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Unit Linked Endowment - Under this plan, the insurance premiums are directed into multiple units held under a specific investment fund. The investment fund can be chosen by the policyholders.
Full Endowment – Under this scheme, the minimum amount ensured is equal to the death benefit and is calculated from the start of the policy. Depending on the speculated market-based appreciation, the final pay-out provided could be relatively higher.
Low-Cost Endowment – This endowment plan comes with the intention of allowing individuals to accumulate the funds which have to be paid after a specified time period, generally mortgage.
Key Features and Benefits of Endowment Plans Some of the key features of endowment plans include:
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Endowment policies usually come ‘With Profit’ and also ‘Without Profit’, depending on the requirements of the investor.
Under Endowment plans, the bonus for full-term is payable on the date of maturity or in the event of death, whichever is earlier.
Premiums for endowment policies can be limited to shorter-term or can be paid as a single premium.
Sum assured is payable either on survival to the term or on death occurring within the term.
Premiums cease on death or on expiry of the term, whichever is earlier.
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Provides insurance cover during the policy term.
Investors can get a sizeable lump sum amount at the end of the policy term i.e. once the policy has matured.
An endowment policy works to serve a dual purpose. It acts as an insurance policy and also serves as a long-term investment offering decent returns.
Endowment policies usually come with tax benefits.
From an investment perspective, endowment policies are relatively safer as compared to other types of investments and offer returns which are close to those offered by mutual funds.
Endowment policies enable long-term savings.
Under endowment policies, investors can be assured of receiving a considerable amount upon maturity.
Most will extend insurance coverage and the promise of benefits even after the maturity date, in some cases up to a time when the life insured attains the age of 100.
Policyholders have the options of opting for additional riders which provide cover for specific illnesses, critical illnesses, disabilities, etc.
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Advance Planning: Investments must always be well planned and in advance, as this allows for your investment to grow in the long horizon. This, in turn, will help the insured to build a corpus and facilitate disciplined saving.
Plan with Riders: There are many insurance companies which offer riders as an inbuilt feature and one must never miss out on it. Additional benefits would include benefits such as education endowment, double endowment policy or a marriage endowment policy.
Flexibility Option: Endowment plans provide flexible options. In case an individual is salaried, she/he can choose a regular endowment policy whereas an individual with irregular income may opt for a single payment option or limited premium payment option.
Guaranteed and Non-Guaranteed returns: Apart from offering low-risk insurance and dual benefit of death cover and saving feature, many of these policies also offer a combination of guaranteed and non-guaranteed. The guaranteed returns such as guaranteed additions remain fixed and are payable on death or maturity (as applicable). The non-guaranteed returns include bonuses that are variable in nature and it depends on the investment performance.
Bonuses: Bonuses are declared by the insurance company depending on how the company has performed. When the insurer has made profits from its investments, he distributes a part to it to policyholders at the end of each financial year. Besides, the profit of the insurance company depends on the valuation of its assets and liabilities.
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Fully filled Application form/Proposal form.
Photograph.
Proof of residence/address proof.
Proof of age.
Medical reports (only if required).
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HDFC Life Sampoorn Samridhi Plus
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POLICY NAME - HDFC Life Sampoorn Samridhi Plus
ENTRY AGE - 30 days to 60 years
MATURITY AGE- 18 to 75 years
POLICY TERM - 15 to 40 years
PREMIUM PAYMENT OPTION - Limited Pay: monthly, quarterly, semi-annually or annually
SUM ASSURED (MINIMUM) - Rs. 65,463
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - 5 years less than policy tenure
LIC New Endowment Plan
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POLICY NAME - LIC New Endowment policy
ENTRY AGE - 8-55 years
MATURITY AGE - up to 75 years
POLICY TERM - 12-35 years
PREMIUM PAYMENT OPTION - yearly, half-yearly, quarterly, monthly
SUM ASSURED (MINIMUM) - Rs. 1,00,000
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - Throughout the policy period
Kotak Classic Endowment Policy
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POLICY NAME - Kotak Classic Endowment Policy
ENTRY AGE - 0 to 55 years for Regular Pay 0 to 60 years for Limited Pay
MATURITY AGE - 18 to 75 years
POLICY TERM - 15 to 30 years
PREMIUM PAYMENT OPTION - Regular and Limited: monthly, quarterly, semi-annually or annually
SUM ASSURED (MINIMUM) - It usually depends on the policy period and premium
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - Regular Pay throughout the policy duration for and as per the chosen period for Limited Pay
PNB MetLife Endowment Savings Plan Plus
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POLICY NAME - MetLife Endowment Savings Plan Plus
ENTRY AGE - 18 to 50 years for Regular Pay annual premium payment. 18 to 45 years for Regular Pay monthly/semi-annual premium payment. 18 to 55 years for Limited Pay annual premium payment. 18 to 50 years for Limited Pay monthly/semi-annual premium payment.
MATURITY AGE - 65 years for Regular Pay 80 years for Limited Pay
POLICY TERM - Regular Pay: 10 to 15 years Limited Pay: 10 to 25 years
PREMIUM PAYMENT OPTION - Regular and Limited: monthly, semi-annually or annually
SUM ASSURED (MINIMUM) - Rs. 2,20,000
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - Regular or Limited Pay for 5 years, 7 years or 10 years
Reliance Nippon Life Super Endowment Plan
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POLICY NAME - Reliance Nippon Life Super Endowment Plan
ENTRY AGE - 8 to 60 years
MATURITY AGE - 22 to 75 years
POLICY TERM - 14 and 20 years
PREMIUM PAYMENT OPTION - Monthly, quarterly, semi-annually or annually
SUM ASSURED (MINIMUM) - Rs. 1 lakh
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - Half of the policy term
Bajaj Allianz Save Assure Plan
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POLICY NAME - Bajaj Allianz Save Assure Plan
ENTRY AGE - 1 to 60 years
MATURITY AGE - 18 to 75 years
POLICY TERM - 15 or 17 years
PREMIUM PAYMENT OPTION - Monthly, quarterly, semi-annually or annually
SUM ASSURED (MINIMUM) - Rs.1 lakh
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - 5 years less than the policy tenure
SBI Life Smart Bachat
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POLICY NAME - SBI Life Smart Bachat
ENTRY AGE - 8 to 50 years
MATURITY AGE - Up to 65 years
POLICY TERM - 10 to 25 years
PREMIUM PAYMENT OPTION - Monthly, quarterly, semi-annually or annually
SUM ASSURED (MINIMUM) - Rs. 1 lakh
SUM ASSURED (MAXIMUM) - Unlimited
PREMIUM PAYING TERM - 5 to 15 years
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Do endowment policies offer any tax benefit?