Before we begin this guide you have to understand what IS an endowment policy , Mainly it’s a mix of life insurance inlcuding investment growth saving plans , It’s a premium based package that has a certain expiry period , This premium paid into the endowment is invested in the stock market by the policy office , And as the endowment policy matures , Its holder is paid the agreed upon amount along with bonueses , If the holder dies in its mid-term then the insurance is paid to his beneficiaries .
Endowment policies can also be used to repay mortgages , While the endowment mortgage is a different story as the premium paid on a monthly basis includes the interest on the loan .
Steps you need to take :
Evaluation of your Financial needs :
You have to assess all of your financial needs and it would be even more favourable if you were to consult a pro before you start buying endowment policy , As there is a plethora of of types , For example :
Low cost endowment,Traditional with profits endowment,Traded endowment, Unit linked endowment policy..etc
And of course each and everyone of them has pros and cons of their own , That reinforces that fact that you should find out your financial needs and capabilities and invest in the right type that suits you completeley .
Choosing an Insurance Company with a Great Reputation :
This is very important , You have to choose a top endowment company for buying endowment policy before you start dealing with them or giving them your trust , Find out the company’s market standing and verify every single fact yourself , This way you know for sure whom you’re giving your hard-earned money to .
Front-end Loading evaluation:
Which are the main setup costs including adminstration charges and comissions , They’re usually high in the early years , And thats why you have to find out the past performance of the fund and its charges before you start buying endowment policies .
Checking Endowment Mortgage Fee: If you’re going for endowment mortagage , You have to evaluate the mortage through calculating its fees thoroughly before buying endowment policies,Occasionally the lender can charge more fees for the front loan or processing , So make sure you plan your investment wisely instead of going autopilot .
Options for Endowment Surrendering or Selling :
Instead of surrendering your endowment policy you can just sell it in the TEP market and make a great value out of it , And it’s much better than endowment surrender because it has a better value for both you and the insurance company .
5 Great Tips for buying endowment policies :
*Consult a professional financially as such investment can affect your finance for a long time .
*Study carefully all the details about the insurance company and only start buying when you’re 100 % sure .
*Before signing any agreement or contract make sure you understand every bit of detail.
*Choose the best policy that suits your financial needs , So you can gain the best value & advantages .
*Make sure checking the flexibility plan and every alternative option for protecting yourself if any unwanted change occurs in your finances .
