1. About Endowment Insurance

Endowment insurance is a type of life insurance policy that provides both death benefits and a savings component. Unlike term life insurance, which only pays out a death benefit if the insured passes away during the policy term, endowment insurance guarantees a lump sum payout to the policyholder either upon maturity of the policy or in case of the insured's demise during the policy term. This dual-purpose nature makes endowment insurance a popular choice for individuals seeking financial protection and savings accumulation.

2. Eligibility Factors

• Age: Typically, individuals must be at least 18 years old to purchase an endowment insurance policy. The maximum age limit varies among insurers and specific policy terms.

• Citizenship: Endowment insurance is generally available to Indian citizens. Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) may also be eligible, depending on the insurer's terms.

• Medical History: Applicants may need to undergo a medical examination to assess their health status. Insurers may consider pre-existing medical conditions during the underwriting process.

• Financial Stability: Insurers may require applicants to meet certain income criteria or provide financial documents to ensure their ability to pay premiums

3. Premium Factors

• Age: The age of the insured is a significant factor in determining the premium amount. Younger individuals typically pay lower premiums compared to older individuals.

• Sum Assured: The sum assured, or coverage amount, chosen by the policyholder directly impacts the premium. Higher coverage amounts result in higher premiums.

• Policy Term: The duration of the policy term also influences the premium. Longer policy terms may result in higher premiums due to increased risk exposure for the insurer.

• Gender: Insurers may consider gender-based mortality rates when calculating premiums, with females often paying lower premiums compared to males for the same coverage.

4. Coverage

• Death Benefit: Lump sum payment to beneficiaries in case of the insured's demise during the policy term
• Maturity Benefit: Guaranteed payout to the policyholder upon policy maturity if the insured survives the term

5. Add on Covers

• Critical Illness Cover: Provides additional financial protection in case of diagnosed critical illnesses, offering a lump sum payout to the insured for medical expenses and other needs.
• Accidental Death Benefit: Offers an additional payout to beneficiaries if the insured's death is caused by an accident, providing enhanced financial security.

6. Exclusions

• Suicide Clause: No benefit is payable if the insured commits suicide within a specified period after policy inception, typically within the first one or two years.
• Misrepresentation: If the insured provides false information or conceals material facts at the time of policy application, the insurer may deny the claim.
• War and Terrorism: Deaths resulting from acts of war, terrorism, or participation in hazardous activities may not be covered.

7. Types of Term Life Plan

• Traditional Endowment Plan: Provides a fixed sum assured and maturity benefit, offering guaranteed returns over the policy term.
• Unit-linked Endowment Plan: Combines endowment insurance with investment opportunities in market-linked funds, offering potential for higher returns but subject to market risks.
• With-Profits Endowment Plan: Offers bonuses or dividends based on the insurer's financial performance, providing additional returns to policyholders.