An endowment plan is a type of insurance plan that offers life insurance cover as well as long-term savings with assured returns. A lot of policy buyers opt for endowment plans if they wish to save money for their future financial goals.
Endowment Assurance (With or Without Profit)
In “With Profit” endowment assurance policy, the holder is entitled to yearly bonus in addition to the sum assured. The total bonus on the policy is payable at the same time the sum assured is payable.
For “Without Profit” policy, the holder gets only the sum insured.
Anticipated Endowment Policy
Anticipated endowment provides lump sum benefit at certain stages during the premium paying term or on earlier death. On completion of 1/3rd of the policy term, 20% of basic sum assured can be taken by the policy holder. Another 20% of the sum assured can be taken on completion of 2/3rd of the policy term and remaining 60% of basic sum assured plus accrued bonuses shall be payable at the end of the policy term.
Education Endowment Policy
This plan is specially designed for parents who need to accumulate funds for their children’s High school and University College education