Tax Benefits as applicable
Sum assured Upto 10 times the annual premium
Premium payment for a limited duration
Rs. 1.5 Lakh
Rs. 5 Crore
Rs. 65.10 Lakhs
Endowment plans offer the policy holder the dual benefit of protection and savings. These plans are most suitable for those individuals who do not want to risk their investments in market-linked returns. Endowment plans provide a death benefit and a maturity benefit.
In case of the policyholder’s death, the payout, along with bonuses or guaranteed additions, if any, goes to the beneficiary. The bonus usually depends on the number of years of the policy term that the policyholder has lived.
A part of the premium paid by you is invested either on a with-profits basis or a unit-linked basis. You premium amount depends on your age, sex, and how long the endowment is for.
The size of the lump sum you get at the end of your endowment often depends on the performance of these investments.
This means your savings are pooled together and invested by the insurance company in various investment options, typically;
Endowment options are minimum risk investments and usually guarantee payback. The investment with profit options are designed to grow steadily as bonuses are added. Usually bonuses, once added, can’t be taken away. But if you cash in your policy before the end of the term, some of the bonuses might be clawed back through a special charge (called the Market Value Reduction, MVR, or Market Value Adjustment, MVA).
ULIP’s, also a type of endowment plan, on the other hand are high risk investments. Growth depends on the performance of the funds you choose. By choosing diverse funds, you can weather the ups and downs of the market better.
For more details on the risk factors and the terms and conditions please read the sales brochure and/or sample policy document on our website carefully and/or consult our advisor before concluding the sale
Tax benefits are subject to change as per tax laws. Please consult your tax consultant on tax benefits
* Terms and Conditions Apply