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 Posted: Tue Jun 17, 2008 5:39 pm Post subject: Endowment insurance - Do you get a good return on maturity? |
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I have seen many types of life insurance in this community including those that I have not heard of before. But I think no one has talked about life endowment insurance. Are you also selling endowment insurance plans? What is much easier to sell? Endowment life insurance or a permanent life insurance? Endowment plans are insurance plans that pay lump some on a specific time of maturity. This can be a good way to save money. What do you think?
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joven222
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| Posted: Mon Jun 23, 2008 9:01 am Post subject: |
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I agree with you joven. An endowment insurance plan is a very good option to build a saving, especially, for people with limited fund to invest in the market. Also, it offers protection to people who are in dire need of protecting their dependents after their death.
IMO the agents should also concentrate in promoting this form of policies, as it may successfully cater to the insurance needs of the middle level income people.
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alaska_usher
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| Posted: Mon Jun 23, 2008 9:20 am Post subject: |
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Endowment insurance plans definitely are better than other forms of traditional life plans like- the term life plan, which is only good in some special cases. The endowment plan is the actual life insurance plan, that offers insurance coverage to the policy holder. The policy holder receives a certain amount as maturity value at the end of the policy term, if he survives through its tenure. Otherwise, the beneficiary receives the death benefit along with the return on the policy.
With the development of the unit linked plans, an endowment plan's popularity has certainly diminished, as more importance is given to the returns earned by the policy and less concentrations on life coverage, but its demand certainly exists.
However, I can only share my opinion from a customer's point of view, but would certainly love to hear what the expert agents have to say in this matter.
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hitchhiker
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| Posted: Mon Jun 23, 2008 10:38 am Post subject: |
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I guess agents prefer to sell term life policies as it costs less to the customer, hence easier to pitch. People who can't afford the cost of insurance but still wants to purchase some coverages, are the easy customers for term life.
On the other hand, endowment and whole life both are bit more expensive than the term life plans. Hence, out of the reach of the limited income people.
However, from a customer's point of view, I'd rather vote for an endowment plan over the other forms of life policies. The endowment plan offers you a maturity value. So, you can actually reap the fruit of your savings, which IMO is the greatest advantage of an endowment plan.
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Keith_the_handsome
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| Posted: Mon Jun 23, 2008 10:54 am Post subject: insurance |
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| Life Insurance is so important, ....reguardless of 'income status'. I've spoken to different insurance companies, whom I have discussed different Life Insurance plans. I think the thing that 'gets me', however, is when the insurance companies talk to you about your options and what options have what benefits,THEN you decide on which Life Insurance plan you want to take, they say, "well..don't you think it's more 'practical' for you to take THIS one instead of THAT one." ( Speaking toward the PRICE of the insurance policy). Shouldn't the decsion be up to ME, what benefits I choose to buy, instead of the insurance company looking at what "might be best for me" because of my income? If I COULDN'T afford certain plans, i wouldn't be looking at them. |
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sdchargersfan
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| Posted: Mon Jun 23, 2008 10:31 pm Post subject: |
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A quick review of the Life Insurance Guides section will show why endowments are not a very good deal (in America). Tax reform and investment legislation has all but completely stripped the benefits of owning an endowment.
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InsInvestigator
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| Posted: Tue Jun 24, 2008 10:59 am Post subject: insurance |
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| I haven't had a chance to go to your website, INVESTIGATOR..but, I soon will. |
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sdchargersfan
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| Posted: Tue Jun 24, 2008 3:58 pm Post subject: |
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You don't need to go to my website, just scroll upwards, select "Guides" and go to the Life Insurance section. It's all right there.
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InsInvestigator
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| Posted: Wed Jun 25, 2008 8:55 am Post subject: insurance |
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| I sure will do that. Thanks for the advice. |
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sdchargersfan
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| Posted: Fri Jul 11, 2008 5:32 pm Post subject: |
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| Quote: | A quick review of the Life Insurance Guides section will show why endowments are not a very good deal (in America). Tax reform and investment legislation has all but completely stripped the benefits of owning an endowment.
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Thanks for this idea. Now I know why there are no people talking about endowment life insurance.
Here is the link to what InsInvestigator wants to tell us. http://www.ampminsure.org/insinvestigator/endowment.html
| Quote: | | Endowments are generally not sold today due to the tax changes enacted in the 1980s that eliminated many of the benefits that once made them so attractive as investment vehicles. |
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joven222
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| Posted: Sun Jul 20, 2008 1:27 am Post subject: |
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I think endowment insurance plans are offered by very few insurers now. I can't recall seeing any in Canada sold since I have been in the business (abouty ten years),
I served some clients who had endowments and they were disappointed with the results. the face value looked big 40 years prior when they bought it but the endowment now is paltry. Others wished they could keep it as insurance but had to take the money.
An endowment can be acheived through a well designed UL policy. Sometimes it can be arranged to borrow money from a bank against the death benefit. The tax treatment can be quite favorable doing this. It requires careful planning to acheive the desired result.
Anyhow, endowments are okay in my opinion. But the industry is shying away from the traditional plans like this.
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OntarioBroker
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| Posted: Tue Aug 05, 2008 4:02 pm Post subject: |
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Thanks for the tips. I am planning to get an endowment plan after I have paid my other life insurance policy. I have only 1 year left. I will think about it if I would get an endowment plan or just a plain life insurance protection..
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joven222
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| Posted: Wed Aug 06, 2008 3:08 am Post subject: |
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| Quote: | | What is much easier to sell? Endowment life insurance or a permanent life insurance? |
Just a comment on this quote from the original post: it really shouldn't matter what is easier to sell! What matters is what fits the need best.
Joven, what need are you trying to fill with an endowment? As InsuranceInvestigator stated they are declining in popularity due to changes in legislation.
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OntarioBroker
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| Posted: Sat Aug 23, 2008 4:53 pm Post subject: |
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Hi Ontario Broker,
Thanks for reminding me.
| Quote: | | it really shouldn't matter what is easier to sell! What matters is what fits the need best. |
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Yeah, I guess I first need to qualify my need before getting a new policy. Thanks guys.
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joven222
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| Posted: Tue Aug 26, 2008 5:26 am Post subject: |
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Endowment insurance was popular in the past due to its substantial savings elements.
In addition to that, people back then (60s or 70s) did not have much knowledge about ways how to invest their money. Therefore endowment was attractive because of its return.
With the introduction of unit-linked products and more people become savvy about investment, endowment has lost its popularity.
Endowment insurance may still appeal to people who are conservative and careful with their money or who are not comfortable to place their money in stock market through the purchase of unit-linked products.
Essentially I am still of the opinion, protection comes first before investment or savings. From the financial planning point of view, we need to first address the needs of income protection only then we focus on wealth accumulation
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