Endowment Policy
An Endowment Insurance or an Endowment policy is an insurance contract designed to pay a lump sum amount after a specific term (i.e. on maturity) or on death. Typical maturities are 10 years, 15 years or 20 years up to a certain age limit. Some Endowment insurance plans also pay out in the case of critical illness.
Benefits and Features of Endowment Policy:
- Maturity Benefit: On maturity, a pre-determined amount will be paid to the policyholder.
- Death Benefit: In case of policyholders death, the beneficiary/nominee would be entitled to the SA (sum assured) or the accumulation amount, excluding outstanding premiums, whichever is higher.
- There will be High Liquidity.
- Limited Premium payments.
- Savings oriented.
Types of Endowment Policies:
| Types | Description |
| Unit-Linked Endowment | Under this plan, the premium is distributed into several units of a specified investment fund. The Policyholders can choose the investment fund, where they desire to invest their premiums. |
| Full Endowments | It is a policy, where the basic amount ensured is equal to the death benefit from the starting of the policy. The final payout is relatively large, based on speculated market-led appreciation. |
| Low Cost Endowment (LCE) | This is designed to collect the sum needed to pay after a given term, usually for paying off a mortgage. But, there are no guarantees. To pay off their mortgage, investors may have to increase their premiums. |
Example of Endowment Policy:
Suppose Mr.Baek has a Endowment Insurance plan for 20 years with SA (sum assured) of 1 lakh.
- Maturity Benefit: On survival of the policyholder till the end the policy term, Mr.Baek will get Sum Assured + Bonus => 1 lakh + Bonus.
- Death Benefit: In case of death of Mr.Baek during the policy term of 20 years, for suppose death is occured on the 10th year, then nominee will get Sum Assured + Bonus for 10 years => 1 lakh + Bonus for 10 years.
Endowment Policies of Different Life Insurance Companies
1. AEGON Religare Life Insurance Company
Endowment Insurance Plans:
- AEGON Religare Guaranteed Growth Insurance Plan
- AEGON Religare Iguarantee Insurance Plan
Children Insurance plans:
- Aegon Religare Educare
- Aegon Religare Educare Advantage Insurance Plan
2. Aviva Life Insurance Company India
Endowment Insurance Plans:
- Aviva New Family Income Builder
Children Insurance plans:
- Aviva Young Scholar Advantage
- Aviva Young Scholar Secure
3. Bajaj Allianz Life Insurance Endowment Insurance Plans
- Bajaj Allianz Save Assure
4. Bharti AXA Life Endowment Insurance Plans
- Bharti Axa Aajeevan Sampatti
- Bharti AXA Life Secure Savings Plan
- Bharti AXA Life Flexi Save Plan
5. Birla Sun Life Insurance Company
- Not available
6. Canara HSBC OBC Life Insurance Company
Endowment Insurance Plans
- Not available
Children Insurance plans
- Canara HSBC OBC Future Smart Plan
7. DHFL Pramerica Life Insurance Company
- Not available
Children Insurance plans
- DHFL Pramerica Future Idols Gold Plan
- DHFL Pramerica Rakshak Plan
8. Edelweiss Tokio Life Endowment Insurance Plans
- Edelweiss Tokio Life Safe N Sure Plan
- Edelweiss Tokio Life Single Pay Plan
9. Exide Life Insurance Company
Endowment Insurance Plan
- Exide Life Secured Income Insurance RP
Children Insurance plans
- Exide Life Creating Life Child Protection Plan
10. Future Generali Life Insurance Company
- Not available
11. HDFC Standard Life Insurance Company
Endowment Insurance Plans
- HDFC Life Classicassure Plus Plan
- HDFC Life Sanchay
- HDFC Life Super Savings Plan
Children Insurance plans
- HDFC Life YoungStar Udaan
12. ICICI Prudential Life Insurance Company
- Not available
13. IDBI Federal Life Insurance Company
- IDBI Federal Lifesurance Savings Insurance Plan
14. IndiaFirst Life Endowment Insurance Plans
- IndiaFirst Maha Jeevan Plan
- IndiaFirst Simple Benefit Plan
15. Kotak Mahindra Old Mutual Life Insurance Company
- Not available
16. Life Insurance Corporation of India (LIC) Endowment Insurance Plans
- LIC Single Premium Endowment Plan
- LIC New Endowment Plan
- LIC New Jeevan Anand Plan
- LIC Jeevan Rakshak
17. Max Life Insurance Endowment Plan
- Max Life Life Gain Premier
- Max Life Whole Life Super
18. PNB Metlife India Insurance Endowment Plan
- Met Monthly Income Plan
19. Reliance Life Insurance Company
Endowment Insurance Plans
- Reliance Life Money Multiplier Plan
- Reliance Endowment Plan
- Reliance Life Super Endowment Plan
Children insurance plans
- Reliance Child Plan
20. Sahara India Life Insurance Company
- Not available
21. SBI Life Insurance Company
22. Shriram Life Insurance Company
- Not available
23. Star Union Dai-ichi Life Insurance Company
- SUD Jeevan Safar Plus Plan
24. TATA AIA Life Insurance Company
- Tata AIA Mahalife Gold
- Tata AIA Life Mahalife Supreme Plan
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