What is an Endowment Life Insurance Policy

• Guaranteed Endowment Plan

Under a Guaranteed Endowment Plan, the policyholder will receive guaranteed benefits at the end of the policy term to the amount of sum assured and any additional bonus if applicable. The beneficiary will also receive the same in case of the untimely death of the policyholder while the policy is still active. A Guaranteed Endowment Plan is a good option for people looking for safe and dependable coverage without any risk.

 

• With Profit Endowment Plan

Under the With Profit Endowment Plan, the sum assured amount is the same as the death benefit and is provided to the policyholder at the end of the policy term. This sum assured is pre-decided at the time of buying the policy. Moreover, the final payout to the policyholder at maturity is higher than the sum assured as the insurance company also adds bonuses during the active policy period.

 

• Non-Profit Endowment Plan

Under a Non-Profit Endowment Plan, the sum assured amount, which is the same as the death benefit, is paid out to the policyholder/beneficiary as maturity benefit or death benefit. However, under a Non-Profit Endowment Plan, the policyholder will not receive any additional bonus.

 

• Low-Cost Endowment Plan

Low-Cost Endowment Plans are made specifically with the purpose of helping the policyholder accumulate funds under a specific time period of time, which are paid out at the end of the policy as maturity. If the policyholder or the insured passes away while the policy is active, the accumulated funds are paid to the beneficiary as the death benefit. These funds are often used to pay off mortgages or other loans.

• An Excellent Saving Tool:

As a part of the premiums you pay towards your endowment plans are savings, you will have a healthy nest egg of savings/investments at the end of your policy term. As a combination of life insurance and savings, an endowment policy serves as a great way to save your money over time with discipline.

 

• Life Insurance Coverage:

Apart from being a tool for saving money, an endowment policy also serves as a life insurance policy providing financial coverage to your family and loved ones in the case of your untimely demise. In case the policyholder passes away while the policy is active, the sum assured along with any bonuses(if available) is paid to the beneficiary as the death benefit.

 

• Serves as a Retirement Fund:

The lump sum amount paid at the end of the policy period as maturity benefits can serve to supplement your retirement funds significantly. The funds can be used post your retirement in multiple ways, such as travel, funding your children’s education, medical bills, etc.

• People looking for risk-free investments:

As mentioned previously, the money invested in endowment plans is extremely low risk and remains secure. People who are looking for a way to securely save money for their future can buy an endowment plan to achieve their goals.

 

• Young professionals:

It is often suggested that life insurance should be purchased early in one’s career. Young people in their 20s and 30s should invest in an endowment policy as their premiums will be lower and they can save up a significant amount of money by the time their policy period ends.

 

• People looking for insurance coverage:

People who are looking to buy a life insurance plan to protect their family and loved ones can also buy an endowment plan as it provides the added benefit of savings along with life insurance cover.

 

• People who want a financial safety-net for retirement:

The premiums you have invested in an endowment plan will create a healthy financial safety net for your retirement.

• Plan Early:

An endowment policy is a long-term investment product and helps in accumulating wealth over several years. It is advisable to start early to boost the final corpus as the power of compounding works over the long term.

 

• Flexibility:

Payment of premiums on time is a key requisite to receive the entire benefits from an endowment policy. Before investing in a plan, inquire about the premium payment term. Policies for salaried employees have monthly payment terms, while people with irregular income can avail single or yearly premium payments.

 

• Know the Type of Plan:

There are various types of endowment policies. It is important to know the type of policy before opting for one. You should research the types of endowment plans given above and choose the appropriate one as per your needs.

 

• Opt for Plans with Riders:

You can choose to enhance the insurance coverage of an endowment policy by choosing a critical illness rider or an accidental death rider. Choose a policy that offers a wide variety of riders so that you can customise it as per your requirements.

 

• Bonuses:

Some endowment plans add to the savings by paying regular bonuses. The bonuses are paid from the profit that the insurer makes by investing the amount paid as premiums. Choose a policy that pays bonuses as they offer higher returns.

 

• Non-Guaranteed and Guaranteed Returns:

Not all endowment policies guarantee returns. Some plans have a component of guaranteed returns and some are with non-guaranteed returns. Know about the policy in detail before investing.

• Instant Policy Issuance:

Buying any policy through Bajaj Markets is swift, safe and easy. You can buy an endowment policy in a short amount of time by following a series of straightforward steps online through the Bajaj Markets website.

 

• High Claim Settlement Ratio:

One way to measure the reliability of an insurance company is through its claim settlement ratio. A higher claim settlement ratio is an indicator that the insurance provider is legitimate and trustworthy. Bajaj Allianz Life is a trusted insurer and has a high claim settlement ratio. With the endowment plans available on Bajaj Markets, you can enjoy a quick settlement.

 

• Hassle-Free Process:

Buying an endowment plan through Bajaj Markets is a hassle-free process with no complications and minimal paperwork.

 

Now that you know an endowment insurance policy offers financial security to your loved ones, tax exemption to you, and a goal-based savings option, head over to our ‘Insurance’ page and check out the plans now.