Thinking of buying life insurance? Then an endowment policy is a great option. Being one of the most famed life insurance plans, endowment policy caters to an insured person with a special clause which the term life insurance fails to provide.
When you buy a term life insurance, you are not going to get any benefit if you survive even after the maturity of the policy. This way, you lose a great sum of money. On the other hand, an endowment policy comes with an assurance to pay a fixed sum, as per the plan, after the maturity date in case of survival of the insured.
In addition, with an endowment policy, the insured can avail disability benefits as well through waiver of premium rider. It means, if the policyholder is partially or totally disabled due to an illness or sudden accident at any point in time, he/she is not liable to pay the policy premium.
In plain words, endowment policy is moreover a sort of investment or a better way of saving. People use the sum received after the maturity of an endowment policy as pension or to invest further. Whatsoever the purpose, an endowment plan serves you all-inclusively. It is more of coverage cum saving plan.
Given below are some of the key features of an endowment policy?
- It is available in two options – With profit or without profit. The policyholder can choose any option based on his/her need. The profit option pays a bonus along with the assured sum upon maturity of the policy, but the premium is higher than the other one. The without profit option does not pay any bonus.
- You can choose to pay payment of your premium through limited pay option or regular pay option.
- Upon the death of the insured or any sudden disability, the premium is ceased; however the benefits can be availed with the help of waiver of premium rider.
- You can avail a loan against your endowment policy as well.
Risks Covered Under An Endowment Policy
Like any other life insurance, an endowment policy along with the help of applicable riders provides you with the life coverage and additional benefits which includes treatment costs and related expenses such as critical illness and so on. In addition, you will get disability coverage as well, wherein you need not pay the premium, but can enjoy the benefits. For instance, if you are in deep need of cash for any personal emergency, you can take a loan against the policy. This liquidity of the endowment policy is one of the major reasons for its popularity.
Best Endowment Plans Available in India
There are a number of endowment policies available in India with varied benefits.
- LIC New Endowment Policy
There are a number of endowment policies offered by LIC which come with a different set of benefits. The major features of this plan are:
- Assured sum with a minimum value of Rs.1,00,000.
- More than 105% of the total premiums paid as death benefit.
- Riders of Accidental death and disability.
- 8-55 years of entry age.
- Reliance Endowment Plan
Another market leader in endowment policies is Reliance Endowment Plan. Its key features are:
- Facility to avail loan against policy.
- 10-25 year policy term.
- Without profit plan.
- Death benefit equal to the amount which is a 10-time multiplier of the annual premium paid.
- 5-50 entry age limit.
- Various premium paying modes
- Minimum of Rs. 65,261 assured sums.
- Free-look period of 15 days to have a better understanding of the plan.
- Kotak Premier Endowment Plan
As it comes with regular and limited premium pad limit, the plan is best suited for middle to upper-middle class. Its key features can be stated as:
- Non-linked endowment insurance plan.
- Minimum of INR 63,755 assured sum.
- Benefits of various bonus like Simple Reversionary Bonus, and Interim Bonus.
- Guaranteed surrender value.
- Upon online purchase, 30 days free look period.
- SBI Life Endowment Policy
Offered by largest public sector bank in India, this plan comes with comprehensive features like:
- 18-50/58/60 years of entry age limit
- 5-30 year policy term.
- Minimum of Rs. 75,000 assured sum.
- No limit for the maximum sum.
- Various premium paying modes.
- Bajaj Allianz Save Assure Endowment Policy
With a minimum of Rs.1,00,000 assured sums, this plan is a must have for long-term saving goals.
- 1-60 year entry age limit.
- 15-17 year policy term.