Endowment Policy India
Endowment is a life time policy in which the assured sum is come back to the policy holder after the specific time period along with the bonuses except in case of the policy holder death.
This policy is liked all around the globe as well as in India also. The design of the policy is to provide the benefit for living but it also cover the life protection policy.
The people admired this policy because it is not only an investment but a whole life policy also.
In India, endowment policies become a big business because these policies help to generate the money as well as the money circulate in the market, and market value goes high. These companies earn so much profit through stock exchange because the shares of these companies sell in very high price in the market.
The endowment policy in India is very popular nowadays because it is different from all the other policies, which are available in the market. The premium of the policy is to payable for the full term in spite of that policyholder death.
The policy has one draw back that its premium rate is high but bonus rate is low. However, it has also one big attraction that they provide return in installment when the term ends. The big advantage of this policy is that you can buy an annuity policy after the end of the term of endowment policy and the annuity policy gives you the monthly income for whole life.
The policy gives so many benefits to its holder, it helps you in case of any disability, which occur by an accident and you become totally disable before reaching the age of 70, and the policy you hold is full force. Then policy gives the benefit and you do not have to pay any further installment of the policy.
There is another thing, which you get at the end of the term of policy is profit or bonus. However, this is possible only when your policy is with profit. In case of any mishap such as death of policyholder, the company will pay full sum amount plus bonus. On the other hand, you got back the full payment, bonus and final bonus if any.
The policy term starts from 5 to 55 years and mode of the payment is monthly, quarterly, half yearly, and yearly and salary saving scheme. It depends on you, which way of installment suits you and more convenient.