What is a non-participating endowment policy?

Some life insurers, including LIC, have recently launched non-participating, non-linked endowment policies. Unlike participating policies, which announce annual bonuses, these plans offer assured returns. They come with policy tenures of 10-20 years and offer either a fixed lump-sum amount at the end of the tenure or pre-decided pay-outs at regular intervals. The maturity amounts or regular pay-outs, which are tax-free, depend on the premium you pay. Annualised returns typically range from 5.5-6 percent. On the flipside, recurring premium payments over the long-term and high surrender charges in case of early exit act as dampeners.