We offer details of leading life insurers and various life insurance policies in India, such
as endowment life policy and whole life policy.
This type of plan is also known as
an endowment life policy.
The problem with all insurance products, whether it is
an endowment life policy or a householder policy or even a family floater health policy, is the complexity of terms and conditions.
If a policyholder has paid premiums on their policy for a lower limit of 3 years, they have the option of converting
their endowment life policy to a paid - up endowment policy.
Term life insurance, the type included in
an endowment life policy, is inexpensive if you're young and healthy.
For example, you can take a loan out against
your endowment life policy, and if you do, your benefit will be reduced by the outstanding loan amount and the interest you owe on that loan.
If you broke up your monthly payment to
the endowment life policy and used part of it for college savings and part of it for term insurance, you would get more college savings and more insurance for the same amount of money.
The endowment life policy has a maturity period.
If you are dissatisfied with
your endowment life policy, but do not want to surrender it, you discontinue paying premiums on the policy.
If you have paid premiums for at least 3 years on
your endowment life policy, you have the option to convert your policy to a paid up endowment policy.
If the premium paying term of
the endowment life policy is more than 10 years, then you have to surrender the policy only after 3 years.
This is possible only if
the endowment life policy has a premium paying term (time you pay the premium), less than 10 years.
Guaranteed Bonus:
The endowment life policy pays a guaranteed bonus (% of the sum assured), for the first 5 years of the policy.
You can surrender
your endowment life policy only after 2 years of holding the policy.
You have learnt in the previous newsletter how
an endowment life policy works.
You pay the premium for
the endowment life policy and an additional amount for the rider.