Companies that offer life insurance plans with endowment savings, as of 2016, include the Gerber Life Insurance Company and Voya Financial Services. Gerber offers the Gerber Life College Plan, which combines adult life insurance with a college savings plan, according to the company. Voya offers the Sure Voya ROP Endowment Term policy, which returns all premiums paid at the end of the contract to policyholders who outlive the term of the policy, the company states.Continue Reading
According to FindmyInsurer.org, as a service of the Center for Insurance Research, an endowment policy is a life insurance contract that pays out upon the death of the insured or after a specified term, whichever comes first. Endowment policies are different than regular term policies because they contain the guaranteed pay out feature even when the policyholder does not die; however, they are more expensive than regular term life policies, according to Smart Asset.
Endowments, or the savings portion of the plan, can be used for anything, although they are often marketed as college savings plans, says Smart Asset. Endowment policies are usually safe investments, but they offer low rates of return. The endowment policy is not counted as an asset for college financial aid purposes, but Investopedia advises that other college savings vehicles such as 529 savings or prepaid tuition plans are preferable.Learn more about Insurance