Equivalent of endowment policy - urgent

[lex]

What is the name of your state? Delaware

Hi,

I was wondering if someone can tell me what the US equivalent of an endowment policy is? That seems to be a more British term. It's a life insurance policy for a certain term (24 years in this case), the premiums stay the same, it accumulates cash value and there are maturity payments due after 8 yrs, 16 yrs and the end of the term.

Also,the total of premiums paid after 13 years exceeded the face amount of the policy! Is that appropriate under the law? The policy was transferred from another country.

Thanks in advance.

 

[seniorjudge]

What is the name of your state? Delaware

Hi,

I was wondering if someone can tell me what the US equivalent of an endowment policy is? That seems to be a more British term. It's a life insurance policy for a certain term (24 years in this case), the premiums stay the same, it accumulates cash value and there are maturity payments due after 8 yrs, 16 yrs and the end of the term.

Also,the total of premiums paid after 13 years exceeded the face amount of the policy! Is that appropriate under the law? The policy was transferred from another country.

Thanks in advance.

Q: Is that appropriate under the law?

A: What are you talking about?

 

[lex]

I'll clarify my question. The same premiums have to be paid annually for 24 years but the dollar amount paid in premiums exceeded the face amount of the policy after 13 years. That seems absurd to me - seems to defeat the purpose - I guess I'm asking if it's legal.

The policy was purchased in a developing country where insurance is much more expensive (higher mortality rates, smaller population, fewer people can afford insurance).

 

[seniorjudge]

I'll clarify my question. The same premiums have to be paid annually for 24 years but the dollar amount paid in premiums exceeded the face amount of the policy after 13 years. That seems absurd to me - seems to defeat the purpose - I guess I'm asking if it's legal.

The policy was purchased in a developing country where insurance is much more expensive (higher mortality rates, smaller population, fewer people can afford insurance).

US law only.

 

[lex]

Yes, I know it's US law only. I had mentioned in my earlier post that the policy was transferred from another country to the US.

It was bought from an American insurance company that has offices globally and later transferred to and administered from the States so I believe US law applies.

 

[seniorjudge]

Yes, I know it's US law only. I had mentioned in my earlier post that the policy was transferred from another country to the US.

It was bought from an American insurance company that has offices globally and later transferred to and administered from the States so I believe US law applies.

Okay, then call the insurance bureaucrats in whatever state this is in and ask them.

 

[lex]

That's going to be my next step. I had looked up the contact info earlier today. Should be interesting because this might have affected many people.

Thanks for responding senior judge.

 

[Betty]

Endowment policies are normally paid at death of insured or on a specified maturity date if the insured is still living. Premiums are generally paid from the date of issue to maturity. (when cash value equals policy's face amount) You will need to check with your ins. co. to verify the terms/provisions of your specific policy.

 

[lex]

Thanks Betty. I'm going to run it by the Dept. of Insurance. When premiums exceed the face amount of the policy even with 8 more years left to pay them, that seems ludicrous.

 

[Dandy Don]

In addition, do your own research by going to a search engine (google.com, yahoo.com, etc.) and entering the phrase "endowment policy" and then study the links that come up.

 

[lex]

Thanks Dandy Don - just saw your response.

I've done a fair amount of internet research already but I think it's a good idea for me to do even more.