Endowment Insurance Policy
An endowment insurance offers death cover if the life insured dies during the term of the policy and also offers a Survival benefit if the life insured survives until the maturity of the policy.
Some of the key features of an Endowment insurance plan are -
• If the life insured survives the entire term of the plan, then a specified amount is paid to him/her on maturity of the plan
• If the life insured dies before the maturity of the plan, then the death cover benefit is paid to the nominee/beneficiary
• Savings element: After deducting the death cover charges & administration charges from the premium, the remaining amount is invested by the insurance company. The returns earned are later paid back to the life insured in the form of bonuses.
• Goal-based investment: Helps in accumulating money for specific plans like a child’s higher education or marriage, etc.
• Some insurance companies also allow partial withdrawal or loans against these policies
• There are different variants under this plan –
− Higher death cover than the maturity benefit
− Maturity benefit is double the death cover, known as a double endowment insurance plan
An endowment insurance offers death cover if the life insured dies during the term of the policy and also offers a Survival benefit if the life insured survives until the maturity of the policy.
Some of the key features of an Endowment insurance plan are -
• If the life insured survives the entire term of the plan, then a specified amount is paid to him/her on maturity of the plan
• If the life insured dies before the maturity of the plan, then the death cover benefit is paid to the nominee/beneficiary
• Savings element: After deducting the death cover charges & administration charges from the premium, the remaining amount is invested by the insurance company. The returns earned are later paid back to the life insured in the form of bonuses.
[Post Image Courtesy of JK1991 at FreeDigitalPhotos.net]
• Goal-based investment: Helps in accumulating money for specific plans like a child’s higher education or marriage, etc.
• Some insurance companies also allow partial withdrawal or loans against these policies
• There are different variants under this plan –
− Higher death cover than the maturity benefit
− Maturity benefit is double the death cover, known as a double endowment insurance plan
Insurance Law And Practice - ICSI
Endowment Insurance Policy
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Wednesday, May 17, 2017
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