Endowment policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy. It is this feature - the payment of the endowment to the policyholder upon the completion of the policy’s term - which rightly accounts for the popularity of endowment policies.
Typically, one’s responsibility for the financial protection of the family reduces significantly once the children are grown up and independently settled. The focus then shifts to managing a smaller family - perhaps only oneself and one’s spouse - after retirement. This is where the endowment - the original sum assured and the accumulated bonus - received back comes handy. You can either use the endowment amount for buying an annuity policy to generate a monthly pension for the whole life, or put it in any other suitable investment of your choice. This is the major benefit of an endowment policy over a whole life one.
Endowment to age 60 policy from Max New York Life Insurance
On death of the life insured: Sum Assured plus accrued bonuses plus terminal bonus (if any).
On maturity (attaining age 60): Sum Assured plus accrued bonuses plus terminal bonus (if any).
On Surrender of Policy: Surrender value.
Bonus: From 3rd policy year, we will declare bonuses every year.
You are entitled to the following tax benefits under Income Tax Act 1961: Your premiums are eligible for deduction u/s 80C up to Rs.100,000/- every year.
Your DD rider premiums are eligible for an additional deduction u/s 80D up to Rs.10,000/- every year.
Your claim amounts (from death, on maturity or through surrenders) are eligible for tax exemption u/s 10(10D).
Endowment to age 60 policy is a quasi retirement policy that helps you to save primarily for your retired life. It will mature on the policy anniversary after your 60th birthday, and enables you to use the maturity proceeds in many ways viz. Purchase a pension from any life insurance company
Purchase that house in your hometown where you want to lead your retired life
Pay for your child’s higher education or marriage and also provides you with an insurance cover to protect your family from financial uncertainties in case of your untimely death before reaching age 60.
This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time.
Premiums are usually payable for the selected term of years or until death if it occurs during the term period.
Being an endowment assurance policy, this plan is apt for people of of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise.
The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time.