Endowment Policy
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Highlights of Endowment Policy
Most Popular Endowment Policies
Motor insurance plan |
Policy Duration |
Entry Age (Minimum) |
Entry Age (Maximum) |
Add on Coverage benefit |
Age of Maturity |
---|---|---|---|---|---|
Aviva i-life total |
4 plans:
Protect - 10 - 57 yrs Protect Plus - 10 - 57 yrs
Protect Assured - 15 - 30 yrs
Protect Income - 10 - 57 yrs
|
18 years
|
65 years
|
Riders on critical illness, complete disability, terminal illness
|
70 yrs with rider. 75 yrs, without rider
|
Aegon life i -term insurance policy |
5 - 40 yrs
|
18 years
|
65 years
|
Add-on, accident benefit death,premium waiver
|
28 yrs min to 70 yrs max
|
Bajaj Allianz iSecure term assurance plan |
Varies from 10 - 30 years
|
18 years
|
65 years
|
Premium waiver, disability waiver, accident death benefit
|
28 yrs min to 70 yrs max
|
Canara HSBC iSelect + Term plan |
Varies depending on plan from 5-62 yrs
|
18 years
|
65 years
|
N/A
|
80 yrs, 75 yrs
|
Edelweiss Tokio Life Total Secure+ |
Varies as per plan from 10- 62 yrs
|
18 years
|
65 years
|
Premium waiver, disability waiver, accident death benefit
|
80 yrs, 75 yrs
|
Future Generali Flexi Online term plan |
2 plans:
basic 10-75 yrs and
income protection 10-65 yr
|
Basic - 18 yrs Income protection - 25 yrs
|
Basic - 55 yrs Protection - 55 yrs
|
Accident death benefit rider
|
75 - 65 yrs
|
HDFC Life Click to protect Plus plan |
10-40 yrs
|
18 years
|
65 years
|
Accidental and critical illness cover
|
75 yrs
|
ICICI Prudential ICare II Term plan |
Varies between 5-67 yrs
|
18 years
|
65 years
|
available
|
65, 80 and 85 yrs
|
Sahi Advice,
Sahi Insurance
If you have any questions on how to choose the best insurance plan, you can connect with our IRDAI certified insurance advisors.
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An Endowment Plan is a type of life insurance that protects the insured for a specified period. If the insured survives this period, they receive a lump sum amount. In case of the insured’s death during the policy term, the nominee receives the sum assured as a death benefit.
Yes, an endowment plan is different from a term plan. In a term plan, the nominee receives a lump sum in case of the insured’s death during the policy term. If the insured survives, no amount is paid. In an endowment plan, the nominee also receives a lump sum in case of the insured’s death, but if the insured survives, they receive the sum assured plus any accrued bonus.
Below are the things guaranteed under endowment plans:
- Lump sum amount if the insured survives the policy term.
- Lump sum amount to beneficiaries in case of the insured’s death during the policy term.
- Sum assured either on or before the policy maturity date.
- Bonuses, which depend on the policy’s duration, are not guaranteed.
Additional bonus is an amount that the insurer pays extra to the policyholder. Endowment policies allow two kinds of extra bonuses:
Reversionary bonus: It is paid with the sum assured at maturity or in case of the insured's untimely death.
Terminal bonus: It is optional and paid at maturity or early death of the insured.
Endowment plan should be bought because it allows basic benefits of life insurance along with additional benefits such as:
- Double endowment
- Educational endowment
- Marriage endowment
Further, the plan allows the insured to buy extra riders to add to the basic plan.
Anyone looking for a low-risk investment with insurance, savings, and wealth creation benefits should consider an endowment plan.
Yes, endowment policies are excellent investment options. They encourage disciplined saving, fulfill financial needs, and provide life coverage for the insured's family if the policyholder dies before maturity.
Yes, invest in an endowment policy to develop a saving habit and gain insurance coverage benefits, which makes it a popular investment tool.
Yes, you get tax benefits under endowment policies on premiums paid and the maturity amount under sections 80C and 10(10D) of the Income Tax Act. 1964.