What to know about Endowment benefits

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Endowment life insurance is an insurance resembling a college plan. This type of life insurance combines term life insurance as well as a savings program. People who enter an endowment life insurance plan get to choose how much money they can save and how long they’ll be doing it for. It is through these decisions that the monthly payout, or endowment, is calculated. Endowment policyholders use it for college tuition, fees, living expenses, and more for their children. Here are some of the benefits of this kind of plan.

Two for one

As mentioned earlier, endowment plans are a hybrid of health plans and college plans. When people who are young and healthy consider that, this is a very affordable plan. Although this isn’t the only hybrid plan out there.

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Zero risk

Endowment plans have no investment or interest rate risks. The only catch is that the returns are pretty low, which is more or less the downside of playing it safe. Those who want a bit of a risk can look into either a prepaid tuition plan or a college savings plan.

No medical exams needed

This would seem like a pretty good deal since a lot of life insurance policies require medical exams. This is also why an endowment plan would be very much preferred for people with a medical history that would otherwise ruin their chances of getting other life insurance policies.

Delos H. Yancey is an important part of State Mutual Insurance, a company that provides Medicare Supplement insurance with community service as its main goal. For more on insurance and Medicare, visit this site.