Endowment Insurance
Life insurance - investment and care for close relatives!
Insurance of human lives in Europe began centuries ago. Life insurance is completely different from saving by depositing money in a bank, as it is not only an efficient method of investment but also a relief for close relatives in case of death. Life insurance provides full coverage. Upon taking out life insurance a whole sum assured will be paid not only on accidental death but also on death caused by health problems, sudden illnesses, poisoning or natural causes wherever it happens: at work, while travelling or at home. Our life coverage is valid worldwide.
The first life insurance company in Lithuania ERGO Life Insurance SE offers you endowment insurance.
Essentials of endowment insurance
Endowment insurance is an efficient method of investment and a relief for close relatives in case of death. The sum assured will be paid when the policy term expires or if the insured person dies during the endowment period. The total sum assured will only be paid on the insured person's death if at least one premium has already been paid.
Endowment insurance is one of the most popular life insurance products.
- It includes life insurance, as the whole sum assured shall be paid upon death.
- An insured saves at the same time, as premiums are paid periodically and the total accumulated capital will be paid out when the insurance period expires.
The earlier an endowment policy is taken out and the longer its term is, the higher the benefits will be. An individual having taken out endowment insurance knows how much savings he will have; therefore, he can assuredly plan his future and the future of his close relatives.
Insurance options
- Only one life is covered.
- Joint life coverage by the same sum assured for two lives, usually those of spouses. In this case the sum assured will only be paid once upon either of the insured’s death or when the insurance period expires if both insured persons survive it.
Persons eligible for the coverage
Persons from 14 to 64 years of age will be eligible for this type of insurance. Coverage may be provided for individual persons or for groups of persons.
Sum assured and insurance period
The minimum sum assured has been set at EUR 1,500. The minimum length of the insurance period is 3 years. The sum assured and insurance period are to be selected by the policyholder.
The guaranteed sum assured will be increased by contributions from the profits of the insurance company; therefore, when the policy term expires, a much more considerable amount will be paid than it was guaranteed in the policy. Upon the insured person's death, the accumulated share of profits will be paid together with the sum assured.
Premium amounts will depend on the sum assured and the length of the insurance period, the insured person's gender, age, health condition. Premiums can be paid in Litas or in EUR. A policyholder will pay a single premium or annual premiums. Annual premiums may also be paid by instalments.
Advantages of endowment insurance
Flexibility:
- You may appoint and change the beneficiary.
- You may vary premium amounts and the periodicity of premium payments.
- You may transfer or pledge your rights under a policy.
- You may include additional personal accident insurance and additional critical illness insurance in your policy.
- At the end of the policy term you may use the accumulated capital for a life annuity.
Rationality:
- You are protected against possible devaluation of Litas, because pension amounts are fixed in Euros.
- Benefits are increased by contributions from the profits of the insurance company.
- Upon the insured's death, the whole sum assured will be paid together with the accumulated profit.
- Possible financial obligations are covered (e.g., if a loan is taken out).
- Tax allowances provide saving opportunities.
