5 Key Benefits of Endowment Plans

What Are the Benefits of Endowment Policy?

FAQs about Benefits of Endowment Plans

hat is the maturity benefit of an endowment plan?

Maturity benefit of an endowment plan refers to the amount you will get if you survive the term of your policy. Generally, as a maturity benefit you will get at least the guaranteed sum as agreed on during the purchase of your policy. However, the loyalty benefit and yearly additions can increase the total value of maturity benefit.

Can you withdraw money from your endowment plans?

Yes, there are some endowment policies that allow policyholders to withdraw funds on a yearly basis. A withdrawal will decrease the amount of your returns and final maturity amount. However, all endowment policies do not come with this option.

Which documents do I need to submit while purchasing an endowment plan?


You need to submit the following documents while purchasing an endowment policy:

  • Photo Identity Proof (Passport, voter ID card, Aadhaar card, etc.)
  • Income Proof (Salary statement)
  • Medical examination report

Are endowment policies good investment instruments?

Endowment policies can be safe and sound from the investment perspectives. You can get a significant return over a long time horizon. You can also keep your money invested in an organised and disciplined way. Plus, the life cover is an added advantage of this policy.

Can I add riders to broaden the coverage of my endowment plan?

Yes, you can add riders with your endowment policies at only a little extra cost to enhance the overall coverage. You can purchase riders like accident cover, critical illness cover, etc., on top of your plan, considering your requirements. At a slightly extra premium, you can significantly raise the financial protection of you and your family.