Mat Policy Endowment Annuity

The endowment life insurance policy promises a risk free guaranteed return on a guaranteed date as long as you make the fixed monthly payments.

Mat policy endowment annuity.

Plus he wouldn t have to deal with the insurance expenses of an endowment policy. John is a doctor and wants to save 400 000 by the time he s 50. As nouns the difference between endowment and annuity is that endowment is something with which a person or thing is endowed while annuity is a specified income payable at stated intervals for a fixed or a contingent period often for the recipient s life in consideration of a stipulated premium paid either in prior installment payments or in a single payment for example a retirement. A 1 the lawful beneficiary assignee or payee including the insured s estate of a life insurance policy or endowment policy shall be entitled to the proceeds and avails of the policy against the creditors and representatives of the insured and of the person effecting the policy or the estate of either and against the heirs and.

John could save his money through an endowment policy but he could do the same thing with an annuity. As annuities evolved so did the guarantees in the contracts. If your family needs a specific amount of money by a certain date the endowment pays it whether you live or die. Even though you have a savings aspect in an endowment policy you also have a death benefit.

An endowment is a life insurance policy with cash value and an annuity is a savings vehicle. Annuities are contracts and as such have specific contractual terms and agreements that must be spelled out. Scenario 2 endowment insurance as an annuity. Among those is an end date.