Endowment Life Insurance Plan:
Endowment life insurance policy is a combination of both life insurance policy and a savings plan, it is a little different from term life policy.
The person can make saving with the Endowment life insurance policy, this policy helps both saving and life insurance covered (sum assured)
The policyholder will get a lump sum amount on policy maturity if he survives the policy term (completing the term year).
In the case of unfortunate death of the policyholder between the policy term, the insurance company will pay the sum assured (plus the bonus, if any) to the nominee.
The Endowment life insurance policy is useful to meet the various financial needs such as buying a house, marriage and or children’s education.
If anyone buys an Endowment life insurance policy for 20 years, the buyer is entitled to investment benefit at the end of 20 years.
This is the basic structure of an Endowment life insurance policy. The premiums pay buy the buyer goes for both insurance coverage and investment.
Policy buyer can easily choose how much premiums to pay each month/quarter/year and what are the premiums paying term year, usually, this is for 10 to 20 years.
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