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5 September 2018
Naturally, as times get tougher, you may end up having to consider cashing in your endowment plan to access the money, or for one of the following reasons:
An endowment policy is essentially an insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time until the plan reaches maturity. An endowment policy can also pay the full sum assured if applicable to the beneficiaries, if the insured dies during the policy term.
If you’re thinking of cashing in your endowment, don't be too hasty, as it may not be in your best interests, due to the following reasons:
Instead of a surrender, there may be other options to you that will better suit your needs and your current circumstances.
Life assurance companies may lend you money in two ways: as partial withdrawals and as interest-bearing loans. Some companies use both methods. However, this will reduce your existing policy value and other benefits.
Once your plan matures, you have the opportunity to continue with the policy and enjoy the above benefits, and the following: