Mat Policy Endowment Annuity

As nouns the difference between endowment and annuity is that endowment is something with which a person or thing is endowed while annuity is a specified income payable at stated intervals for a fixed or a contingent period often for the recipient s life in consideration of a stipulated premium paid either in prior installment payments or in a single payment for example a retirement.

Mat policy endowment annuity.

A 1 the lawful beneficiary assignee or payee including the insured s estate of a life insurance policy or endowment policy shall be entitled to the proceeds and avails of the policy against the creditors and representatives of the insured and of the person effecting the policy or the estate of either and against the heirs and. An endowment is a life insurance policy with cash value and an annuity is a savings vehicle. What seemed a very old age. As annuities evolved so did the guarantees in the contracts.

Scenario 2 endowment insurance as an annuity. If your family needs a specific amount of money by a certain date the endowment pays it whether you live or die. Among those is an end date. John is a doctor and wants to save 400 000 by the time he s 50.

The endowment life insurance policy promises a risk free guaranteed return on a guaranteed date as long as you make the fixed monthly payments. John could save his money through an endowment policy but he could do the same thing with an annuity. Plus he wouldn t have to deal with the insurance expenses of an endowment policy. Even though you have a savings aspect in an endowment policy you also have a death benefit.