A life endowment policy is a policy that guarantees that the guaranteed cash value will equal the face amount of the policy at at specified time. A whole life policy is an Endowment at 100. Another example a $100,000 Endowment at age 65 plan would have a guaranteed cash value at age 65 of $100,000 plus any accumulated dividends.
They were once quite popular, because of the guarantees and tax advantaged growth. New product advancements and changing tax laws have caused few (if any) companies to even issue them. (In Canada at least). The notable exception are Whole Life policies which endow at age 100 (The face amount equals the guaranteed cash value)
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Permanent life insurance policies are endowment policies. They all have an endowment date. That is the date when the face amount and cash value will be equal. It is also the date that the policy terminates. Short term endowments were quite popular savings programs in the past but are not as popular as they once were. However, if you want a specific amount of money by a specific date, an endowment contract might be the answer because it will complete itself if you don’t survive to that date.
That is a great question! When your policy endows, it pays out, or the cash value has equaled the face value of the policy. For example, a policy that endows at age 100 will give the policy owner the option of taking the face value of the policy in cash at that point, or leaving the policy in force until such time as it is needed. I hope that helps! Thanks for asking!
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They were once quite popular, because of the guarantees and tax advantaged growth. New product advancements and changing tax laws have caused few (if any) companies to even issue them. (In Canada at least). The notable exception are Whole Life policies which endow at age 100 (The face amount equals the guaranteed cash value)
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.