KCLau's Money Tips Forum

[mooi]

I am a little confused with endowment and term life insurance. Could someone briefly explain what are their differences? It seems to me that both types of policy involved paying premiums for a specific amount of time but I am not sure whether endowment involves investment while term insurance doesn't? Thanks!

[KCLau]

Term insurance
- this is a fixed term insurance .. say 20 yrs, 25 yrs etc
- it gives protection, but no investment, no cash value at maturity
- high protection, low saving.

Endowment insurance
- this is also a fixed term insurance - 18 yrs, 30 yrs etc
- it gives minimum protection, but higher cash value and savings
- this is more for retirement saving or education fund saving.
- at maturity you get a maturity value normally more than the money you put in

[clloketip]

You are right...

[princyjoshu]

thanks for postings

Health Insurance tx