Page 9 - Life Assurance

imited-Term Endowment Contract:

Limited-term endowment contracts extend
for a given period of years, usually 5, 10, 15 or
20 years. A very common period is 20 years.

Endowments are commonly used as
savings for some specified purpose, such as for
educational purposes retirement, or travel
funds.

In this way, if the saver dies before the period
has expired, the purpose for which the savings plan
was set up can often be accomplished by the
insured dependents.

- Retirement Income Policy:

Retirement Income Policies are similar to
endowments except that the former are arranged
so that their cash values amount to a sum
sufficient to provide a month life income at
retirement age for each unit of money of the face
amount.

Endowments are purchased for varying
periods, such as a 10-year endowment, 20-year
endowment, 30-year endowment, till reaching
the age of 65. They mature for their face value at
the end of that term.

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