Endowment Plans
Life insurance plans combining protection with savings benefits.
How we help
An endowment plan combines life cover with saving. It pays the sum assured, with any bonuses declared, either at maturity or to your nominee if you die during the term.
The cover for each rupee of premium is much lower than a term plan's, and bonuses are declared by the insurer each year rather than promised, unless the policy guarantees them in writing. We set out both points before you decide.
It can suit someone who wants a fixed, disciplined saving with protection attached. We go through the premium-paying term, the surrender value in the early years and the maturity date with you.
What it covers
- Life insurance cover
- Potential maturity benefits
- Benefits subject to policy conditions
Policy benefits, eligibility, premiums, and terms vary by insurance product.
Before you decide
Points to check
- 01The sum assured compared with the premium you pay
- 02Which benefits are guaranteed and which depend on bonuses
- 03The surrender value if you stop paying in the early years
- 04Whether you can keep paying the premium for the full term
Common questions
What people ask us about Endowment Plans
What happens if I stop paying premiums?
If premiums have been paid for the minimum period stated in the policy, it may acquire a surrender value or continue as a paid-up policy with a reduced sum assured. Stopping early usually means getting back less than you paid in.
Are bonuses guaranteed?
Bonuses are declared by the insurer based on its own performance and are not guaranteed unless the policy document says so. Past bonus rates do not indicate future ones.
Can I take a loan against the policy?
Many endowment policies allow a loan once they acquire a surrender value, subject to the insurer's terms and interest rate.
More in LIC – Life Insurance Products
- Term Life InsuranceFinancial protection for your family through life cover for a specified policy term.Learn more
- Whole Life InsuranceLife cover designed to continue for a very long period, often up to age 99 or 100.Learn more
- Money-Back PlansLife insurance plans that may provide periodic payouts during the policy term.Learn more
- Unit Linked Insurance Plans (ULIPs)Insurance plans that combine life cover with market-linked investment in funds of your choice.Learn more
- Child Insurance PlansPlans that help fund a child's education and future milestones, with protection for the parent.Learn more
- Pension PlansInsurance-based solutions designed to support retirement income needs.Learn more
- Annuity PlansPlans that turn a lump sum into a regular income, for life or a fixed period.Learn more
- Retirement PlansPlanning to build savings and an income that can support you after you stop working.Learn more
- Group Life InsuranceLife cover for the members of a group, such as the employees of a company or a society.Learn more
- Joint Life InsuranceOne policy covering two lives, usually spouses, with a single premium.Learn more
Shree Sai Insurance is the practice of Amit Dhirajlal Waghela, an AMFI-registered mutual fund distributor (ARN-166386), not a SEBI-registered investment adviser. The firm earns commission from asset management companies on the schemes it distributes, does not charge a fee for distribution, and does not guarantee returns. Insurance is offered separately from the mutual fund distribution business. Mutual fund investments are subject to market risks. Read all scheme related documents carefully.