Best 5 Endowment PLans In India
Table of Contents
A traditional insurance plan pays out a lump sum assured in the event of the death of the policyholder. The beneficiaries/dependents/nominees of the life insured receive a benefit (called a death benefit) if the worst should come to pass for the insurance holder. An endowment plan works the same way, but has an additional clause that states that a lump sum payment will be made to the insurance holder if he or she survives till the end of a specified period known as the ‘maturity period’, ‘endowment policy term’ or ‘survival term’. There are variations to the payout clause in endowment policies – some companies have a lump sum payout on the detection of a critical illness, or other life-changing events.
Some Popular Endowment Plans in India
Reliance Endowment Plan
Sum Assured plus vested bonuses on maturity, subject to 100.1% of premiums paid.
Death benefit of 10 times the annualized premium or base Sum Assured plus vested
bonuses. Either that, or 105% of all premiums paid.
Policy term from 10 – 25 years.
Loan against policy available
Kotak Classic Endowment Plan
A participating endowment plan providing coverage up to 75 years of the life insured.
Yearly bonuses applicable from the first year.
Wide range of term options.
Tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961.
Riders available to enhance protection.
Kotak Premier Endowment Plan
Receive 5% p.a. (simple) of basic Sum Assured as Guaranteed Additions during the first 5 policy years.
Bonuses accrue from the 6th policy year onwards.
Regular or limited premium paying term for 5, 7, 10 or 15 years for different term combinations.
7 additional riders available.
LIC New Endowment Plan
Minimum sum assured of Rs.1 lakh.
Death benefit no less than 105% the total premiums paid.
Death benefit is the higher of basic Sum Assured or 10 times the Annualized premium.
Accidental death and disability rider available.
Shriram Life Insurance - New Shri Life
Life cover plus reversionary bonuses.
Advance premium payment option with a discount.
Additional protection is available through riders.
Minimum Sum Assured of Rs.50,000.
Monthly, quarterly, half yearly and annual modes of premium payment.
Conclusion
An endowment insurance plan provides a risk cover against death on the life of the policyholder and also provides a lump sum benefit at maturity of the policy. Thus endowment plans provide the policyholder both protection cum savings features, making them useful when it comes to long-term wealth creation.
