Endowment Policy Virginia VA

Reader’s Question:

I am just a curious George who wants to know more about endowment policies. What are endowments?

George

Virginia Beach, VA

Endowment policies are whole life insurance contracts designed to give you a hefty amount of money or a lump sum upon maturity. Usually, the maturity of the policy is pegged at 10, 15 or 20 years–meaning, in the 10th, 15th or 20th year anniversary of your policy, you will receive a lump sum, assuming of course, that you are still alive.

A good feature of an endowment policy is that it can be cashed in even if it has not reached its maturity date. When you surrender your endowment policy, you will receive a surrender value, which will be determined by the issuing insurance company. The surrender value will depend on how long the policy has been in force and how much premiums have been paid on to it.

You can also sell your endowment policy to a third party. Once you sell your endowment policy, it will be called a traded endowment or second-hand endowment policy. Once sold, you are naturally transferring beneficial rights of the policy to the new owner. It is now up to the new owner to continue future payments on the policy’s premium.

George, I hope it doesn’t come to the point that you have to sell your endowment policy. Always bear in mind that an endowment policy is best when you are preparing for a source of funds in the future, like a retirement fund or for your children’s college fund. Contact your agent in Virginia, and he’ll give you a quote for the type that will best fit your needs and budget.

Tags: life insurance, life insurance policy, life insurance premium, life insurance quote