The Benefits of Endowment Life Insurance

Endowment life insurance is often called a college savings plan, and it is a specialised type of insurance. These policies combine term life insurance with a savings program, and you get to choose how much you want to save per month as the policyholder. Based on the contributions you make each month, you are guaranteed a certain payout, also called an endowment, once the policy has matured. You may then use this endowment for your child’s tuition, fees, books, living expenses, and other costs associated with attending school.

If you should die before your policy can mature, your child will receive the payout as your death benefit, and they will thus still have the money they need to use for college or university. This option promises a risk-free, guaranteed return on a guaranteed date as long as you make the fixed payments. In addition, it is not counted against your child’s financial aid eligibility.

Two Benefits for the Price of One

Term life insurance, the type included in an endowment insurance policy, is inexpensive if you are young and healthy. If you break up your monthly payment to the policy and use part of it for college savings and the other for term insurance, you get more college savings and more insurance for the same amount of money. Find out endowment insurance in Malaysia to discover your options and learn what you need to do to get started.

This is not the only policy that combines savings with insurance, but it is your best option if you want to both save some of your money and get yourself insurance. These provide a backup plan on which you can rely, and that is a serious benefit when you look at the many expenses yet to hit your wallet in the coming years.

Protection for Decades

Your policy will keep you protect for as many as 21 years, and you have the flexibility to choose to pay premiums for six to ten years. This is extremely useful, as each situation is unique, and you cannot expect your needs to be the same as someone else buying the same policy. When you purchase this type of insurance, you give yourself the guarantee of annual cash payment from the second year of your policy onward. In addition, you are guaranteed to be accepted if you find the right, reputable Malaysian insurers. You will not even be required to deal with medical underwriting.

Although bonuses are the only part of your policy that are not guaranteed, you may see even more of a return than you hoped with bonuses throughout the term of your policy. In addition, you are guaranteed a payout once your policy reaches maturity. This is a serious benefit to help you protect yourself and your loved ones from the repercussions of your death. You are also protected against the effects of total and permanent disability, as this will stop you from doing any kind of work. The minimum age of entry is 5-years-old at the next birthday, and the maximum age is 65 at the next birthday. With this wide range, you can be sure that you can always get a policy you need.