Endowment plans are considered as an insurance policy, providing both insurance cover as well as a savings plan. It will help you to save regularly over a certain time period, so once the policy matures you can get a handsome amount.
Endowment plans types
- Unit linked endowment plan
In this policy, the premium of your insurance will be bifurcated into several units held under a particular investment fund which you can choose as a policyholder.
- Full profit endowment
Under full profit endowment, the policyholder will get the sum assured which is guaranteed right from the beginning of the policy. Though, the final payoff depends on the bonuses announced by the company from time to time.
- Saving Money
This policy carries the best features to help you save money and the policyholder can accrue the funds and they can clear the payment after a specific period and it comes up with the same principle of a mortgage.
- Non-profit endowment
These endowment plans are not attached to the profits or bonuses generated by the company. Now, there is the option to get higher profits, as the companies are coming up with unique options to stay ahead in the competition.
Endowment plan features
Death along with survival benefits
If the insured person passes away, the nominee or beneficiary of the policy will get the sum assured as well as the bonuses. If the insured person outlives the policy, he or she will get the sum assured.
Want to build a great future? The endowment plans are really helpful then. It gives you financial security and you can thus make your family members feel confident. Endowment policy turns out with the death benefit and survival benefits and it brings in the good returns as compared to traditional policies.
Frequency of premium payment
Policyholders are allowed to make premium payment based on the endowment plan he or she has chosen. There are manifold payment options and you can choose monthly quarterly, half-yearly and yearly basis.
A Wide Range of Options.
There is the option to enhance the love cover if you have a permanent disability, any serious illness or it may be applicable for accidental death. Moreover, some plans also offer waiver in the premium on critical disease or permanent disability.
If you get a policy you can eligible for tax exemption, which is applicable for both premium amount and maturity payouts.
Endowment policies are safer than of the other investment option including mutual fund or the ULIP’s, as in Endowment policy, you do not invest directly in the stock market or equity.
Riders under endowment plan
- Critical illness
The policy holder gets a lump sum amount, if he or she is diagnosed with illness such as heart attack, cancer, kidney failure, paralysis etc.
- Unexpected Death
The company pays the compensation for accidental death along with the death benefit and thus you get rid of all the worries.
If the policy holder suffers from permanent or partial disability, this rider becomes very effective.
Benefits of endowment policy
Endowment policies provide insurance cover throughout the term of the policy, offering a lump sum amount after the maturity. Besides, insurance policy endowment plans are also associated with long term investment benefits.