Features of an LIC Endowment Plan:
An endowment life insurance policy is a policy that couples the benefits of the concept of life insurance with the concept of savings.
An endowment policy is essentially a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term. This maturity amount can be used to meet various financial needs such as funding one’s retirement, children’s education and/or marriage, or buying a house.
A life insurance endowment policy pays the full sum assured to the beneficiaries if the insured dies during the policy term or to the policyholder on the maturity of the policy if he/she survives the term. Thus, “any life insurance plan with a saving component and lump sum maturity benefit can be termed as an endowment plan. That can be a unit-linked insurance plan (ULIP) or a non-ULIP. However, in common parlance, only a non-ULIP saving-linked life insurance plan is referred to as an endowment plan.
Endowment plans, thus, fulfill the dual need for a life cover and savings under a single plan. They are one of the traditional forms of life insurance plans available in the Indian market. Endowment policies are basically of two types – with profit and without profit. Within these two classes, there are many variations of endowment plans structured to meet the need of child education, whole life protection, and pension, among others.
Who should consider buying endowment policies?
According to experts, people with a regular stream of income and a need for a lump sum amount after a period of time may consider buying an endowment plan. “Endowment plans provide a disciplined route for savings, which could come in handy in case of a financial emergency. Salaried people, small businessmen, and professionals such as doctors and lawyers should look at this plan to meet their long-term financial security needs. Also, people who are risk-averse and do not mind settling for a lesser return than taking additional risks should go for endowment plans.
The endowment plans offered by LIC:
- Endowment Plan.
- New Endowment Plan.
- New Jeevan Anand.
- Jeevan Rakshak.
- Limited Premium
- Endowment Plan.
- Jeevan Lakshya.
- New Endowment Plus.