Combine Elements of Life Insurance and Investment with Endowment Policy Insurance
Endowment Policy Insurance: A Comprehensive Guide What is endowment policy insurance? An endowment policy is a type of insurance plan that combines elements of life insurance and investment. It provides financial protection to the policyholder and their beneficiaries while also offering an opportunity to accumulate savings over a specific term. This type of insurance policy is designed to cater to individuals who want to secure their future and also build a corpus for various life goals like higher education, marriage, or retirement. How does endowment policy insurance work? When you purchase endowment policy insurance, you are required to pay regular premiums over a fixed term. These premiums are then invested by the insurance company in a mix of bonds, stocks, and other investment instruments. At the end of the policy term, the policyholder receives a lump sum, which consists of the sum assured and the accumulated returns on the investments made by the insurance company. Benefit...