Endowment policies are a good way to invest in your future as you can buy one that gives you a percentage back after 5 years, 10 years or more and you can also get one with a lumpsum of cash. Ask a broker to find a good one for you as they do give you a good income boost when you least expect it.
I've been offered an endowment plan just recently where I will pay on a one time payment term and I would be able to receive the stated interest after 5 years and it will be on a twice a year basis and when I finish receiving the interest of my money, I will then receive the lump sum equal to what I have paid for. So you put your money with the company, wait for 5 years for interests to accumulate, receive the interests first then get back the money you have invested. It's a good deal.
I don't know anything about this. Can you explain more about how it works? I have never heard of anything like this. It sounds like a life insurance policy of sorts. I will have to google it. It sounds like something that may have some potential as an investment. I will do some research on it. I am being offered life insurance policies all the time.
A good way to increase your money if you have time and do not need the money is to roll the interest back into the endowment. You should have a choice of receiving the money of letting the interest ride.
I have never heard of this type of investing either but it sounds promising. I am not sure if I want to wait 5 years for the money though but I can understand that this would be for future pay. Is there a certain amount that you have to invest or have in the account? I do not have extra money to do anything like this right now but maybe in the future. Thanks for sharing this information.
I have a life insurance that I pay premium for 10 years. It looks to be a good one and sold by a friend. This morning, my husband was driving me to the office and we were talking of what I would do when I retire 7 years from now. I mentioned that life insurance that I want to be an agent like my friend who sold me that. It is a good occupation for a retiree since it has no capital, I will be occupied and at the same time earn money.
you can buy them through a broker and choose to pay for one in full or have money deducted out of your account monthly. It is also a great way to avoid tax when you receive a lumpsum of money and instead of putting it into the bank you can load it into your policy. I am not too sure about how it works completely as I have just recently bought one. But friends of mine say that it is a good idea and they receive money when they need it.
Endowment policies have a unique feature in that you choose how much you want to save monthly. Based on your monthly contributions, you are guaranteed a certain payout when policy matures. The endowment insurance policy does not have an investment risk or interest rate risk. You also don't need a medical exam to qualify unlike other life insurance policies.
Endowment insurance makes for an alternative pension plan. I think this is the kind of insurance policy I have although it's still under the category of life insurance. I will be paid back the exact amount I invested in 10 years' time as soon as my plan matures. However, my coverage - including an expanded one that will cover my spouse and every child added to our family - will continue. I also have the option to extend my endowment after 10 years.
Endowment plans were very popular in earlier times, However, after a while interest in these plans gradually diminished because there were plans that were developed which were more attractive to insurance subscribers than the endowment plans were. I didn't know that these plans were still being offered.
Most endowment polices I've seen really seemed like scams. But, I guess it's good some people out there. Don't think it's right for me though.
I've been offered endowment plans but like what @explorerx7 had mentioned, the interest had diminished significantly over the years that I had to think really hard if it's worth not having control over your own money all those years that you're waiting for your plan to mature. It's a good plan to have if you actually have money to spare and would not want to sweat it out on other stable and conservative investment options like government treasury bonds but if you want more for your money, there are better options elsewhere.
