Things You Should Know Before Purchasing an Endowment Plan

An endowment policy is an insurance plan that provides guaranteed benefits in the form of the total sum assured with many other bonuses to its policyholders when it matures or if the policyholder dies during the policy term. Endowment plans are a type of insurance instrument wherein added advantages of savings are provided to the investor. In this way, an endowment plan not only offers the benefit of sum assured to the nominee when the policyholder dies before the policy matures and as well offers the policyholder to get the benefits of maturity bonuses when he/she survives the term of the policy.

Read more
investent plan
Plans starting from ₹1000/month
tata aia life insurance
loading...
Bajaj Allianz
loading...
hdfc life insurance
loading...
Best Investment Plans
  • money
    Generate wealth with high returns Earn 1 Cr in maturity with Zero LTCG tax
  • tax
    Double tax savings On premiums (under 80C) and on maturity (under 10(10D))^
  • compare
    Compare & choose the best 30+ Plans and 150+ Fund options
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Why we need your mobile number?
We need it to confirm more details about you and advise accordingly. Our licensed experts work for you, not the insurance companies, so their advice is entirely unbiased
— No sales pitches here

Most of the endowment plans come with two options – 'with profit' and 'without profit'. An endowment plan that is profit-oriented comes with many terminal and revisionary advantages that add to the actual sum assured on the plan's maturity and hence provide add-on fund benefits. A non-profit oriented endowment plan does not provide such benefits and hence can be considered as a traditional plan of life insurance. On the other hand, an endowment plan offers lump-sum pay-out and hence encompasses the maturity benefits and benefits of the main plan, which is the sum assured. This means that the policyholder can get the pay-out upon maturity of the plan and as well provides the option to further investment of the funds as and when needed.

So, one can purchase an endowment plan as per his/her requirements and according to his/her financial goals and there are no pre-fixed or rigid rules related to the term of the policy.

One should know the below five things before buying an endowment plan:

  • Death Benefits along with Survival Benefits: The best part about endowment plans is that they provide maturity or survival benefits when the policyholder outlives the term of the policy. However, if he/she dies within the policy term, then death benefits are also given to the nominee of the policyholder. In this way, these plans offer the dual benefit of death and survival both.
  • Frequency of Premium Payment: Most of the time the insurance providers offer flexible terms of premium payment. This means that a policyholder has the convenience of selecting the premium payment frequency. This frequency can be bi-annually, annually, monthly, or one-time payment.
  • High Returns: The bonus feature means that the returns of an endowment policy are higher than its traditional counterparts, which are life insurance plans (traditional) or term insurance plans. With regular sum assured, there are additional payable amounts that are combined with it and therefore, the benefits of this plan are high.
  • The benefit of Income Tax: An endowment plan provides tax benefits because the premium that is paid and the benefits of the main plan (sum assured as well as maturity proceeds) are all eligible for tax-exemptions u/s 80C and 10D of the Income Tax Act, 1961.
  • Cover Flexibility: An endowment policy provides the advantage of flexible coverage and the insured can select to buy additional benefits as rider benefits such as total or partial disability rider, accidental death rider, critical illness rider, etc. The add-ons or riders impact the payable premiums, however, the coverage scope becomes flexible with this feature.

Final Words: These are the top five things that one should know before purchasing any endowment plan. Most investment plans that come under the endowment category offer extensive financial coverage and ensure that there are economical terms and conditions applied for the coverage they offer. So, if you want to purchase a term plan with maturity benefits, opting for an endowment policy is recommended.

Past 10 Year annualised returns as on 01-12-2023

^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Become a crorepati-1
Invest More Get More!
You Get
₹1 Crores*
You Invest
₹10K/month
You Get
₹80 Lakhs*
You Invest
₹8K/month
You Get
₹50 Lakhs*
You Invest
₹5K/month
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
How Thanks giving and Black Friday Affect The Indian Stock Market?

23 Nov 2023

Black Friday and Thanksgiving mark the beginning of the holiday
Read more
Axis Bank NRI Account

11 Oct 2023

The Axis Bank NRI Account is a gateway to seamless banking
Read more
ICICI Bank NRI Account

09 Oct 2023

The ICICI NRI Account is a specialized banking solution designed
Read more
Long- Term Income Plans

11 Sep 2023

Long-Term Income Plans are strategic financial products that
Read more
Max Life Capital Guarantee Solution

28 Aug 2023

Capital Guarantee Solution Plan offered by Max Life insurance, a
Read more
Best NRE Savings Accounts for NRIs in 2023
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily
Read more
10 Disadvantages of Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a popular investment option, introduced by the Indian Government in
Read more
Ways to Double Your invested Money
One of the main reasons we invest money is to save it and watch it grow. However, with low interest rates from
Read more
How to Change Mobile Number in Post Office Account Online?
Indian Post Payment Bank (IPPB) is the banking division of the Department of Post (Ministry of Communications)
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL