The terms of the contract are calculated depending on how much the policyholder wants to accumulate by the end of the endowment life insurance policy. The money is transferred monthly, semi-annually or annually, at the discretion of the parties.
When the policy expires and the insured event does not occur, the policy owner typically receives all deposited funds and the proceeds from the securities.
If insurance event occurs, the policy owner/legal successor receives the following:
- the entire amount specified in the contract - regardless of how much money was deposited;
- additional compensation also specified in the contract;
- regular deductions if the policyholder becomes unable to work.
Endowment life insurance policies are issued by banks or insurance companies. The main thing is to choose a reliable insurer with a valid license.
You can assign payment under endowment policy to yourself or another person. If the insured person passes away, the company will almost immediately transfer the money to the beneficiary assigned in the contract (you can specify any person, including a relative). However, if the successor is not specified, in the event of the insured’s death, the money will be received by the heirs within six months according to the standard procedure for entering into inheritance.
Who endowment life insurance is suitable for?
ULI is worth using when you want to combine business with pleasure: get both insurance and investments in one product. ULI is also suitable for people whose work involves high hazard.
If you have a dangerous job, you want to insure yourself and increase your capital, endowment is your choice.
The return depends on accumulated funds, insurer’s commissions and company’s securities. You can get 2–7% per annum in average under endowment policy upon expiration of the contract.
Endowment life insurance policies most often include the risks of death, disability, serious illness and loss of ability to work. They are always paid in full, no matter how many payments you have made.
Source: https://journal.sovcombank.ru/umnii-potrebitel/nakopitelnoe-strahovanie-zhizni-chto-eto-takoe
Photos are from open sources.
