Endowment Insurance

An endowment insurance policy is a life insurance contract that provides both a death benefit and a savings corpus. If you pass away during the policy term, your family receives a payout. If you survive the term, you get a lump sum maturity amount.

Key Features

• Dual Benefit: Combines life protection with disciplined, regular savings.
• Maturity Payout: Gives back the sum assured plus any accumulated bonuses or profits if you live until the end of the policy.
• Tax Savings: Premiums and maturity proceeds often qualify for tax benefits under local tax laws (such as Section 80C and 10(10D) in India).
• Loan Facility: Allows you to borrow money against the policy after a specific period.

Common Types

• Participating (With-Profits): Earns bonuses based on the insurance company's performance.
• Non-Participating (Without-Profits): Offers fixed or guaranteed returns independent of company profits.
• Unit-Linked (ULIP): Ties returns directly to market investments.