Endowment Policy Ohio OH

Reader’s Question:

My uncle, who lives right next door to me here in Ohio, received a lump sum from his life insurance policy which he got 20 years ago. I want something like that for my daughter. I asked my uncle, but he doesn’t remember what kind he bought. What kind of insurance should I get, so my daughter receives a lump sum like that after 20 years?

John

Akron, OH

As they say, John, you reap what you sow. Your uncle probably got for himself an endowment policy. Now, your uncle is well-endowed, indeed.

You are correct in wanting to give your daughter a headstart, so that she can enjoy the lump sum she will get by the time the policy matures. Basically, an endowment policy is a life insurance product, of course, that gives a lot of cash after 15, 20 or 30 years, depending on which you choose. If you let it reach maturity, you are guaranteed an amount we call as the sum assured. Apart from that, you still get life insurance coverage if you can hang on to it till maturity.

You can, however, also cash it in. Endowment policies can be surrendered, and you would still get something, but of course only after a certain period of years. Unlike other life insurance products, if you are unable to pay for the premium, they will use up your cash value to pay for your unpaid premium until it zeroes out and eventually expires. The amount you will receive if surrendered the policy will depend on how long the policy has been in force. Longer time, of course, yields higher cash.

If you already have an agent in Ohio, I’m sure that he would be glad to explain all the intricacies of a life insurance policy with endowment features to you, so give him a call now.

Tags: life insurance coverage, life insurance policy, life insurance premium