Endowment life insurance policy will cover over specific period of time. This policy is a kind of both insurance and investment oriented. This is because some certain part of the regular premium gets allocated towards the sum assured and the other portion is allocated towards the administrative expenses of the insurance company selling the policy. Whatever is remaining in premium will get invested and this part is profit oriented.
This policy is best suitable for people of all generations and social groups who wish to protect their families from a financial setback after their death and retirement. The amount assured is payable at the end of the endowment term period if not paid by reason of his death earlier. After completion of endowment policy term period the insured person will receive back some money. This plan is specially meant to meets needs of long-term financial security needs. Endowment life insurance policy offers a disciplined way of saving money for future financial needs. This also has an added advantage which covers great help to the family if something bad happens to the main head of the family. The returns may be lower, but they are mostly risk free in case of guaranteed sum assured.
Benefits of different types of policies depends in their guidelines and objectives. Following are the benefits of having Endowment life insurance policy:
- Profit oriented and low risk plans to invest in since the maturity benefits are guaranteed.
- This can help to avail tax benefits.
- It is best way securing family or providing lifelong security to our loved ones.
- Money back is provided at regular intervals.