An Endowment Plan is a life insurance policy that combines insurance coverage with savings. It helps you save money regularly over some time and provides a lump sum amount on maturity or to your family in case of your unfortunate demise.
It’s a smart choice if you want guaranteed returns, life coverage, and a disciplined savings habit in one plan.
🛡️ Life Insurance Cover – Financial protection for your family.
💰 Lump Sum Payout – Receive guaranteed maturity benefits.
📅 Regular Savings – Encourages disciplined long-term saving.
📈 Bonus Additions – Eligible plans may offer annual bonuses.
🧾 Tax Benefits – Enjoy tax savings under Section 80C and 10(10D).
🔒 Low-Risk Investment – Ideal for risk-averse individuals.
Endowment plans are best for:
Individuals with low to medium risk appetite
People seeking assured savings and protection
Parents planning for child’s future or marriage
Anyone looking for a safe wealth-building option
An endowment plan is a life insurance policy that helps you save regularly and offers a lump sum amount either on maturity or in case of the policyholder’s death.
Term insurance only provides life cover, whereas an endowment plan offers both life cover and a maturity benefit if the policyholder survives the term.
Yes, most endowment plans offer guaranteed maturity benefits, and some also provide additional bonuses declared by the insurer.
Yes. Premiums paid are eligible for tax deductions under Section 80C, and maturity/death benefits are usually tax-free under Section 10(10D).
Missing premiums may result in the policy lapsing. However, insurers offer a grace period and a revival option to reinstate the policy.
Endowment plans are designed for long-term goals, typically 10 to 20 years, to gain full maturity benefits and bonuses.
No. Endowment plans are low-risk because they provide guaranteed payouts and are not linked to the stock market.
Yes, you can surrender it after completing a minimum lock-in period (usually 2–3 years), but you may receive a reduced surrender value.
Some plans offer reversionary bonuses, which accumulate yearly, and a terminal bonus, which is paid at maturity or death.
In most cases, yes, especially if your sum assured is high or you’re of a certain age. It ensures proper risk assessment.
