What is Endowment Insurance Plan?
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Introduction
In this article I will be writing about the endowment insurance plans which is one of the insurance plans in India. Starting from this article i will be 
writing about the different insurance plans and providing the suitable ideas on choosing the right plans for your family. I hope this will help you to understand the insurance basics and in-depth knowledge on insurance plans. Post your feedback on the comments section. If you like the article please subscribe our future articles here.
Endowment Insurance Plans
Protection + Savings = Endowment Insurance
Other insurance plans like Term Insurance will provide only the life cover and the benefits will be given only when you demise. Endowment insurance plans is with savings in the mind. Some times you would require life protection with the savings which might require at some point of time. Those who needs will opt for the endowment plans.
Normally endowment plans cost you more. You will have to pay the high premium because at the maturity time you will get the assured amount and the bonus accrued for the insurance premium as the profits. Most people argue that endowment plan is not the good option as savings because the return on the investment will be very low compare to the long term investments like PPF which yields 8% with no tax liability. However it purely depends on the individuals decision to choose the appropriate plans.
In endowment plans, in the event of death of the insured during the term of the policy, the nominee receives the sum assured plus the bonus/participating profit/guaranteed additions, if any. The bonus or profit is paid for the number of years that the insured survives in the policy term.
Endowment policy is good for young people as it provides them an opportunity not only to cover themselves for risk but also provides financial independence to them in old age by way of maturity benefit. A variation of the Endowment plan is the Endowment plan with Profit or Unit Linked Endowment plan with Profit.
Summary
In this article I have explained about the endowment plans and its purpose. It is advisable to choose endowment plans if the provides gives bothe insurance cover and the profits. I will be writing other various options and different types of insurance products in the next few weeks. Keep reading our future articles. You can subscribe to our future articles here.
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lalit rawat said:
Hi! Thanks for your informative article about endowment insurance plan. While searching for the insurace on internet I came across this online tool which helps people to plan their insurance accoriding to their need & budget. Have a look..
http://www.simpleinsurance.co.inSeptember 19th, 2009 at 4:21 am
