Endowment policy offers both coverage and a means for saving. Like any other life insurance plan, here, the beneficiary gets the sum assured in case of the death of the insured. However, if the insured survives the plan, he/she gets the maturity benefit.
Key Features of Endowment Policies:
- Sum assured in an endowment policy is payable either on survival to the term or on death occurring within the term.
- Endowment policies are available as ‘With Profit’ and ‘Without Profit’ plans.
- Under Endowment policies, bonus for the 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 single premium.
- Premiums cease on death or on expiry of the term, whichever is earlier.