Endowment Assurance Plan
Updated On Nov 24, 2023
Table of Contents
LIC Endowment Assurance Policy is an endowment policy with a high bonus and liquidity facility incorporated. The Sum Assured along with the accrued Bonus is payable on the Policy Maturity or on earlier death. This plan provides for disability benefits incorporated within where the future premiums would be waived off along with accidental death benefit rider, critical illness rider and term rider.
What is an Endowment Assurance Plan?
Endowment assurance plans are types of life insurance that combine safety with savings. Also, they provide a lump sum amount after completion of the policy or in case of the unfortunate demise of the person holding the policy.
Key Features of LIC Endowment Assurance Policy
There are numerous important aspects of the LIC Assurance plan which are:
- This plan is a simple endowment plan with guaranteed returns
- Sum assured + accrued Bonus paid on Maturity or on earlier Death.
- The lump sum amount of money received on maturity can be reinvested to buy an annuity for old age sustenance
- This plan offers disability benefits as well where the future premiums would be waived along with payment of Disability Benefits.
- Optional higher cover through 3 additional riders
Benefits you get from the LIC Endowment Assurance Policy
The benefits of LIC Endowment Assurance plan are:
Death Benefit – In case of death of the Life Insured, the nominee receives the Sum Assured + accrued Bonus. The final additional bonus is also payable if the premium has been paid for at least 17 years.
Maturity Benefit – At the maturity of the policy, the insured will get a Sum Assured + accrued Bonus. The final additional bonus is also payable if the premium has been paid for at least 17 years.
Income Tax Benefit – Premiums paid under a life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D).
How to Choose the Best Endowment Policies in India?
It is very hard to select one endowment plan when there are so many insurance companies available in the market. The top things that need to be considered when choosing an assurance plan are:
- Financial Goals
- Policy Term
- Maturity Benefits
- Riders
- Claim Settlement
- Reputation of company
Conclusion
If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.
Also read:
