Endowment insurance is a type of life insurance that also works as a savings plan. It gives you life cover and pays you a lump sum of money if you survive the policy term. So, whether you live or die during the policy period, you or your family get money.
This plan is good for people who want to save money for future needs like children’s education, marriage, or retirement. It helps you build a disciplined saving habit because you must pay your premiums regularly.
If you die during the policy term, your family gets the full sum assured. If you live till the end, you receive the savings along with bonuses. These bonuses depend on the profits made by the insurance company.
Endowment plans are more expensive than term insurance, but they give dual benefits—protection and savings. They are popular among middle-class families who want to combine life insurance with long-term goals.
