Endowment plan is a combination of insurance and investment options. It offers three benefits to the policyholder under a single plan - savings, insurance and tax benefits. This policy, not only provides protection to the insured but also helps the policyholder save some money on regular basis. The endowment plan promises a Risk free and guaranteed returns on specified date as long as the premiums are paid. It is one of the most disciplined Method of saving money for all your future financial needs.

An endowment plan also offers Wide range of additional riders, which the policyholder has the option to choose from. Some of these riders are:-

• Accidental death benefit
• Accidental permanent disability
• Total & partial disability benefit
• Hospital cash benefit
• Family income benefit
• Waiver of premium benefit
• Critical illness benefit, etc.

Endowment plans are classified into 2 parts:

Endowment without profits: In this plan, if the policyholder survives the policy term, he receives the assured corpus at the time of maturity. But if the policyholder does not survive the policy term, the nominee / beneficiary will get the assured amount.This plan does not offer any bonus On the amount paid.

Endowment with profits: in this plan, if the policyholder survives the policy term, he receives the assured corpus along with bonuses at the time of maturity. But if the policyholder does not survive the policy term, the nominee/ beneficiary will get the assured amount as well as the bonus for the number of years the policy was in effect.

Let us look at few key benefits of buying an endowment plan:

• Low risk plans that Offers guaranteed returns to the policyholder.
• In the case the Policy holder dies the assured amount is given to the nominee/ beneficiary.
• It provides a financial protection to your loved ones
• It is a goal based savings which Helps to create corpus to fulfill your needs
• Tax benefit under section 80c & 10(10d) of the income tax act, 1988
• It also provides the option obtaining a loan against the policy in case of any emergency.