Life Insurance Traded Endowment Policy

life insurance endowment policies

Traded Endowment Policy

(Also called Second Hand Policy)

You buy an endowment life insurance policy taken out by someone else who now wants to cash it in. The person who sells the policy to you gets more money than he or she would if it were cashed with the insurance company. The endowment policy normally has a fixed term remaining of from 10 to 20 years. You take on the commitment to save a fixed amount, usually monthly or yearly, for the rest of the term. In return the life of the person who originally took out the policy is insured for a fixed amount with a non-profit policy. If you buy a with-profits policy, profits called reversionary bonuses are added to the fixed amount. The rate of bonus can rise and fall but once a bonus has been added to a policy, it is guaranteed. The fixed sum insured plus any bonuses, (plus with m... http://motor-insurance.ucoz.com/news/life_insurance_endowment_policies/2013-05-27-2577