These plans combine life insurance with the benefit of savings. They provide financial protection against death during the policy term and a lump sum payout at the end of the policy term in case of survival.
If the policyholder survives until the end of the policy term, they receive the sum assured along with bonuses (if applicable), which serves as a savings/investment payout.
In case of the unfortunate death of the policyholder during the policy term, the sum assured along with the applicable bonuses is paid to the nominee.
LIC’s endowment plans often come with a bonus feature. LIC declares reversionary bonuses (usually annually) based on the company's profits. These bonuses are added to the policy and increase the payout upon maturity or death.
Premiums can be paid in various modes: monthly, quarterly, half-yearly, or yearly. LIC also offers a Single Premium option, where the premium for the entire policy term is paid upfront.
After a specified period, most endowment policies offer a loan facility, allowing the policyholder to borrow against the policy's surrender value.
