Traditional life insurance plans: Know how money back, endowment plans work If you are looking to buy a life insurance policy that can provide life cover as well as help you save money for your future goals with a steady return, then in that case a traditional life insurance plan will be of use to you. A traditional life insurance policy could be an endowment plan, money-back plan or a whole of life insurance plan. Based on your age, term of the policy till which you want insurance coverage and the sum assured ( life coverage amount), the premium is arrived at. On death during the policy term, the sum assured is paid to the nominee while on surviving the term of the policy, the policyholder...
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In InsuranceSamadhan.com’s A-Z Blog series on Insurance topics, we try to provide all vital information related to the Insurance sector and demystify certain myths related to the sector. In today’s blog, we are sharing detailed information regarding Endowment Insurance policy – its meaning, features, merits and demerits. Endowment means saving for a purpose. Literally Endowment is a fund which can be used to generate regular income for a charitable purpose. Traditionally all savings are done to create an Endowment Fund. Later in the beginning of 19 century, Insurance and savings was linked and Insurance companies promoted Endowments Funds where Insurance cover was given on death and...
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Endowment plans are insurance plans that offer guaranteed benefits in the shape of total sum assured along with various bonuses to the policy holder upon the maturity of the term of the plan or to the nominee(s) of the policy holder in the event of her/his demise before the term maturity. Endowment plans are basically insurance instruments that offer added advantage of providing savings option to the investor. An endowment plan offers main plan benefits i.e. sum assured to the nominee(s) of the policy holder in the event of the policy holder’s demise during the policy term and also entitles the policy holder to receive the maturity bonuses in case she/he survives the policy term. Endowment...
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State Life Endowment Plan (Savings and protection plan) State Life Endowment Plan is a unique saving and protection scheme through which the policy holder can get a particular amount of money at a specific time speculated on the basis of his/her future requirements. State Life Endowment plan is most suitable for people who are far sighted and want to fulfill their future needs. Bank Alfalah Limited in partnership with State Life Insurance Limited offers State Life Endowment Plan Features and Benefits All your invested premiums are completely secure. This means at the time of maturity of the plan you get the entire cash value accumulated during the term of the plan plus bonuses. It is a...
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LIC (International) B.S.C. (c)'s Double Cover Endowment Plan is substantially different from conventional Endowment Plans. It provides a new dimension to the concept of insurance security. Under this plan if the life assured survives the term, then the sum assured along with bonuses is paid. In the event of death during the term of the policy, the basic sum assured is doubled and paid along with accrued bonuses on the basic sum assured. For example, if a person is insured for $100,000 under this plan, and in the event of death before the maturity of the policy, $200,000 plus bonuses accrued on the basic sum assured of $100,000 become payable. If the policyholder survives the full term, the...
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When it comes to life insurance, one of the most misunderstood topics is endowments. Many people don’t know what they are or how they work. In this guide, we will discuss everything you need to know about life insurance endowments! We will cover what an endowment is, how it works, and why you might want one. What Are Life Insurance Endowments? An endowment policy is a type of life insurance policy in which the beneficiary will receive the face value of the policy upon the death of the insured, or if the insured is still alive at the end of a specified period, whichever comes first. Endowment policies are contracts that originally were designed to combine life insurance and a savings...
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Why Bharti AXA Life Super Endowment Plan is great for you? This plan can offer financial security as well as a vehicle for saving and growing wealth. So, if you require a policy that provides life insurance protection, a maturity benefit, and a tax advantage# all in one bundle, consider purchasing Bharti AXA Life Super Endowment Plan. How Does the Plan Work? Endowment plans are all-purpose life insurance products. They give financial security as well as a vehicle for saving and growing wealth. So, if you require a policy that provides life insurance protection, a maturity benefit, and a tax advantage# all in one bundle, consider purchasing Bharti AXA Life Super Endowment Plan. Some plans...
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Types of Endowment Plans Now that you know the basics of what is an endowment policy, let's take a look at the different types of endowment plans available. 1. With Profit Endowment Under the Full/With Profit endowment plan, a basic sum is assured to the policyholder at the start of the plan. However, the final payout is comparatively much higher than the basic amount since it combines specific bonuses announced by the company during the plan's tenure. Once declared, the bonuses become a part of the policy and are received by the beneficiary upon a claim or after maturity. 2. Non-Profit Endowment In the case of a non-profit endowment plan, a predetermined lump sum amount is payable at the...
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What is an endowment policy and should I get one? An endowment policy is a type of life insurance that doubles as an investment vehicle, which pays out a lump sum to you during your lifetime (i.e. when it matures). The UK endowment policy earned itself a bad name in years past, following mis-selling of endowment mortgages and poor fund performance. However, the product has had a bit of a rebirth and a few specialist providers are offering new endowment policies. Whether you have an existing product and are not sure what to do with it, or are thinking of taking one out as a future investment, here’s what you need to know. What is an endowment policy? An endowment policy is a type of...
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Endowment Plan Insurance A lot of us put out our heart and soul into working toward a better future. We work for a future where you have sufficient resources to not only get through all the chores but also fulfil other needs. However, when we are talking about the future, there are a lot of uncertainties that come along with it; potentially a lot of ups and downs. When there are ups, one just grabs them by the opportunity. But what about the downs? They can set you back or even worse pull you down if you are not prepared enough. Is there a way to protect yourself from such fluctuations? Enter, endowment insurance plans. An endowment insurance plan is an ideal product for the future as it...
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