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Endowment
Policy
An endowment policy is a life
insurance contract which, apart from covering the life of the
insured, helps the policyholder to save regularly over a specific period of
time so that he/she is able to get a lump sum amount on maturity of the policy. These are the group of policies. It is
opposite from whole life policy. This maturity amount can be
used to meet various financial needs such as funding one's retirement, children's
education, marriage or buying a house.
Types
of Endowment Policy
1. Ordinary
Endowment Policy: under this policy, premium is paid for a specific period of
time. Payment is made after expiry of period or in case of death. It is a very
popular scheme. It is a insurance as well as an investment (we get interest
also with the premium amount).
2. Limited
payment Endowment Policy: In this, single premium is included. For example we
take policy for 20 years or total amount 2,00,000 rupees. If a shareholder
wants to pay whole amount at one installment than company gives some benefit to
the shareholder.
3. Deferred
Endowment Policy: in case of death of insured during the contract period
payment of premium would be stop but amount of claim is paid on actual due
date(which is opted by insured in a contract). If nominee is also died than
insured person should be disclose in his will that after nominee’s death who
will be the receiver of that amount.
4. Pure
Endowment Policy: No amount of claim is paid by insurer in case of death during
the contract period. Amount is paid only when he is alive during contract
period
5. Double
Endowment Policy: In case of death of insured, insured amount paid by insurer
or if insured person is alive upto the maturity date of the contract than
double amount of insured value is paid by the insurer.
6. Joint
Life Endowment Policy: This policy is suitable for spouse, partnership firm. Under
this policy, two life are secured at a one time. If any one dies, insurance
company pay full amount to other person. Premium is determine by calculate both
person’s age difference. Ex. Jeevan Sathi, Jeevan Mitra.
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