What is an Endowment Policy?

Endowment policy are a type of life insurance policy, which provides the combined benefit of insurance coverage and savings.

Endowment plan helps the insured to save regularly over a particular time period in order to avail a lump-sum amount at the maturity of the policy.

The maturity amount is paid in case the insured survives the entire tenure of the policy.

However, in case of an unfortunate demise of the insured during the policy tenure,

a sum assured amount as death benefit along with bonus (if any) is paid to the beneficiary of the policy.

Besides this, endowment policy also helps to create financial cushion for future so that one can meet the long-term and short-term financial objectives of life.

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