Know Endowment Life Plans

By | 13/10/2016

If you have a family that depends on your income and you truly care for them a life insurance policy is a must. Your mind is at peace. You have done all you can for your family.

Life does not give you many second chances and certain things need to be done at the right time. Buy an endowment life insurance policy and your family will remember you in this life and the next.

Because they’re worth it

What is an endowment life policy?

An endowment life policy gives you twin benefits

Insurance + Investment

You have to pay a premium to take up an endowment life policy. Your life is insured for a sum of money (sum assured) depending on the premium you pay.

The endowment life policy has a maturity period. You can opt for a maturity period of 10, 20 or even 30 years .In case you (policy holder) survive the term of the policy you get survival benefits. (maturity benefits)

An endowment life policy invests your money in fixed income securities (debt) and also in bonds so that you get fixed returns.

What happens if you survive till the maturity of the endowment life policy?

If you (policy holder) die soon after taking the policy your family gets only the sum assured amounts and no bonuses. If you survive till maturity you get a maturity benefit (sum assured + all bonuses)

This policy pays a higher amount if you (policy holder) survive the term of the policy as you get all the bonuses which only accumulate with time. If an endowment life policy pays you a bonus it is called a with-profit or a participating endowment policy.

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Guaranteed Bonus : The endowment life policy pays a guaranteed bonus (% of the sum assured) for the first 5 years of the policy.

Revisionary Bonus: This bonus is paid for the next 5 years of the policy after you get the guaranteed bonus. This bonus is paid out of the profits of the policy. (If there are profits).If there are no profits there is no revisionary bonus.

Terminal Bonus : This bonus is paid out in the final year of the endowment life policy.

If you survive the term of the endowment life policy (maturity period) you get a sum assured + guaranteed bonus + revisionary bonus (if applicable) + terminal bonus.

For More Information on Endowment Life Plans Click Here

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