Every endowment policy is a life assurance proposal for an agreed amount after the completion of term or on the death of the insured. Meanwhile, a customer will have a chance to cash the policy through endowment surrender. In this procedure the endowment surrender value will be decided by the insurance companies and the policy should be reached to with-profit status for this procedure. Generally the value redeemed will be always less than the agreed sum of the policy. But, an individual can get more cash through endowment selling rather than this surrender. The premium paid by the customer is invested in the stock market in the endowment policy. The endowment surrender value will be calculated with the help of ‘Market Value adjuster’ while the endowment surrender is initiated. Also, expected bonuses are not favored for an individual that is interested in surrendering the life insurance policy. For every policy bonuses are generated according to a definite proportion of the agreed sum and basing the invested market.
Endowment selling and surrender will completely rules out the chances of bonuses for an individual. In fact, these bonuses are the best assortment for every individual and quite lucrative too. This bonus is announced every year. The invested premium produces a return every year and this return is attributed as bonus for an individual. If this investment is connected with mutual fund dividend or a stock dividend, then it should be paid immediately. Actually this bonus is always affirmed build up and it is the reason it will be paid up on the maturity of the policy. Always this bonus accumulates for an individual until the policy is matured.
Every time the endowment surrender will lead to more financial loss for an individual through losing bonus and through less endowment surrender value. This is the reason people are suggested to plan for endowment policy if there is a chance to continue this to the stipulated period or agreed term. This kind of ability can create a chance to use this as endowment mortgage for an individual. Endowment mortgage is always a best way to make maximum use of this policy for an individual.