings. You are not only paying for the insurance but for the investment portion of it.

Decades ago, endowment insurance is popular as a saving mechanism and considered to be a good buy. But in today's world it is being replaced by universal life insurance. It is a type of life insurance where its face value is payable only if the insured survives to the end of the endowment period. Endowment life insurance is rarely use in the last 15 or so years.

Accidental Death Insurance: This is a type of life insurance that is covers exactly what it says. Simply put, it is designed to cover the insured when they die due to an accident.
Understanding and knowing what are the different types of life insurance can empower you more in your search for the right life insurance that you may take out.

Who Really Needs Life Insurance? Or Do You need a Life Insurance Companies address and and tel. #? If you need more info and tips go to: http://www.jgvfinance.com

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August 29, 2009 All About Endowment Life Insurance Information By Insurance Expe

2009-08-29T06:14:00.000-07:00

Insurance is a cover for some unforeseen contingency bought at a cost called premium. There are broadly two types of insurance - one, life insurance for individuals both as cover as well as savings, the other is general insurance for loss of articles, things etc. Life insurance is again of two types - whole life insurance and term insurance called endowment policy.

Life insurance is one where premiums are payable during the life period of the insurer. So long as the insurer lives he should continue to pay premium periodically. Only the insurer's legal heirs will enjoy the benefits of the policy maturity proceeds. Usually premium is very low if the insurer takes a policy at a young age. Premium increases with increase in age at entry level. The policy proceeds are useful for the funeral expenses and last rite expenses and as legacy to the legal heirs.

Term insurance is one where the insurer can opt to pay premium for a fixed term and on completion of the term of premium payment, the insurer will get the maturity proceeds either in one lump sum or as monthly annuities. This is a sort of savings coupled with risk cover. If the policy holder expires before the term stipulated, the insurer's legal heirs will receive the full face value of the policy together with all accrued bonuses eligible and they need not pay further instalment of premium.

The term insurance has many benefits as investment. If one takes a term insurance for the purpose of augmenting income after retirement, the insurer can plan well and ensure same style of living even after retirement. Premium varies depending on the age at entry (since life cover risk is available with a premium bond), the sum assured desired plus the term of years chosen, for example a 45 year old person with a policy of US$50000 for 15 year term joins the scheme, the premium payable will be a little higher compared to a policy for a 30 year old person for the same 15 year period and for US$50000. Hence it is seen to be advantageous to take a policy at a young age.

Term life policies, or endowment policies (as they are popularly known in some places), are mainly intended for savings and investment with risk cover. Most of the term policies are available as unit linked investment plans where the insurance companies invest the premiums collected in market securities like equity/debt markets depending on the yield/risk preference of the insured person. It is useful for people in all walks of life - parents can plan their children's education, young executives have an investment opportunity, middle aged executives can augment their income after retirement to maintain their lifestyle and business executives can use it as a security cover. So, term insurance is a multi-purpose savings product with risk cover catering to all needs.

If you are interested to know more then visit term life insurance and if you want to know anything else about life insurance visit life insurance basics

Article Source: http://EzineArticles.com/?expert=Dilip_V_Mohan

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Update August 10 2009 All About Endowment Life Insurance Information By Insurance Experts

2009-08-10T07:56:00.000-07:00

Different Mortgage Types Match Your Finance Needs
By Andrew Stratton

If you are thinking about making a real estate purchase, you may find the financing options quite confusing. Before you can proceed, you have to know your terms, and understand what your options are.

There are two variables to consider - mortgage type, and interest rates. These are the most important considerations when deciding on real estate, so it is essential that you have a basic understanding of what they are. Your two main options are repayment and interest-only types, and under those are more specific kinds.

Repayment Mortgages

This type of financing operates like a simple loan. Every month, you make a payment and the money goes to both the capital (the actual home itself) and the interest. The loan lasts a certain period of time, and if you make all of your payments according to schedule, you will have both the interest and capital paid off at the end of that term.

Interest-Only Mortgages

With this type of payment option, you are making your payments to the lender for the interest only. These loans have other options for paying off the capital in a lump sum. These have their benefits, but they are only good for those who can definitely make those payments according to schedule. If you do not keep up your payments, you risk losing the loan.

You will be saving the money for the capital in a savings plan of some sort, like a pension plan, ISA or endowment. At a certain time, that saved money will be used to pay for the mortgage, and the interest will already have been paid off.

- Endowment Mortgages.

With this type of financing, you are paying money into a life insurance plan. Those funds will eventually be used for the house. At the end of the term, this money will go to the house. The advantage is that you are not only saving for your mortgage, but also getting life insurance. If you die during the payment period, the loan will still be paid off so your family doesn't have to worry. You also might end up with extra cash left over after it's paid off.

- ISA Mortgages. With an ISA, your monthly payments are being split two ways. One part is used to pay the interest on the principle (or original amount you borrowed), and the other goes into an ISA plan, which is invested. Part of the ISA plan will be simple savings, and the rest will go into stocks and other investments. This is an excellent way to pay off your loan like a repayment mortgage, but save lots of money on taxes.

- Pension Mortgages. You pay money into a pension that will be used to pay for the house when you retire. This option is usually only available to those who are self-employed. You are basically saving for both your home and retirement, so you have to make sure that there will be enough when you retire for the house and to take care of you throughout the rest of your life. With this type, you pay almost no tax on your house, and end up saving all that extra money.

Once you've decided which payment plan is best for you, you will have to choose an interest rate. Whether you need a fixed interest rate, variable rate or capped rate will depend on your lender and your own personal needs. Having advanced knowledge about your options will let you select the plan best suited to you and your future.

Knowing which of the different mortgage types suits you helps with financing your home. The terms can often be complicated, so awareness of your financing and payment options can only make things easier. Get the information you need from a New Orleans Realtor. http://www.thelatourteam.com

Article Source: http://EzineArticles.com/?expert=Andrew_Stratton

Young Black Men, An Endangered Species - Who Will Save Them?
By Patrick Pearce

I do not care how well some of us black men are doing as individuals, let there be no misunderstanding, we will never escape identity of our people. It is incumbent on all of us to do whatever it takes to uplift and guide our young black men in the right direction, since these are the very people who will be making decisions on our behalf in a very short while. Time is of the essence and we must act now. The days of telling black men to wait on some benevolent Black leader, Executive or Pastor to elevate their status as decent and progressive human beings are over. Training starts at home. We cannot expect teachers alone to miraculously raise and teach our children values, good manners and common decency. So I am sounding the alarm hoping to prevent these young black men from becoming endangered species or possible face extinction.

Young black men in almost every sector of the American society are failing at an alarming rate. From low enrollment in colleges and universities to the highest rate of incarceration in the world, our young black men lives are in chaos. The negative images and stereotypes of the black man are frightening. We see many of our young black men embracing and glorifying thugs, gang banging, and the most self destructive of all, referring to their women as whores and bitches. Many of them proudly refer to each other as the "N" word and are proud of it. It appears to be so noble for many of them to call each other dogs and the "N" word. When we look at television today we see thugs, rude boys, dope sellers, etc., being glorified in many of the black communities. Our black women are on music videos with strings in their backsides, while our black men are wearing corn rows, tattoos, heavy jewelry and oversized trousers hanging down their rear ends. Self respect and common decency is no longer an acceptable norm in many of our communities. Many of our black women have zero respect and tolerance towards their black men. Self hate is rampant among them. There is so much mistrust and disunity among themselves. Most of all, there is no genuine love among each other. There must be radical change now, or regrettably, we may see a people end up with the same fate as dinosaurs. Who will save our young black men? Who should they turn to for help?

Our dear brother Bill Cosby is right. If we can find hundreds of dollars to buy sneakers over reading materials for our children, we are a people in major trouble. What I wouldn't give to have series such as the Cosby Show on television again. The Cosby Show was one of the most positive images shown on television that Black America can be proud of. Today we have talk shows, freak shows, soap operas and sitcoms showing low class women and men making out and doing whatever it takes to be with "crack heads", pimps and thugs for money and fame. When was the last time you see a television series that show young black scholars defying all odds and graduating as physicians, lawyers, engineers, astronauts, professors, etc? Why is it so hard for Producers and Directors to put together a positive sitcom or television series that depict positive images of black men and women in our society today? We are feeding an appetite of filth in low down people. Garbage, sex and filth sell in the black communities and that is shameful. There is hardly any positive image of black folks on television anymore. When we will see positive images of black men on television again?

With Senator Barack Obama seeking the presidency of the United States, there is some hope for young black men. I hope that young black men receive this Great American (Barack Obama) with open arms. He is such a breath of fresh air. This is one of the proudest moments of my life as a black man living in America. I can now identify with someone in black America that dresses like me, talks like me, etc., in Senator Barack Obama and other noble Black Americans. We need positive images and role models such as Senator Barack Obama, Bill Cosby, Colin Powell, Dr. Condi Rice, Dr. Ben Carson, Justice Clarence Thomas, Dr. Cornel West, Bryant Gumble, Attorney Ogletree, James Blake, Maya Angelo, Magic Johnson, Oprah Winfrey, etc. However, not until we start to build colleges, universities and training centers to educate and train our young men and women, we all have failed. "A leader without a vision, the people perish." It is high time we pool our resources and great wealth in uplifting the standard of our people. Let us not look down on them unless we are willing to pull them up. It is important that when we get to the top, we leave the ladder behind us even if we are not willing to show them how to climb each rung. I cannot help but to applaud the noble and divine efforts of my dear brother Magic Johnson for investing in communities most of us were afraid of. Special thanks to my dear sister Oprah Winfrey for building a school in Africa. We must magnify these positives attributes and contributions to humanity by these great visionaries and noble human beings. The black community needs more of these noble, divine and great Black Americans to help uplift the standard of our brothers and sisters.

While there are those who made or continue to make a genuine attempt to guide and restore young black men, there are also those hypocrites and parasites that benefit tremendously from their ignorance and disunity. There are those who give charitable contributions for tax benefits and to seek fame, praise and recognition. One of the first places you think would be an ideal place to rehabilitate and restore young troubled black men are the Church. But it seems as if our Churches are failing to reach out to these troubled black men. In many of these Churches the only people we see most times that are doing well are the pastors, their immediate family, sweethearts and lads. There seem to be more emphasis on their gator shoes, power suits, diamond rings, private jets and luxury cars than to uplift young black men. They claim to be prophets of the people, but many are more eager to profit from the people. Then you turn to Corporate America, only to find out that there is an exclusionary policy against some of these qualified black men. Yet on the other hand, doors are open for black women. It is obvious that black women are not a threat in corporate America. You turn to your political and civil right leaders and there is no help either, because it is all about their personal self interest, aggrandizement and enrichment. Last but not least, you turn to your own black man and sometimes you are treated with more scorn than from someone of another race. The black man most times will go out of his way to create a job or an opportunity for a pretty woman so as to impress her for sexual favors later over giving a fellow black man a break. I have seen this on many, many occasions. Many of our black men who are in positions to help young black men get jobs have the inability to look beyond genitalia and a fancy car. Where should the black man turn for help?

I had many friends and acquaintances that were lawyers, politicians and business executives prior to going to law school. I thought that upon graduation from law school I would have landed a fairly decent job because of such association. I was wrong. I gave this illustration and example to demonstrate that you should not look or count on your fellow black man to take you to that next level. Many of our black men that are leaders, CEO and executives lack vision. Many of them that got to the top pulled up the ladder behind them. Many of them ran away from their communities. Some of them still remain disconnected with the community. I used to wonder why so many of our young black men resent going to colleges and universities. I now understand why. There are no jobs out there for many of them even though they have degrees and are qualified for the positions they applied for. Just imagine incurring student loans in the hundreds of thousand of dollars for your education only to find out that you cannot get a job because of your pigmentation, and lack of networking and support in your black communities. Nonetheless, I encourage you black men to go to college. As William Knibb, the great Emancipator said: "Ignorance enslaves, knowledge liberates. It is going to be a hard road for many of you even with your good and excellent qualifications. But do not give up. Stay the course. Help is on the way.

Let me conclude by saying to black men, be steadfast and be of good courage. Stay away from trouble and bad company. You are guilty by association, so chose your company wisely. Respect and abide by the law. Have an open mind. Pray and seek God's guidance daily. Stay humble and preserve your health. Start your own business and maintain a decent credit score. Be an entrepreneur...take the risk, because it is better than sitting home. As we say in my culture: "The devil finds work for idle hands." Do not wait or depend on anyone to survive. Let no one define who you are and limit you. You are created with an infinite potential. Stay away from drugs, prostitution and no good women. Be a part of your children's development. Get married and avoid dysfunctional family settings. Do not go about the place impregnating women all over. Chose one and settle down. Reprimand and discipline your children when necessary. Do not spare the rod and spoil the child. You basically have two choices in raising your children: You either raise your children with discipline, love and self respect, or else correction and law enforcement officers will do it for you later. Pick your choice! You must break the chain of poverty in your family by investing and saving money wisely.

Start by putting away money for your children's college fund, get endowment policies, life insurance, real property investment, etc, over buying silly expensive bracelets, ear rings and necklaces. Forget about name brand clothing, expensive sneakers, fancy cars, jewelry, etc. Those are personal properties and they are worth nothing. Do not look in one particular place for your help. I want you to know that angels come in all forms. Do not limit your blessings by looking to a particular group, race or culture. Like many of you, I was looking to my fellow black man for help, but guess what? Hadn't it been for my White brothers and sisters, I would perish. My White brothers and sisters have embraced me with open arms over my own. I am not advocating that you should look to White people alone for your help. I am sure that there are some black men who got their breaks from another black person. You would be surprised to know how many of your White, Asian, Indian and Hispanic brothers and sisters are out there ready to embrace you over some of your own people. The late Honorable Robert Nesta Marley, aka Bob Marley musically said: "They keep us hungry and when you are going to get some food, your brother got to be your enemy, ambush in the night."

Patrick Pearce is Founder, President and CEO for Southeastern Development & Consulting Group, Inc., a Florida Corporation.

Patrick Pearce earned his BA degree from the City University of New York and his law degree (JD) from Hofstra University School of Law in Hempstead, New York.

Patrick Pearce works as a Consulting and In House Attorney with various Law Firms and Government Offices.

Website: http://www.sdcg1.com

Blogs: http://www.legalconsulting.wordpress.com

Article Source: http://EzineArticles.com/?expert=Patrick_Pearce

All About Endowment Life Insurance Information By Insurance Experts

2009-08-02T07:43:00.000-07:00

Endowments and Endowment Shortfalls - What You Need To Know
By David Miles

Endowments and endowment mortgages have received a lot of bad press in recent years, amid concerns over falling policy values and accusations of endowment miss-selling.

What is an endowment mortgage?

There are two basic types of mortgage. The first is a repayment mortgage, where you make one monthly payment to the lender which is part interest and part repayment of the original capital.

An online mortgage calculator can give you an idea of the difference in payments to your lender between an interest-only mortgage and a repayment mortgage.

How do endowments work?

Endowments can be unit linked, which means that you buy units in a fund, or they can be "with profits".

How does money grow in a with profits endowment?

The amount added in this way may only be a small amount. However, once added, these bonuses cannot be taken away - hence the name reversionary bonus - and will belong to you when the policy matures.

What are the advantages of with profits endowments?

The idea of a with profits endowment is to smooth out fluctuations in the stockmarket.

The point of this is to try to ensure that, no matter what happens to the returns of the fund, you are guaranteed a certain minimum amount when then endowment policy matures.

Why don't you get the entire year's gains as a bonus?

On the one hand, the insurance companies and their fund managers want you to have as much security as possible - hence the reversionary bonuses which cannot be taken away at a later date.

On the other hand, they are also trying to maximise long-term growth by investing your money in stocks and shares, property, gilts, and cash. All of these involve a degree of risk.

What is the problem with endowments?

How does this affect existing policyholders?

Insurance companies are therefore assessing the state of people's policies and contacting them to advise what action they should take now to avoid a potential shortfall at the end of their mortgage.

How will I be affected?

But, the shorter the length of time your endowment has been running, the greater the potential for a shortfall at maturity.

What can I do now?

There are a number of options:

3. You can set up an additional investment, such as an individual savings account (ISA). An ISA may be cheaper and can offer a wide range of investment choices to suit your attitude to risk.

5. You can use any other spare lump sum to pay off part of your mortgage. You will need to check first to see if this would make you liable for any early redemption penalties from your lender.

Which is the best option?

Should I just cash in my endowment?

Also, you need to bear in mind that a large proportion of the final value of a with profits endowment depends on its terminal bonus. The size of this bonus will not be known until the policy matures.

Please note that this article is for general guidance only and does not constitute financial advice. You should seek professional advice with respect to your own specific circumstances.

------

David Miles is the editor of a number of personal finance websites including UK Mortgages & Remortgages and The Cash Clinic - a UK Personal Finance Portal.

Article Source: http://EzineArticles.com/?expert=David_Miles

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How to Choose the Right Life Insurance Policy?
By Vincent Funfatt Yeong

A life insurance policy provides you and your family security; it gives financial protection to a family if the bread-winner passed away. Death is inevitable for everyone; therefore family planning is important for those who are married, they should buy a life insurance to replace the lost income in the event of the bread-winner's death.

Many people have considered getting a policy, but the insurance products are so many, it is time consuming to find out all of them thoroughly. Sometimes you might find a suitable coverage but the premium is too high, or when it is affordable but the benefits you find them not satisfactorily. Life insurance policies are basically the same, whether you want a policy with or without cash value, or with dividend and investment.

Term life insurance

This form of policy is the most basic type of insurance; it has the cheapest premiums, because it is designed solely for life protection only, it provides the buyer with no cash value. Term life insurance is not a saving plan; it has various types of policy, such as increasing and decreasing term, or ten, twenty and thirty level term. Only if you want a policy solely for life protection then you should know more on this product, otherwise you should look for other policies.

Whole life insurance

Many people find this policy unaffordable, but it has been selling for many years and is one of the most popular products in the market. The reason is that it has cash value, and it is like a saving plan. This policy provides the buyer with death benefit, and the cash value can be withdrawn when time in need.

Universal life insurance

This is another option that offers the buyer the same benefits as whole life insurance, but the premium is put into investment and dividend is payable to the buyer, this is one of the benefits because it gives the policy holder a higher return on their investment.

Endowment life insurance

This policy has a very much higher premium than others because it has a short term of maturity, and is designed as saving plan. It is much recommended to young people who want to have big saving and at the mean time have coverage. Upon the maturity lump sum of money is payable to the policy holder, and he can have some cash to make his own investment.

Basically life insurance is to provide protection to your loved ones, you can choose a policy solely for protection, or you want protection and saving as well. No matter which policy you prefer, choose the right life insurance policy, and please log on different types of life insurance to find out more, or visit us at http://www.indianapolislifeinsurance.net

Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong

What Type of Life Insurance Should I Buy?
By Vincent Funfatt Yeong

When buying life insurance, find the most suitable and at a price you can afford. There are many types of insurance in the market, find a most suitable life insurance policy for yourself and for your family, life is unpredictable, but at least we are insured. It is convenient to find out what are the life insurance policies and what they provide us. Just consult the experienced life insurance agent and the reliable insurance company.

There are many types of policies in the market, choose the most suitable one and at an affordable premium.

Term life insurance policy - this is the cheapest policy because it has no cash value, the buyer pays premiums for a specified term or period of time, may be 10 to 20 years or more, but upon maturity the buyer will not receive any money. Within this term the buyer only covered or insured.

Universal life insurance policy - this is slightly more expensive compared to term life, but universal has cash accumulation. You can withdraw or you can adjust the premium and face value, you may increase your premium, but it will not expire.

Whole life insurance policy - this is the most recommended by many of the agents. The premium of course higher than others, but it has cash value, and the cash value may increase, or you can borrow the cash value in case you need money. This policy not only covers you, it can build your cash value as well.

Joint life insurance policy - this is designed to insure two or more persons with a single premium, or may be set up as first or second to die, it may be of either term or whole life, it is normally bought to insure couple or for family.

Endowment life insurance policy - some called this a saving policy, the premium of this is high, but on return it provides the buyer with high cash value. This is suitable for those who like to have forced saving, and withdraw a sum of cash in future.

Whichever policy you wish to purchase, it is better than without one, but find out more on life insurance policies before you buy. You can read and find out more on what is term life insurance, or get more information on whole life insurance explanation, please visit http://www.Indianapolislifeinsurance.net/index.html

Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong

Consider Comparing Life Insurance Policies
By Adam Singleton

Life insurance is arguably one of the most important insurance policies as it offers protection for family and loved ones. As with all types of insurance, there are lots of different policies on the market so ensure complete peace of mind for yourself and security for your family by carefully comparing the various options available.

Logical factors to think about before starting the search relate to the level of cover you feel you need. You may want to cover your mortgage repayments or replace the primary earner's salary. If you have children, covering education or childcare expenses may be of utmost importance.

Starting with the least expensive, the most basic type of life insurance is known as term insurance. This type of protection is usually chosen in order to cover mortgage or loan payments. The key point to remember is that at the end of the term nothing is payable to you if you haven't claimed and there is no surrender value. This is a good option if all you want to do is cover the outstanding balance of a loan, but as there are several different types of term insurance a bit of research is required.

Whole life insurance is a more comprehensive option which, unlike term insurance, is not limited to a specific time period. You can be certain that the insurance company will pay out the sum insured and because of this the premiums are usually more expensive. Whole life insurance is available at different levels, namely 'non-profit', 'with profit' and 'low cost' so do your sums if looking at the possibility of taking out a whole life insurance policy.

If profit is a factor you see as a benefit of your life insurance policy then it's a wise idea to review endowment life insurance which is essentially a savings scheme married with a life insurance policy.

There are also different premiums to consider - guaranteed and reviewable. With the guaranteed option your insurer promises never to increase your premium whereas reviewable premiums mean your policy can be reviewed and premiums are likely to increase.

This is merely a scratch on the surface of life insurance options so it really is worth investigating further and comparing offers. Premiums can vary widely between companies for the same policy and spending an hour or two shopping around could save you thousands of pounds. Shaving just £10 a month off a twenty-five year policy would leave you with an extra £3,000 in your pocket. Not bad for a few hours research especially when considering the possibility of online research which lends itself to easy and accurate comparison; all crucial factors to making the best choice.

Most people need to compare life insurance for the benefit of their family and loved ones but do remember that it is also possible to list business partners as beneficiaries of your life insurance policy. Whatever your needs there's a policy out there to suit you, it's simply a matter of finding it.

Adam Singleton writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.

Article Source: http://EzineArticles.com/?expert=Adam_Singleton

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All About Endowment Life Insurance Information By Insurance Experts

2009-08-02T07:39:00.000-07:00

Whole Life Insurance Rates
By Max Bellamy

Traditionally, there are two kinds of insurance policies - whole life plans and endowment plans. Whole life insurance plans have premiums that are paid for the lifetime of the insured and the proceeds of the plan are paid to the beneficiaries upon the insured death. In endowment life insurance plans, the premiums are paid for a certain period of time and after that the profits are paid back and an additional period of life insured without payments.

Whole life insurance policies have their merits and demerits. The biggest merit is they provide full death benefits to the survivors of the policyholder. The events of mortality and other expenses are not changed against the cash value of the policy. This policy provides access to cash at any time. Last but not the least, there are fixed annual premiums that make it possible for the policyholder to have resources ready to pay the premiums.

But the last advantage can also be a disadvantage. Having a fixed annual premium leads to rigidity in the policy. The terms cannot be changed and market indices will not influence the policy rates. The premiums will remain constant till the death of the policyholder.

Interest rates on whole life insurance policies run higher compared to other life insurance policies, especially term life. In fact, in some cases, the internal rate of the policy may be so high it may seem less economically advisable compared to other savings plans.

Whole life insurance policy rates are not very transparent. In some cases, the situation is so convoluted that it is difficult to understand how much of the premium goes towards the insurance and how much is an investment.

These may be the reasons why whole life insurance policies are not that popular. With such high rates, and premiums almost threefold that of term insurance policies, it is no wonder that more and more people are opting for term life insurance policies.

Life Insurance Rates provides detailed information on Life Insurance Rates, Term Life Insurance Rates, Insurance Life Policies, Whole Life Insurance Rates and more. Life Insurance Rates is affiliated with Whole Life Insurance Quotes.

Article Source: http://EzineArticles.com/?expert=Max_Bellamy

Life Insurance - The Three Most Common Types Of Policies Explained
By Joe Stewart

The life insurance industry has been misunderstood when it comes
down to the sale of life insurance policies. Folks must
appreciate the fact that dying is just a part of life.

For more information about the different types of life insurance
then you should contact a licensed agent and set up an
appointment at your earliest convenience.

Article Source: http://EzineArticles.com/?expert=Joe_Stewart

Should You Refinance Your Endowment Policy?
By Robert H. Jones

Are you tired of paying for an endowment policy which you now fear may never pay off your mortgage? Would you be better off walking away? In this article I want to look at the options that people with the once popular endowment policies now have.

Back in the 1980's endowment policies were seen as low-cost and low-risk ways of saving for your retirement. Unfortunately the reality has been a little different from that which was promised by the keen insurance agents who promoted the policies to British home-owners at the time.

An endowment policy is a combination of life insurance and stock investment all backed by a mortgage against your home. Typically the policy owner has an interest-only mortgage against the property and the capital is invested into managed funds or the stock market. The gains of the market were supposed to pay off the home mortgage at the end of the policy's term - usually 25 years.

Unfortunately the low interest rates and turbulent stock markets of the last couple of decades have exposed endowments as being high cost inflexible investments which few people would invest in today.

So if you are the unhappy owner of an endowment policy what are your options? Well you may have more than you realize. Most policy owners would only think of selling their policy back to the company that they bought it from. But when they find out how low the surrender value is they are usually disappointed and feel they have no option but to stay invested in the endowment.

Selling to the original company is not your only option though - there is a healthy second hand market of buyers who are prepared to buy your endowment policy. The easiest way to find these potential investors is to go through an on line endowment mortgage brokerage - these agents will take a cut from the price but you may still get substantially more than the surrender value of the policy with the original company.

Whatever you decide endowment policy sales are a growing industry and something that is certainly worth investigating if you are thinking of selling your endowment.

Article Source: http://EzineArticles.com/?expert=Robert_H._Jones

What Options Does a Life Insurance Provider Normally Supply?
By David H Thomson

The basics of a life insurance policy are that the supplier will payout a lump sum upon someone's death, while many deals also supply a pay out if someone is diagnosed with a critical illness. But there are a range of additions and phrases which can seem complicated but which are easily explained. Before someone takes out a policy it can pay to fully understand what each life insurance provider is offering them, as it is easy to get bogged down in different terms and jargon.

To start with term life assurance is one of the simplest forms of deal and offers protection for a set amount of time, perhaps a number of years at a relatively low cost. This normally involves paying a regular premium to the life insurance provider who in exchange will payout a lump sum when the policy holder dies. Should a policy run out and the customer is still alive, no payout is made, and the insurer will only pay out if someone dies before the policy runs out. Term assurance often involves the option to take out critical or terminal illness cover for an extra premium.

Critical illness cover is the phrase used for policies which pay out if somebody is diagnosed with an illness which is extremely serious, but not necessarily fatal. This normally pays a lump sum when the policyholder is diagnosed with something like cancer, a stroke, or multiple sclerosis. Different policies will cover different conditions and it is important to be sure what you are applying for and what is protected by a policy. You will need to disclose pre-existing medical conditions to the insurer, meaning something which an applicant has been diagnosed with before taking out the policy.

Something called decreasing term assurance will see the payout level steadily go down over the life of the policy, and people often use these to cover mortgages, as the sum which the insurance company would payout goes down over time as the amount owed on someone's mortgage typically does.

A life insurance provider may also offer a whole of life assurance deal, which guarantees a lump sum whenever someone dies, whether that is in six months, five years, or 20 years. Provided the premium continues to be paid, the cover will still be active, but this can be more expensive as a payout of some kind is virtually guaranteed.

Endowment life assurance policies are a form of saving scheme which have a form of life cover attached, and are often connected to mortgages and pays out money which has built up over time at the end of a policy term. If the policyholder dies before the end of this term, a payout sum will be paid plus any returns made.

A life insurance provider will often supply these deals as well as a some other options and variations - although all the options and phrases can be confusing and even intimidating to the novice, many of the differences are quite straightforward and can be useful to different people. Whatever someone's budget or needs, there is likely to be a plan suitable for them.

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best deal on their life insurance, critical illness cover and home and motor insurance.

Article Source: http://EzineArticles.com/?expert=David_H_Thomson

Regular Endowment Insurance in Singapore
By Kerry Gan

What is Regular Endowment Insurance?

Endowment Insurance is another type of permanent insurance. It is designed to payout the death benefit when the insured dies during the term of the policy or survives at the end of the policy term.

It is designed to cater for those who wish to put aside a portion of income for long term saving while enjoying the insurance protection.

Unlike a Whole Life policy, a Regular Endowment policy has a fixed maturity date. Typical maturities are 15, 20 and 25 years up to a certain age limit (e.g. 70).

Features of Regular Endowment Insurance

1) The premium is higher than Term and Whole Life Insurance policies in view of its high savings/investment element.

Usually a fixed amount is payable on a regular basis (i.e monthly, semi-annually and annually) throughout the premium payment term (i.e 15, 20 and 25 years).

Lump sum payment (single premium) is also allowed.

2) If the insured is alive after the policy is matured, the maturity Value (normally will be the surrender value) will be paid to the insured.

If the insurance is cease before the maturity, the death benefit (normally will be sum assured) will be paid to the insured’s family.

3) A total and permanent disability benefit is usually attached to an endowment policy as part of its basic benefit. Usually all types of riders are allowed to be attached to the policy.

Upon total and permanent disability, the sum assured is paid in installments, e.g. 10% - 1 st year, 10% - 2nd year, 10% - 3rd year and 10% - 4th year and 60% - 5th year.

4) Policy lapses if the premium is not paid within the 30-days grace period when the policy has not acquired any cash value (usually within three years from the date of inception

However, once the policy has acquired cash value, the insured can avoid having his policy lapse by activating the non-forfeiture option, such as a reduced paid-up policy.

5) Cash value builds up quickly and is payable should the insured decide to surrender/terminate his policy after a number of years (usually two or three years).

6) Non-forfeiture option is available once the policy acquires a cash value.

7) Policy loans are allowed once the policy acquires a cash value.

This feature enables the insured in temporary need of cash to borrow against the policy's cash surrender value. Interest will be charged on the loan.

Who this is for?

- For those seeking potentially high returns for your savings

Word of Caution from Kerry

- Buying an endowment policy is a long term commitment. An early termination of the policy usually involves high costs and surrender value payable may be less than the total premiums paid.

- If the insured commits suicide within one year of purchasing the policy, no claim can be made and the insurance company will only return back the premium paid without interest,

- Any disability or terminal illness caused directly or indirectly by any of the following occurrences, no claim can be made on the Total & Permanent Disability Benefit:

(a) Self-destruction or any attempted threat while sane or insane;

(b) Military or naval service in time of declared or undeclared war;

(c) Entering, operating, or servicing, riding in or on, ascending or descending from or with any aerial device or conveyance except while the Insured is in an aircraft operated by a commercial passenger airline on a regular scheduled passenger trip over its established passenger route or by the Republic of Singapore Air Force.

http://www.insuranceuniversity.com.sg/life-insurance-knowledge-center/regular-endowment-insurance.htm

Article Source: http://EzineArticles.com/?expert=Kerry_Gan

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All About Endowment Life Insurance Information By Insurance Experts

2009-08-02T07:36:00.000-07:00

Life Insurance Policies
By Jason Gluckman

Life insurance policies differ from company to company, and hence the various parameters have to be analyzed meticulously with the help of experts and financial advisors to get the best deal.

Article Source: http://EzineArticles.com/?expert=Jason_Gluckman

Life Insurance Policies Explained
By Matt McWilliams

Six Basic Kinds of Life Insurance

Regardless of how fancy the policy title or sales presentation might appear, all life insurance policies contain benefits derived from one or more of the three basic kinds shown below. Some policies due combine more than one kind of life insurance and can be confusing.

Term Life Insurance

Endowment Life Insurance

Whole Life Insurance

Variable Life Insurance

Universal Life Insurance

Variable Universal Life Insurance

Term Life Insurance

Term life insurance is death protection for a term of one or more years. Some companies are offering policies with terms up to thirty years. Premiums on term insurance remain level during the life of the policy. Term Life Insurance has no cash value account. Death benefits will be paid only if you die within that term of years. Term insurance generally provides the largest immediate death protection for your premium dollar.

Some term life insurance policies are renewable for one or more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. You should check the premiums at older ages and the length of time the policy can be continued.

Some term insurance policies are also convertible. This means that before the end of the conversion period, you may trade the term policy for a whole life or endowment insurance policy even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.

Life Insurance "Endowment"

An endowment insurance policy pays a sum or income to you, the policyholder, if you live to a certain age. If you were to die before then, the death benefit would be paid to your beneficiary. Premiums and cash values for endowment insurance are higher than for the same amount of whole life insurance. Thus endowment insurance gives you the least amount of death protection for your premium dollar.

Whole Life Insurance

Whole life insurance gives death protection for as long as you live. The most common type is called straight life or ordinary life insurance, for which you pay the same premiums for as long as you live. These premiums can be several times higher than you would pay initially for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term insurance policy until your later years.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher than for ordinary life insurance since the premium payments are squeezed into a shorter period.

Although you pay higher premiums, to begin with, for whole life insurance than for term insurance, whole life insurance policies develop cash values which you may have if you stop paying premiums. You can generally either take the cash, or use it to buy some continuing insurance protection. Technically speaking, these values are called nonforfeiture benefits. This refers to benefits you do not lose or forfeit when you stop paying premiums. The amount of these benefits depends on the kind of policy you have, its size, and how long you have owned it.

A policy with cash values may also be used as collateral for a loan. If you borrow from the life insurance company, the rate of interest is shown in your policy. Any money which you owe on a policy loan would be deducted from the benefits if you were to die, or from the cash value if you were to stop paying premiums.

Variable Life Insurance

Variable life insurance, provides permanent protection for you and death benefits to your beneficiary upon your death. The value of the death benefits may fluctuate up or down depending on the performance of the investment portion of the policy. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum, however, a minimum cash value is seldom guaranteed. Variable is a form of whole life insurance and because of investment risks it is also considered a securities contract and is regulated as securities under the Federal Securities Laws and must be sold with a prospectus.

Universal Life Insurance

Universal Life insurance is a variation of Whole Life. The insurance part of the policy is separated from the investment portion of the policy. The investment portion is invested in bonds and mortgages, the investment portion of Universal Life is invested in money market funds. The cash value portion of the policy is set up as an accumulation fund. Investment income is credited to the accumulation fund. The death benefit portion is paid for out of the accumulation fund. Unlike Whole Life Insurance, the cash value of Universal Life Insurance grows at a variable rate. Normally, there is a guaranteed minimum interest rate applied to the policy. No matter how badly the investments go by the insurance company, you are guaranteed a certain minimal return on the cash portion. If the insurance company does well with its investments, the interest return on the cash portion will increase.

Variable-Universal Life

Variable universal life insurance pays your beneficiary a death benefit. The amount of the benefit is dependant on the success of your investments. If the investments fail, there is a guaranteed minimum death benefit paid to your beneficiary upon your death. Variable universal gives you more control of the cash value account portion of your policy than any other insurance type. A form of whole life insurance, it has elements of both life insurance and a securities contract. Because the policy owner assumes investment risks, variable universal products are regulated as securities under the Federal Securities Laws and must be sold with a prospectus.

Rates and coverage vary form state to state. Shop around on your own and talk to an independent insurance agent to make sure you get a plan that's right for you. It's amazing how much rates may vary from company to company for the same coverage.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com

Article Source: http://EzineArticles.com/?expert=Matt_McWilliams

Is Life Insurance an Investment?
By M Kelly

Life insurance is often considered to be a kind of investment that one makes for his future and in order to safeguard one's family's future. It is not exactly an investment but quite close to it. It helps provide a security to your family and saves them from financial crisis at the time of your death.

In the simplest form, a life insurance policy is a contract between the insured and the insurance company under which the latter promises to an assured sum to the nominee of the policy. The nominee is the person who receives the insured amount upon the death of the insured person. Thus it is an investment towards one's life and toward his family's future. The insured person may not be able to enjoy the benefits of the investment but his family does and thus it is considered to be beneficial.

In most of the life insurance policy, the insured amount is realized on the death of the insured person only. But nowadays there are certain flexible insurance policies which works like investment as well. For instance the endowment life insurance policies have a predefined maturity date and the insured party can invest in them to increase their capital.

In case of an endowment policy, the policy holder needs to pay a higher premium for a fixed tenure, decided under the contract. Interest is added to the capital amount under this policy which can then be released one the policy matures. These types of policies allow you to withdraw the amount before time and thus you can rely on them during financial crisis.

Similarly there are participating life insurance policies also which work as investment. Under this policy, the premium paid by the insurer is paid to the insurance company which further invests it. When the insurance company earns any profit on those investments then the insured person also receives the benefit. The profit is shared with the insured person whose money has been invested by the company. Even if the company does not make any profit, a minimum insured amount is paid to the insured party upon the maturity of the policy.

These participating policies are generally offered by mutual life insurance companies.

These companies use the premium paid by the insured party and then use them as collective investment that is invested in mutual funds. The returns from the investment depend on market condition and various factors therefore it is essential to choose the right company. The company might invest the amount in properties or other investment plans and when they get profits on these investments, it is equally divided among all the policy holders of the company.

If you are opting for participating policies then you need to consider certain factors like past performance of the insurance company, financial strength of the insurance company, returns in the past, contract period and other such factors.

Similarly you can invest in insurance bonds also which are basically meant for investments. It has a single premium similar to an investment plan. In other words, you need to make the payment once only and enjoy the interest on it.

If you are searching for life insurance policy that acts as bond then you can opt for investment bonds. Under this you need to pay one premium only and can enjoy the investment. Investing in these insurance bonds and other life insurance policies is beneficial otherwise as well. It helps you save your taxes and secure your future.

If you wish to invest towards your future then you can opt for pension plans that are offered by some of the life insurance companies. Under this you would be required to buy a policy and pay a small premium regularly till you retire. Once you have retired, you can enjoy regular income in the form of the pension that you would get from the life insurance company. This way you would not have to depend on anyone and can invest towards a better future for yourself.

These types of investment - insurance policies are gaining a lot of popularity these days as they allow you and your family to have a better future. However, not all types of life insurance policies can be considered as investments. Thus if you wish to buy a life insurance policy then you need to first choose the kind of policy you need.

If you wish to increase your capital then you can invest in the investment policies which would allow you to enjoy the profits and dividends. But if you wish to provide protection to your near and dear ones upon your death then you can choose to buy the protection policy. Under the latter, the assured amount is paid to the nominee mentioned in the policy, when the policy owner dies.

The dividends and the profit you receive in case of an investment policy also depends upon the kind of policy you choose. Some of the investment policies pay you a fixed interest rate, while there are other policies wherein the amount of returns you get fluctuate according to the profit made by the company.

So it depends on you to choose the kind of policy you need. In case of the investment policy you may have to face risks as it depends on the market condition. On the other hand, life insurance policies extend the benefit to your nominee but do not involve any risk as such. Therefore it is best to decide what you expect from your policy and then invest in a policy that provides you with the maximum benefits.

M.S. Kelley is the president of 1 800 Insurance Quotes where you can compare life insurance rates and research your life insurance needs.

Article Source: http://EzineArticles.com/?expert=M_Kelly

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All About Endowment Life Insurance Information By Insurance Experts

2009-08-02T07:32:00.000-07:00

Your Need Should Decide Your Policy
By Addi Vardhaman

Any Indian above 18 years of age, who is eligible to enter into a contract, can go for an insurance policy from the financial institutions dealing with life insurance policies. Subject to specific terms and conditions, a policy can be taken on the life of a spouse or child too. The whole life insurance coverage policies are the simplest of policies. In such policies you have to pay a fixed premium every year based on your age and other factors. After purchasing the policy, you will earn interest on the policy's cash value as the years roll by and your beneficiaries get a fixed benefit after your death.

The premium in case of the whole life coverage insurance policy is the same even in later years as it was when the policy was taken. These insurance policies are valuable as they provide long-term cover and accumulate cash values that can be used for emergencies or to meet other financial objectives. The surrender value of this policy offers you an extra source of retirement money if you require it.

Insurance is no more the mere tax saving tool and the Indian market is full of diversifications now. So availing best life insurance policy has now become a little bit confusing. For this you have to take the knowledge of the latest diversifications in the life insurance sector. An endowment life insurance policy is designed specifically to provide a benefit in the lifetime of the insured. Thus, it is more of an investment rather than a tax saving tool. Endowment life insurance is also one the best life insurance policy and pays the face value of the policy either at the time of death of the policyholder or at the time of maturity of the policy (as depicted at the time of insurance purchase).

The endowment insurance policy is a method of accumulating capital for a specific purpose and protecting this savings program against the premature death of the insured. Many investors use this policy to fund anticipated financial needs, such as college education or retirement etc. The premium of an endowment life policy is much higher compared to the policy of life coverage only. There are some Money-back policies in the realm of best life insurance policy. They are generally the endowment policies. A part of the sum insured is paid to the policyholder as survival benefits at fixed time intervals before the maturity date. Risk cover on the life continues for the full sum assured is there till the tenure of the policy even after payment of survival benefits.

Searching online is the cost effective way to find the best life insurance policy. Through online mode, you can not only garner necessary information but also have the best deal. In annuity life insurance schemes, the policyholder's regular contributions over a period of time (or a one-time contribution) accumulate to form a corpus fund. This corpus fund is used to generate a regular income that is paid to the policyholder till his death, starting from the desired retirement age. There are annuity schemes which have the option to pay survivors a lump sum amount upon death of the insured, along with the regular income he receives while he is alive.

In some life insurance policies, insurers guarantee the bonus/profit declared as a certain amount per thousand of the assured sum. This assured bonus is credited to the policyholder irrespective of the insurer's performance and is known as guaranteed additions to the return of the insured. Guaranteed additions will be payable at the expiry of the term of the policy or death of the policyholders. So you are advised to go for the best life insurance policy that suits your needs the best.

About The Author: For more information about general insurance policies and life insurance policy. Please visit our website: http://www.paisawaisa.com/

Article Source: http://EzineArticles.com/?expert=Addi_Vardhaman

Understanding Life Insurance Basics
By Julita Viola

Who Really Needs Life Insurance? Or Do You need a Life Insurance Companies address and and tel. #? If you need more info and tips go to: http://www.jgvfinance.com

Article Source: http://EzineArticles.com/?expert=Julita_Viola

With Profit Endowment Policy Holders, See Reduced Annual Bonuses
By Isla Campbell

Recently, many of the UK's leading insurance companies announced reduced annual bonuses for With Profit Endowment policy holders, yet another blow for homeowners who took out endowments during the 1980s and 1990s, as they will now see increased shortfalls on their mortgage liabilities.

Some of the big names that have declared reduced annual bonuses are Scottish Widows, Friends Provident, Norwich Union and Scottish Life, while some have bucked the trend, and increased payouts - these include Standard Life, Prudential and Legal and General. But unfortunately for many endowment policy holders, payouts are down.

Annual bonus declarations vary from insurance company to insurance company because they are influenced by a number of factors, which include past investment performance, previous bonus announcements and the financial strength of the company.

For example, those who have policies with Scottish Widows, Friends Provident, Norwich Union and Scottish Life will see reduced annual bonuses in 2008 compared with the previous year. Based on a male policy holder with a 25 year endowment policy who was aged 30 when he took out the policy paying £50 per month, a Scottish Widows endowment would see a reduction of £442 between 2007 and 2008.

A Friends Provident policy would see a payout of £37,540 in 2007 reduced to £36,425 in 2008, Norwich Union's payout would decrease by £2,776 and a Scottish Life policy would decrease by more than 8 per cent - from £37,132 in 2007 to £34,196 in 2008.

Where a policyholders' endowment continues to under-perform, the insurance company should write to them, warning them of the potential shortfall. However, there are things that can be done to address this potential shortfall before it is too late.

Make a complaint - Many endowment policy holders have successfully won complaints cases against insurance companies because they say the potential risks of endowment were not explained properly to them when they took the policy out. The FSA has more information about endowment complaints.

Surrender - Because of the bad press that endowments have received over the last 10 years or so, many policyholders are trying to get rid of them, and will often just settle for the surrender value offered to them in the hope of cutting their losses and getting back cash.

Sell - There is now a fairly healthy secondhand market for endowments and those who have sold their endowment policy on to an investor have found that they got a lot more than they would have if they had settled for the surrender value - up to 45% in some cases. The reason is, potential investors see endowments as an attractive investment, due to relatively low risk investment strategy and partially guaranteed return.

But the best advice is to get advice; if you are uncertain about what to do, seek independent advice from a specialist.

Isla Campbell is an online, freelance journalist and avid traveler and pilates devotee. When not on the road she lives on the outskirts of Oban.

Article Source: http://EzineArticles.com/?expert=Isla_Campbell

The Best Way to Find the Most Affordable Life Insurance to Fit Your Needs
By Eunice Wallace

It is difficult to find which is the most suitable and affordable insurance to purchase from the numerous insurance policies available. Life insurance provides a source of income for the family to cope with the loss of income in the event of insurer’s death. This is a great help in taking care of the expenses and in paying of bills and final expenses. You have to understand how the insurance works for your benefit.

Life Insurance- Evaluate The Options Available

Basically, Term and Permanent life insurance are on sale in the market. Term life insurance has a specific premium for specified period and does not accumulate cash value. If insurance is purchased at a younger age you end up paying lesser premium. Permanent life insurance is slightly different in that it remains active until maturity or the insurer fails to pay his/her premiums in time.

However, this type of insurance has the disadvantage of being expensive because of reduction in risk amount due to building of cash value. There are three types of permanent life insurances - Whole life, universal life and endowment.

Whole life insurance has a number of advantages. There is a guaranteed cash value and death benefit. Annual premiums are fixed without any reduction in mortality and expense charges. You can opt for increasing the death benefits by paying additional premium or using dividends. The disadvantage with such policies is that the premium rate cannot be changed. The beneficiary receives death benefits only and not the cash value.

Universal life insurance tries to overcome the disadvantages of whole life insurance. The premiums are lower, flexible, the internal rate of return is high due to volatile nature of the market and guaranteed interest as fixed by the company is credited to the policy. It also provides cash account which keeps swelling as premiums are paid.

The biggest advantage is that provides an option to opt for payment of face amount or face amount plus cash amount at the time of death. The disadvantage of the policy is that it lapses if sufficient premiums are not paid, the cash values are not guaranteed, mortality and administrative charges are reduced from the cash value.

Endowment life insurance is more expensive than whole and universal life insurances because of shorter period of payment of premiums. This type of policy matures before the normal endowment age.

A permanent policy cannot be cancelled by the insurer except when insurance is purchased by fraudulent means by the insurer. The time limit for cancellation is within a period of two years.

An expert on life insurance can guide you through the most affordable insurance plan that fit your needs.

For more free content see: Music Articles and Natural Health Directory and Articulos Espanoles

Article Source: http://EzineArticles.com/?expert=Eunice_Wallace

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All About Endowment Life Insurance Information By Insurance Experts

2009-08-02T07:19:00.000-07:00

Endowment life insurance has various products, find out more by consulting the insurance agents or log on to: endowment life insurance site, or visit us at:
http://www.indianapolislifeinsurance.net

Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong

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Your Life Insurance Policy

Endowment Plan in Life Insurance
By Rohit Kumar Shukla

http://www.policybazaar.com/life-insurance/life-insurance-india.aspx

Article Source: http://EzineArticles.com/?expert=Rohit_Kumar_Shukla

Endowment Insurance Explained
By Joe Stewart

Article Source: http://EzineArticles.com/?expert=Joe_Stewart

Six Basic Types of Life Insurance.
By Robert Barabash

Life insurance is a big part of financial planning for the future in the event of your death. It pays for the funeral expenses and all other debt left by the deceased. It is important to remember that not only should the bread winner be covered, but the spouse should be covered too. How will the remaining spouse cope with the added expense of child care etc. Select the best policy that fits your need and your budget. Decide how much you need to cover mortgage, car loans, credit card debt and add three times your yearly wage to calculate your minimum life insurance needs.

What are the various type of life insurance policies?

Term
Endowment
Whole life
Variable life
Universal life
Variable universal life

The two most common types are term and whole life. They offer the best coverage at the least risk. Choosing the type of insurance should be based on your needs and your budget.

Term insurance-death protection for one or more years. Some companies offer terms up to 30 years. Premiums are consistent and offer no cash value. Largest death value for the least amount of money. After term expires, it can be renewed at a higher rate based on age.

Endowment-Pays a sum or income to you, the policy holder if you live to a certain age. If you die before the endowment date, the death benefits are paid to the beneficiary. Premiums and cash values for endowment insurance are higher than for the same amount of whole life.

Whole life- Gives you death protection for as long as you live. Premiums are more then term life but also accumulate cash value which can be put towards premiums.

Variable life- Provides permanent protection and pays money to the beneficiary upon death. Value fluctuates up and down because the death benefit is based upon the performance of the investment portion of the policy.

Universal life- Is a variation of whole life. The insurance part of the policy is separated from the investment portion of the policy. There is a guaranteed minimum interest rate which increases if investments do well.

Variable universal life- Pays the beneficiary a death benefit. The amount paid is dependent on the success of the investments. It is a combination of both life insurance and a securities contract.

What type of policy you choose should be based on your needs and your budget. For a more in-depth analysis of life insurance policies and five free no obligation quotes check out our web site. Remember some sort of insurance is better than none.

Robert Barabash is the owner of a website that explains the various forms of insurance in a way that the public can understand. The valuable information available allows you to make an educated decision. You can also get five no obligation quotes on all forms of insurance products such as auto, home, renter, life,disability and pet insurance. For more information go to http://allinsurancesite.com

Article Source: http://EzineArticles.com/?expert=Robert_Barabash

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