10 Reasons to Buy Endowment Life Insurance

Paying for your children’s education can be a scary thought in today’s time of financial woes. Various investment choices are available and it is only confusing us even more. Of course there are a lot of good investment choices out there that include college savings. The catch is that all of these college saving schemes have yearly limits when it comes to the amount of money one can actually put in them and many if not all families would like to have a guaranteed amount of college money regardless of the constant market fluctuations.

Families usually turn to endowment life insurance policies when they want to add some security to their college or university saving fund, since endowment life insurance works in two ways. It works similar to most traditional life insurance policies wherein it will pay a lump sum in the unfortunate event of your death, or a lump sum if you outlive a set time period. Unlike a traditional life policy you will be compensated if you outlive a set period. This fact will make it an attractive addition to your child’s college saving fund. Another positive side is the flexible time period that you can choose, either 10, 20 or 30 years and you will be compensated when you outlive that period, of course if you keep on paying the premiums.

The premium costs might deter some from this savings scheme, since the shorter the time period the higher the premiums will be. However the attraction lies in the fact that a sum will be guaranteed in a certain time period.

Of course before any financial decision it is best to advise your local accountant and tax advisor to see if the investment will be a smart one, the same rule applies for choosing the endowment life insurance policy. Of course to rely solely on the endowment policy is not a smart investment, however a combination between other investment vehicles and an endowment policy would be a good choice.

The top 10 reasons for choosing a life endowment policy are:

· Endowment policy provides a permanent sum of money (face amount or death benefit)

· Payment whether you live or die

· Time of maturity can be variable, since you don’t have to wait for a 100 years

· Cash value builds up faster

· Flexible endowment time period

· Combination between life insurance and specific needs insurance

· Great addition to other savings methods

· Provides peace of mind

· Can be used as flexible business capital in the event of death

· Reduces the risk of family protection