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How to evaluate pros and cons of different endowment life insurance policies

Endowment is a form of long-term financial commitment that requires careful consideration of its pros and cons before making a decision.
How to evaluate pros and cons of different endowment life insurance policies

The main perks of this type of insurance include the following:

Guaranteed life protection: from the moment of the first payment, the policyholder is provided with coverage for the full policy amount.

Possibility of expanding coverage: the policyholder may sign additional agreements to protect against various risks.

Incentive for savings: the policy maintains discipline in the regular formation of savings, which helps achieve financial goals.

Fund security: insurance benefits are protected from seizure and arrest providing financial stability in the event of financial trouble or policyholder’s death.

Fast payment: in case of policyholder’s death, heirs can receive payments within a month.

However, it is necessary to consider some drawbacks:

  • Risk of denial in payment: if the cause of death is not covered by the terms of the policy;
  • Reduction of insurance amount when adding extra risks and additional costs to cover them;
  • Incremental costs for early termination of the contract.

Source: https://www.pravda.ru/news/insurance/2018111-nakopitelnoe-strakhovanie/

Photos are from open sources.

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