An Endowment policy is a life insurance policy which provides dual benefits – Insurance Cover and Regular Savings. The policyholder gets his/her sum assured along with the Bonus (if any) on a fixed date in future as per the policy terms and conditions. However, in case of sudden death of the policyholder, the insurance company will pay the sum assured (plus the bonus, if any) to the nominee of the policy. Besides, it is also useful to secure yourself or your family post-retirement or to meet various financial needs such as funding for children’s education and/or marriage or buying a house.

Why Endowment Plan is essential?

• Insurance Cover: Financial stability during your twilight years and financial stability to your family in case of your unfortunate demise during the policy term.
• Low Risk: Traditional Endowment policies are considered safer as compared to the other investment option such as the Mutual Fund or the ULIP’s because the amount here is not directly invested in equity funds or the stock market.

Features of Endowment Policy

• Provides a mix of Survival / Maturity OR Death Benefit. In some cases, the insurance cover continues even after the end of policy term.
• An endowment policy is helpful in building a corpus for future and providing financial protection to your family. The pay-out for survival benefit and death benefit of an endowment plan is higher than that of Term Insurance Plans.

• With Endowment policies, you get an option to enhance your policy by opting for additional riders like critical illnesses, waiver of premium, family income benefit, accidental death benefit, and accidental permanent total / partial disability benefit.
• An endowment policy serves you multiple purpose as it not only works as an insurance policy but also offers you with long term savings benefit and also tax exemption on premium payments as well as on Maturity / Survival and Death claim pay outs. These exemptions are available under Section 80 C and Section 10(10D) of the Income Tax Act, 1961.

• Endowment Policies have an added feature of Final Additional Bonus along with the yearly Bonus declared by the insurance companies. The bonus amount is paid to the policy holder along with the Sum Assured on maturity OR to the family members in the event of the unfortunate death of the policy holder.

^{*Subject to change depending upon Government policies.}