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Top 5 Benefits Of Buying Endowment Insurance Plans

Published On Jul 04, 2021

Endowment plan offers numerous benefits to push it forward as an endgame. These plans, among all things, have secured a place among risk-averse investors by inculcating saving habits along with an insurance cover as a backup. 

In this article, we have detailed the top 5 benefits that make endowment plans beneficial for investors of a wide range.

Top 5 Benefits Of Buying Endowment Insurance Plans

Following are the key reasons that cast endowment plans as a profitable option

  • Low Risk Plans

Endowment plans are branded as low risk plans in the market and are suitable for investors with a low risk appetite. These plans do not function within the high risk market environment and promise guaranteed payouts. It makes the plan all encompassing by giving an opportunity to the investor who do not enjoy the market thrill. 

  • Guaranteed Annual Additions

The plan provides you with additional boosters in the form of guaranteed additions which are payable at maturity or death. 

It boosts your savings by guaranteeing an annual addition of a certain percentage of the Sum Assured during the Premium Payment Term. This is an extremely beneficial feature as the premiums are compounded at the end of policy term to provide a higher sum assured.

  • Loan Against Policy

To meet financial contingency, endowment plans allow the policyholder to take out a loan against the policy. An Endowment plan functions well as a collateral facility and might even aid the process of taking a loan by smoothening out the bumps that usually appear while taking out a loan under ordinary circumstances.

 However, some plans require the candidate to be of legal age at the time of requesting the loan.

  • Maturity Benefit

If the life assured surpasses the maturity period mark, endowment plans offer an amalgamation of the guaranteed sum assured, accrued guaranteed additions, along with reversionary bonus ( if declared by the company).

This feature distinguishes an endowment plan from other available counterparts and fulfills the promise of guaranteed returns to the policyholder.

  • Flexibility of Premium Mode

Endowment plans work to cater to the needs of investors of a diverse base. It does so by allowing the premium term to be decided by the policyholder. 

They can choose to pay the premiums yearly, half yearly, quarterly or monthly as suited to their current financial status.


Endowment plans provide additional benefits to the investor, along with primary benefits. Along with availing the dual benefits of saving and Insurance cover, given above are some pretty good reasons to invest in an endowment plan.

Also read 

What Happens When An Endowment Policy Matures?

Top 5 Tips To Buy An Endowment Policy

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.             

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