An endowment plan is a life insurance policy that offers the advantages of an insurance policy combined with a savings plan. Here, you, the policyholder, can save a lump sum over the policy tenor and get that amount on maturity.
An endowment plan’s simplicity and added benefits have made it an attractive savings scheme for many.
5 Best Endowment Policies to Purchase in 2023
Here are a few endowment policies that individuals can consider buying in 2022:
1. HDFC Life Sampoorn Samridhi Plus Plan
HDFC extends this endowment plan for individuals to grow wealth and plan a legacy. The various benefits of HDFC’s endowment plan include:
- Individuals can choose between two options – endowment and endowment with whole life (life coverage of up to 100 years).
- Multiple premium payment methods include Internet banking, credit card, auto-debit facility, and bank check.
- As per the requirement, one can opt for a policy term of 15 – 40 years.
- Guaranteed additions of up to 5% of the Sum assured on maturity for the initial five years.
- Depending upon the endowment policies, investors will receive –
Endowment – Accrued Guaranteed Additions + Sum Assured on Maturity + Interim Bonuses (if any) + Accrued Reversionary Bonuses + Terminal Bonuses (if any).
Endowment with a whole life – Sum Assured on Maturity on survival up to 100 years + Benefit under Endowment Option.
- Upon the death of the policyholder, beneficiaries will receive the higher Sum of –
Accrued Guaranteed Additions + Sum Assured on Death + Interim Bonus (if any) + Accrued Reversionary Bonuses + Terminal Bonus (if any), or 105% of the entire premium payment.
2. Bajaj Allianz Save Assure
Bajaj Allianz’s Save Assure scheme secures the policyholder and their family with a guaranteed sum of 115%. Here are a few other benefits of this endowment plan:
- One can choose between two policy terms – 17 years and 15 years.
- Individuals do not need to pay any premium for the last five years of the policy.
- One can get the option to take policy benefits in monthly installments stretched to a period of 5 to 10 years.
- Individuals can enhance their coverage by opting for rider benefits.
- Under maturity benefit, a policyholder gets 115% of the Sum assured on the maturity date. However, all due premiums must have been paid to avail of this benefit.
- Upon the policyholder’s death, the entire Sum assured will be payable to the nominee of the deceased.
3. Bharti AXA Life Super Endowment Plan
Bharti AXA’s endowment plan extends the following benefits:
- Policyholders can choose between ten different policy terms and premium payment combinations.
- One can extend the life cover by paying an additional premium. However, this option is available during the policy’s inception.
- Policyholders get survival benefits of up to 50% of the Sum assured.
- If the insured survives till maturity, they will get the entire Sum assured.
- In case of the policyholder’s death, nominees will get the Sum assured where the amount is highest of 11 times annualized premium, 105% of all premiums, absolute Sum assured with guaranteed additions, or sum assured on maturity as per the policy.
4. ABSLI Vision Endowment Plus Plan
Aditya Birla Capital’s endowment plan provides secured savings and comprehensive financial protection. A few benefits of this plan are –
- Policyholders get regular bonuses to increase their savings.
- Policyholders can pay premiums either monthly, quarterly, annually, or half-yearly.
- If the insured person dies, nominees shall be eligible to receive death benefits as the Sum assured on death, accrued regular bonuses on the day of death, and terminal bonuses.
- If the insured survives till policy maturity, they will get a sum assured on maturity, accrued bonuses, and terminal bonuses, if any.
5. Kotak Premier Endowment Plan
Kotak’s endowment plan features the following benefits:
- First, one gets guaranteed additions at 5% p.a. of the Sum assured during the initial five years.
- Policyholders can earn a bonus from the 6th year onwards.
- Additional protection from a suite of rider options.
- Policyholders get the basic Sum assured on maturity, accrued guaranteed additions, and accrued Reversionary Bonuses.
- The nominees get minimum death benefits, Reversionary Bonuses, and accrued guaranteed additions on death.
If you plan to invest in one of the endowment policies, you can consider visiting leading financial platforms extending a range of endowment policies. You can also get details like premium amount, claim settlement ratio, and others and compare them to find a suitable option.
Like many other life insurance plans, various endowment policies have been available in the market recently. Choosing a suitable endowment policy will depend on several factors, including financial needs, risk management, and income.