types of endowment policy

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Endowment Insurance Plan is the most prevalent and traditional method in India to take insurance. A risk-free investment that provides financial security by adding a small amount fulfills your savings goals and helps in making a good amount of money by meeting the long-term investment objective. Let us know the types of endowment policy, why should take it, and what things should be taken care of before taking it. To know more read our article below.

What is Endowment Insurance Policy?

An endowment insurance policy is a kind of Life Insurance, where, upon completion of insurance term, the policy pays the full sum insured to the holder, if the policyholder dies during the term of the insurance policy, and then the beneficiaries will be given full sum assured.

How Does The Endowment Insurance Policy Work

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How Does The Endowment Insurance Policy Work?

The Endowment insurance plans are parallel to normal insurance plans. However, one of the best types of endowment policy provides life insurance cover and a saving prospect for its financiers to save repeatedly over a precise period. On the development of such policy, the lump-sum maturity money is offered to the policyholder that he or she can further use to complete the monetary objectives of the life including his or her children’s education, retirement planning, purchasing property, etc.

Now that you have a brief overview of the types of endowment policies and how does it work, let’s take a look at the best endowment plans in India.

What Should We Check Before Taking Endowment Insurance Plan?

There is an abundance of endowment insurance plans available in the market today. Choosing a suitable plan will depend on many factors, including your existing living standards, personal need, and income etc. It is very important that you know how your endowment insurance premium is determined. Also, be sure to read terms & conditions to know before taking endowment insurance policy from any insurance company.

Always consider comparing the policies before buying them. Different insurance companies offer different facilities to its policyholder. So at first check that which company meets your requirements and then buy your endowment policy.

What Are The Types Of Endowment Policy

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What Are The Types Of Endowment Policy?

There is a total of 4 types of Endowment Policy exists. Today in this article below I am going to give you a brief idea regarding the types of Endowment policy. So keep your eyes on to know in details about the types of endowment Policy:

  1. Endowment With Profit
  2. Endowment Policy Without Profit
  3. Full Endowment
  4. Unit-Linked Endowment plan

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Endowment Policy With Profit

Endowment policy with profit guarantees the policyholder lump-sum to be remunerated during its maturity or death of the Endowment insurance policyholder. The total sum assured money of this policy rises as the policyholder acquires regular / reversionary additional benefit.

These are assured advantages are certainly payable to its insured. In Addition to this, in some cases, the insurance policy also provides a terminal advantage, which is known as the non-assured bonus. This bonus is payable by the company to the policyholder at the completion of an Endowment Insurance plan.

With profit is one of the best types of endowment policy for persons who wish to have a steady flow of revenue or need to achieve a precise objective like reimbursing a mortgage and so many more.

Endowment Policy Without Profit

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Endowment Policy Without Profit

This is one of the most traditional types of endowment policy, where the total sum assured money is remunerated to its insured as the maturity profit or to its beneficiary as the death benefit.

Full Profit Endowment Policy

Under the Full Profit Endowment Policy, the elementary amount assured has to be paid to the insured is equivalent to the death profit, right from the initial time of the policy. As per the ventured market-based obligation, the ultimate expenditure provided is comparatively higher in such types of Endowment Policy.

Unit-Linked Endowment Policy

A unit-linked endowment plan is a type of endowment policy in which a share of the premium is remunerated for its insurance coverage and the remaining premium is capitalized in various units of the investment resources. The policyholder can select the fund alternatives for the investment as per their suitability.

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