Jan 06, 2014,13.08 IST
What is endowment plan?
Endowment plan is a combination of insurance and investment. In term plan which is a pure insurance there is no maturity benefit. It means if a person dies during the term of policy then only his beneficiaries will get some money otherwise at maturity, at the end of the term there is no benefit.
In endowment because as I said it is a combination of insurance and investment it means if during the term of policy that life assured dies in such case beneficiaries will get the benefits. Benefits are sum assured under the policy and also if there is bonus or guaranteed returns or something that will also be paid to the beneficiaries.
However if the person survives throughout the term of policy at the time of maturity whatever sum assured plus other benefits in form of interim bonus or vested bonus that will be paid to the person himself who has bought the policy.
Principal Financial Planner
Optima Money Managers