An endowment policy is a life insurance policy designed to pay a lump sum after a specified term or on earlier death of the insured. It is a long-term, regular savings plan with built-in life cover. An endowment policy works as an investment tool, benefiting the insured from the addition of bonuses over time.
According to an endowment plan, the policyholder pays regular premiums for the policy term. If the policyholder dies during the policy term, the nominee gets the death benefit - the sum assured and accumulated bonuses up to that point. On survival, the policyholder gets a survival benefit, including bonuses, if any.
An endowment policy typically matures after ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.
Endowment plans are popular as they instill a regular saving habit in people. They ensure a secure present and a more secure future for your dependents irrespective of the fact whether you are living or not.
Life Insurance Corporation of India
Future Generali India Life Insurance Company Limited
MaxLife Insurance Co. Ltd
Tata AIA Life Insurance Company Limited
Reliance Life Insurance Company Limited.