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What Are The Salient Features of Endowment Policy?

With an unending surge of insurance plans in the market, there are a lot of options to choose from. Therefore, it is important to know the salient features of the plan that is ideal for you.

Endowment plans bring a lot to the table, setting them apart from the other plans in their conduct. Such plans offer dual benefits of saving and insurance, bound together by a promise of security. In this article, we have compiled all the primary features there are to know about endowment plans.

Salient Features of An Endowment Plan

Following are the key vital highlights of an Endowment plan you need to be familiar with: 

  1. Fulfills Dual Objective

    Endowment plans are popular among the investors for presenting a dual benefit plan. Such plans provide an amalgamation of saving benefits along with insurance cover to the family of the policyholder. It can be deemed as a protection plan for this very purpose.
  2. Maturity And Death Benefits

    On the account of survival of the policyholder after the maturity period, the sum assured is payable and any accrued bonuses along with it. The policy ceases to exist after the sum is paid to the policyholder on policy term.
    In case of demise of the policyholder, the sum assured is provided to the nominated beneficiaries of the policy. The Policy closes  upon payment of the death benefit.
    Maturity benefits in addition to the death benefits make endowment plans a popular option.
  3. Guarantees Higher Returns

    Endowment plans offer a higher and risk free return whether it is provided in the form of maturity or death benefits. The premium paid by the policyholder helps support a saving corpus, and will fetch you a great sum over the years.
    The returns from an endowment plan will support your family along with your future plans. 
  4. Flexibility of Payout

    Endowment plans offer the alternative of receiving the total guaranteed sum as a singular amount or as part of maturity proceeds, which indicates that a portion of the amount can be accessed upon withdrawal and the remaining will  be paid out as portions throughout the time frame, as referenced in the agreement.
    This feature of an endowment plan gives the policyholder the comfort of retrieving the sum as necessary.


Every plan comes with significant features to set them apart from other plans in range. It is crucial to understand and note the difference before investing your money in a certain plan. 

In the above article, we have listed the salient features of an endowment plan that will enhance your understanding and guide you in the process of selecting the right plan for you.

Also Read: Important Things To Know About Endowment Plan

What Is An Endowment Policy And Should I Get One?

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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