Endowments are investment-oriented policies that combine life insurance with an annuity. Endowments can either pay upon the death of the insured or at a specified maturation date. Endowments can be more expensive than whole life insurance policies and you must pay the premiums for a specified period of time. Endowment policies are taxed more like investments than regular insurance policies so make sure you understand the tax implications before you purchase an endowment policy. The policy's cash value may be taxed when the policy matures. Consult an insurance agent in your area for more information about endowment policies.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
