Endowment Plan

An endowment policy is a life insurance plan designed to pay a lumpsum amount to you on completion of a predetermined term or to your beneficiaries on death. So it provides life cover and gives returns on your investment on policy maturity. It is a kind of forced savings and especially attractive for those who want some returns on premiums.

This plan has triple benefits – savings, wealth creation and insurance coverage. It is the right one for any age and income group.

Why do you need it?

  1. It is low risk.

  2. Helps you invest systematically and save regularly.

  3. It is not mere insurance but gives additional plan advantages like double endowment, education endowment and marriage endowment.

  4. Provides financial security for the family in case of your unexpected death.

  5. You can add riders to it, like critical illness, etc.

  6. You can avail of tax benefits on premium under Section 80C and on maturity benefits, death claim and surrender value under Section 10 (10D).

It is ideal for those who…

  1. Want more than just a life coverage and are looking for long-term financial security.

  2. Want to proved financial protection to family.

  3. Want to build a lumpsum amount for future use.

  4. Have a regular source of income.

  5. Are professionals like doctors and lawyers, salaried persons and small businessmen.

  6. Do not mind lower returns against low risks.

When to buy?

The sooner you buy it the lower your premium will be and the more you will get on maturity. But buy only when you are sure you can pay the premiums regularly and for a long time because surrender value is very low.

10 factors that should influence your choice of plan and company:

  • Your life stage

  • Needs

  • Income

  • Risk appetite

  • Premium rates

  • Features and benefits

  • Company’s bonus payment record

  • Company’s claim settlement ratio

  • Company’s customer service record

  • Company’s financial standing