Types of Endowment Life Insurance
Image by storyset on FreepikToday, there are many investment options available to customers in the Indian market and each option has its own characteristics. Studies in this area show that every investment may not be the best option for every person. While one investment may be good for one person, the same investment may not be the right choice for another person.
This is because the economic condition of people, their needs and their objectives are different from each other. Therefore, being a Financial Advisor and Life Insuance Advisor, we would advise you to identify your Financial Situation, your Needs and your Goals before deciding on any investment, then study the various investment options carefully. After this select the most suitable plan for you.
In this article of Jeevan Bima Bazaar, the types of endowment plans are being explained. It is very important for you to know this. Because if you feel that Endowment Life Insurance Plan can be a better option for you, then you also need to know which format of Endowment Life Insurance will prove to be best for you?
Let us understand what are the formats of Endowment Life Insurance Plans available today?
Endowment Life Insurance Plan with Benefits:
These types of Life Insurance Plans are highly preferred by the customers. Because in Endowment Life Insurance Plans with Profit, the customer can choose the Sum Assured as per his need and desire. Life Insurance Companies set the premium for the Sum Assured selected by the customer.
The specialty of Endowment Life Insurance Plans with benefits is that on completion of the policy the customer receives the Sum Assured along with some additional money. This additional money is called bonus in Life Insurance Language.
Let us understand it in simple words. Suppose you have purchased a with-profit Endowment Life Insurance Policy. So whatever benefit the Life Insurance Company will receive due to this policy, the Life Insurance Company will declare it every year. Whatever benefit you earn in your policy based on this announcement made by the Life Insurance Company, will continue to be added to your policy. But such benefits will be paid only on maturity of the policy or in case of death.
Non-Profit Endowment Life Insurance Plan:
These types of Endowment Life Insurance Plans do not promise any bonus or other benefits to the customer. In non-profit Endowment Life Insurance Plans, the Sum Assured along with interest is paid on maturity of the policy or in the event of death.
In simple form, you can understand it in this way that bonus is announced every year in schemes with benefits. Due to which the customer knows how much benefit he has received from his policy every year. Whereas in non-profit Endowment Life Insurance Plans, the Life Insurance Company does not declare bonuses. In these plans, it is known only on Maturity or at the time of Death Claim, what benefit will be received from the policy?
Guaranteed Endowment Life Insurance Plan:
In such Endowment Life Insurance Plans, the customer receives Guaranteed Returns from their Policy. In such Endowment Life Insurance Plans, the Life Insurance Company decides in advance how much of the benefit from the policy will be returned to the customer with a Guarantee.
However, in some such plans, Life Insurance Companies promise Guaranteed Returns for a certain period, while in others, along with the Guaranteed Returns, they also promise some additional returns.
Our suggestion to you would be that if you decide to buy this type of Endowment Life Insurance Policy, then you must read all the rules of the policy carefully and buy the policy only after understanding it.
Types of Endowment Life Insurance based on Premium Deposit Method:
In the above, various types of Endowment Life Insurance Plans have been explained based on the returns of Endowment Life Insurance Plans. Let us know what are the types of Endowment Life Life Insurance Policies based on the method of Premium Payment?
General Endowment Life Insurance Plan:
In such Endowment Life Insurance Plans, the customer has the right to choose the term of the policy. There are many policy terms in this scheme like the customer can buy a policy for a period ranging from 12 years, 13 years, 14 years to 33 years, 34 years, 35 years. In General Endowment Life Insurance Plans, the policy premium has to be deposited for the period for which the customer selects the policy.
Limited Premium Payment Endowment Plan:
Limited Premium Payment Endowment Plans offer limited options for choosing the Policy Term. For example, the customer can choose a policy for a term of 15 years, 20 years or 25 years. Term selection options may vary in different Limited Premium Payment Endowment Plans.
But the customer does not have to Pay the Premium in these plans for the entire Policy Term.
Whole Life Endowment Life Insurance Plan:
In Whole Life Endowment Life Insurance Plans, the policy term is till the age of 80 years of the customer. In these plans, the customer also has to pay the premium of his policy till the age of 80 years.
In some formats of Whole Life Endowment Life Insurance Plans, the policy term is till the age of 80 years of the customer but the customer can choose the option of depositing the premium as per his wish.
Conclusion:
If you are a customer and want to buy an Endowment Life Insurance Policy. Then, I am confident that you will be able to choose the Best Endowment Life Insurance for yourself based on the information given in this article.
But there is still a lot of important information regarding Endowment Life Insurance, we would advise you to get this information before reaching any decision. Click on “Next Page” button below to get further information about Endowment Life Insurance.
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