One of the best things that we can do in our life is to invest in our health. We may feel young and healthy today, but we cannot deny the fact that our bodies will eventually slow down in the future. It may be prone to sickness and not perform the way it used to. This leads to unwanted expenditures such as hospital and medication bills that could deplete our finances. The best way to make sure that you are financially set once this time comes is by investing in endowment insurance. If you want to be informed about this particular type of investment, read along to know more on endowment insurance in Malaysia:
What is Endowment Insurance?
By definition, endowment insurance is a life insurance contract made to pay the insured a lump sum after the maturity time or on the time of his or her death. In short, endowment insurance is a time-locked investment that you buy from an insurance company. The lump sum stated in the contract will be given to the intended beneficiaries. If the policyholder outlives the maturity period, the endowment will be given to him or her.
Endowment insurance is a combination of both investment and life insurance. The longer the maturity period, the less expensive your monthly premium becomes. Unlike other insurances, there is no prerequisite for getting endowment insurance. You don’t even need to get a medical exam in order to qualify. As a matter of fact, any person is qualified to get it, as long as he or she can pay the monthly premium.
What are the Benefits of Buying Endowment Insurance?
The money that the insured paid for his or her endowment insurance can be taken out and used upon maturity. Endowment policies mature after a certain period of time – usually between 5, 10, 15 or 20 years. If you are planning to save money for your kid’s college or set up a business in the future, investing in endowment insurance can help you to save up for it.
Endowment insurances carry fewer risks as compared to other investment types. The money that you paid quickly accumulates. Over time, your money will earn more interest. You can claim the lump sum indicated in your insurance policy after the maturity period that you chose.
What is the Difference Between Endowment and Medical Insurances?
Medical insurances, unlike endowment insurance, can only be used during hospital-related and other medical expenses. You cannot use medical insurance to fund your business or send your children to college in the future. Additionally, some types of medical insurances do not return the premium paid.
Putting your money on the right investment can help you when you need it most. You will have peace of mind knowing that you will have something to rely on financially, in case medical emergencies happen. If you want to have a secured financial future for yourself and your family, choosing endowment insurance is one of the best ways to go.