Many business terms are difficult to understand, and so many people turn away without even finding out what the term means. Lets take for instance endowment life insurance. This can be a great product and one which many people may want, but the term is difficult to understand, and it “sounds expensive.”

Easy To Understand

In reality endowment life insurance is very easy to understand. It is a life insurance policy much like term life insurance which lasts 20 or 30 years, but differently than term life insurance you receive money after a certain period of time whether you live or die. With endowment life insurance you just can’t lose, however you might think that this type of insurance is somewhat expensive. In some cases, it can be, but you can also find low cost endowments for cheap life insurance.
With most endowment insurance policies you have to pay more of an insurance premium than you would with any other type of insurance, however there is a way to pay lower insurance premiums on endowment insurance and that is by purchasing a low cost endowment life insurance policy.

Lower Insurance Premiums

This will give you a lower insurance premium but it also means that the amount you receive will be smaller. If you live to the end of the policy then you receive you premiums back and these are not taxable. The amount you can lower the payments of endowment insurance will depend on several factors like your age, whether you smoke or not, and other aspects of your like. Generally speaking non-smokers pay about 50% less in premiums than people who smoke.

Ask your financial adviser about endowment life insurance policies. This may be a great insurance option for you. You wont really know what the premiums will be until you get an estimate, and being shy won’t get you those returns you need when you are older.