Some Salient Features Of An Endowment Plans
Published On Aug 21, 2021 10:00 AM By Shrida Gulati
Table of Contents
Endowment policies are a unique combination of insurance coverage and investment opportunity. These types of plan provide a death benefit in case of an unforeseen demise of the life assured during the policy tenure and this plan also provides a maturity benefit in case the life assured survives the entire policy term. Endowment plans allow wealth appreciation as this plan is participating which means this plan participates in the profit of the insurance company as per their performance in the market. Annual bonuses are declared upon the endowment policy as per the performance of the insurance provider in the market.
Some Salient Features Of An Endowment Policy
Below mentioned are some salient features of an endowment policy:
1. Dual Purpose
Endowment policies are a unique combination of insurance coverage and investment opportunity. Under these plans a life assured can avail dual benefits of life insurance cover and gets the opportunity to invest for a brighter future. The life assured can ensure financial security for yourself and your family, and grow your corpus to fulfil your future financial expenses.
2. Death Benefit
Endowment plans are a type of a life insurance policy. This plan provides a death benefit to the nominee, in case of an unforeseen demise of the life assured during the policy tenure. This plan helps the life assured to ensure that his/her family has adequate financial resources to maintain a healthy lifestyle, fulfil their immediate financial requirements and pursue their dreams even when the life assured is not around.
Also read - What Are The Best Suitable Rider For Endowment Policy?
3. Maturity Benefit
Endowment policies provide a maturity benefit to the life assured at the end of the policy term. In case the life assured survives the entire policy term, he/she will be provided with a maturity benefit at the end of the policy term. This feature of an endowment policy lets the life assured to fulfil his/her financial goals. This encourages a disciplined saving habit for a life assured.
4. Guaranteed Additions
Endowment plans are participating life insurance plans. Bonuses are declared upon an endowment policy at the end of each policy year. These guaranteed additions are provided along the death benefit or maturity benefit at the end of the policy term.
Endowment policies offer life cover and investment opportunity at the same time. These types of life insurance plans provide maturity benefits at the end of the policy term in case the life assured is able to survive the entire policy term. Endowment policies help the life assured ensure financial security of their family. These plans allow wealth appreciation by participating in profits of the insurance company. The life assured can also avail tax benefit under endowment plan under section Section 80C and 10(10D) of the Income Tax Act, 1961.
You may also like to read - Eligibility Criteria For Purchasing A Endowment Plan
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.