Endowment Policy

The product has both a death and a survival benefit component. Endowment is primarily a savings programme, which is protected by provision of insurance against the contingency of premature death. Its appeal to customers lies in the fact that it is an instrument that lends certainty to one’s personal financial plans by linking insurance to one’s savings programme. Endowment also offers a safe and compulsory method of savings accumulation. While prudent investment and asset liability management lends safety, the semi-compulsory nature of premiums provides the incentive to save.

People buy endowment plans as a sure method of providing against old age or for meeting specific purposes like having an education fund at the end of say 15 years or a fund for meeting marriage expenses of one’s daughters.