Test Environment

How Does An Endowment Policy Work?

Endowment policies require you to pay regular premiums. These premiums cover both insurance costs and savings. The policy matures at the end of a predetermined term, at which point you receive a lump sum, or in the event of your demise during the policy term, the sum assured is paid to your beneficiary.

What Do You Mean By Endowment Policy?

An endowment policy is an investment life insurance plan that provides life coverage and savings benefits. It pays out a lump sum either at the policy's maturity or to the beneficiary in the event of the policyholder's demise during the term.

Is LIC Endowment Policy Good?

LIC (Life Insurance Corporation of India) is a reputable insurer in India, and they offer a range of endowment policies. The suitability of an LIC endowment policy depends on your specific financial objectives and goals.

Is an Endowment Policy Taxable?

The maturity proceeds from an endowment policy are typically not taxable. However, it's essential to understand the terms and conditions before buying a policy.

How to Calculate Return on Endowment Policy?

The return on an endowment policy can be calculated by comparing the total maturity amount or death benefit received with the total premiums paid over the policy term. The actual return can vary based on factors like policy duration and bonus additions.

Can I Cash In My Endowment Policy Early?

Most endowment policies have a surrender value, which means you can cash in the policy before the maturity date. The surrender value will depend on the policy's terms and the duration for which it has been in force.

Start Saving Money on Insurance Policy

Compare Life, Health, Car and Two wheeler Insurance rates from top Insurance companies for free.

1,000+ Reviews
Been Here Before?
Get Back to My Quotes