This document provides information about endowment policies offered by various insurance companies. It defines an endowment policy as a type of life insurance that pays a lump sum amount after a specified term or upon death. The document then summarizes key features of endowment policies including maturity benefits, bonuses, tax benefits, and riders. It also describes specific endowment plans offered by companies like LIC, TATA AIG, Aviva, Kotak, and Birla Sun Life.

1. Presented To:– Prof. Uttam Kumar
12/17/2012 Endowment Policy 1

2. Presented By:-
Sudhir Singh
Pooja Singh
Rajput
Nitin Avinash Abhay Saurabh
Mishra Azad Tripathi
12/17/2012 Endowment Policy 2

3. What is Endowment Policy?
 Type of life insurance policy which is designed to
pay a lump sum after a specified term (on its
'maturity') or on death.
 Typical maturities are 10, 15 or 20 years up to a
certain age limit.
 Policies are typically traditional with-
profits or unit-linked
 Endowment plans are priced a little higher than
term plans because of maturity benefits.
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4. Cont…
 Additional Bonuses:- Generally, Endowment plans have
two types of bonuses:
 Reversionary bonus:- Also called regular bonus, this is
annual bonus which depends on the performance of the
insurer and is added to the fund every year payable at the
end of policy period.
 Terminal bonus:- An additional loyalty bonus offered by
the insurer at the end of policy term
 Tax Benefits:-
 Under Section 80C you can avail tax benefit, yearly
premium (not more than 1lac) will be deducted from
taxable income.
 Under Section 10(10D) death claim is completely tax free.
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5. Cont…
 The Good:-
 Endowment plans have both death and survival benefits.
 The bonuses accumulate over time to give good maturity
lump sum
 The Bad:-
 Endowment plans are priced higher than term plans.
 Policybazaar Judgment on Endowment Plans:- Endowment
plans is for people looking for survival benefits along with
death benefit. Though priced higher, it is worth it to buy
endowment plans since its no profit no loss equation as
premiums paid are returned in form of survival benefits.
And you get insurance life cover which is important thing to
have
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6. Type of Endowment Policy
 Traditional With Profits Endowments
 Unit-linked endowment
 Traded endowments
 Full endowments
 Low cost endowment (LCE)
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7. Cont…
 Traditional With Profits Endowments:-
 There is an amount guaranteed to be paid out called the sum
assured and this can be increased on the basis of investment
performance through the addition of periodic (for example
annual) bonuses.
 Regular bonuses are guaranteed at maturity and a further
non-guarante bonus may be paid at the end known as
a terminal bonus.
 Unit-linked endowment:-
 Unit-linked endowments are investments where the premium
is invested in units of a unitised insurance fund.
 Units are encashed to cover the cost of the life assurance.
 Policyholders can often choose which funds their premiums are
invested in and in what proportion.
 Unit prices are published on a regular basis and the
encashment value of the policy is the current value of the
units.
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8. Cont…
 Traded endowments:-
 Traded endowment policies (TEPs) or second
hand endowment policies (SHEPs) are traditional
with-profits endowments that have been sold to a
new owner part way through their term.
 The TEP market enables buyers (investors) to
buy unwanted endowment policies for more than
the surrender value offered by the insurance
company.
 When a policy is sold, all beneficial rights on the
policy are transferred to the new owner.
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9. Cont…
 Full endowments:- A full endowment is a with-
profits endowment where the basic sum assured
is equal to the death benefit at start of policy
and, assuming growth, the final payout would be
much higher than the sum assured.
 Low cost endowment (LCE):- A low cost
endowment is a combination of an endowment
where an estimated future growth rate will meet
a target amount and a decreasing life insurance
element to ensure that the target amount will be
paid out as a minimum if death occurs.
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10. Endowment Assurance
Overview, Benefits and Suggestion
LIC India
Jeevan Anand Plan
Table - 149
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11. Endowment Assurance and Whole Life plans
Features
Jeevan Anand Plan : Table 149 J
Plan Type Regular E
E
Category For Whole Life And Good Returns
V
Guarantee Yes + Bonus A
Insurance Cover Maturity at 75 N
Death Benefit The Sum Assured along with the vested bonuses is payable on death in a lump sum.
A
Guaranteed Surrender The policy may be surrendered after it has been in force for 3 years or more. N
Value he guaranteed surrender value is 30% of the basic premiums paid excluding the first
A
year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit
are also excluded.
N
D
Premium Waiver Option No
Auto Cover No T
Revival of Policy No A
Loan On the Policy Yes
B
L
Accident Benefit An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on E
death due to accident up to age 70 of life assured. In case of permanent disability of
the life assured due to accident this additional Sum assured is payable in installments.
1
Rebate on the premium Depending on the amount of the sum assured chosen and the plan duration 4
9
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12. Endowment Assurance and Whole Life plans
Benefits
Jeevan Anand Plan : Table 149 J
Min & Max Entry Age 18 years , 65 years
E
E
Min & Max Policy Term 5 to 57 years V
Min & Max Maturity Age 75 years is the Maximum Maturity Age A
Min & Max Sum Assured Rs 100000.00 Min, No Limit for Max N
Premium Paying Term Pay till the Premium Paying term for the Endowment Term. For Whole life the Policy A
Covers till age 70. N
Loan Availability Yes A
Survival Benefit The policyholder will receive the sum assured and all the accumulated bonuses. A final N
additional bonus, if any, may also be paid out. In such a case, the risk cover for the D
policyholder continues till death, on which an amount equal to the sum assured will
be paid out further. However, there will be no bonus component attached to the T
payout on death after the premium paying term has ended. A
Rebates in Premium 2% if paid Yearly, 1% if Paid Half Yearly B
Suicide Clause No Suicide Clause L
E
Accident Benefit Rider The plan also incorporates an accident benefit rider. However, the cap on the amount
is Rs 5 lakh. The premium for the rider is built in to the basic plan itself. The amount
under the rider will be paid if the policyholder dies in an accident. This payout is over 1
and above the basic sum assured. The maximum age at which this rider ceases is 70. 4
Should the policyholder suffer permanent disability because of an accident, the sum 9
assured under this rider will be paid out in installments.
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13. Endowment Assurance and Whole Life plans
Recommendation
Should I Take This YES. Go for this plan. No other Company (Insurance Provider) has
Plan? this type of product. This is an Endowment plan with Whole Life.
Do not get tempted with the ULIP Plans which talk about high
returns. This plan ( Jeevan Anand) is the BEST, and highly
Recommended plan.
Yes, the Premium is little bit more compared to other plans.
Is this plan This Plan has got double offer, and secures till age 70. This has
Costlier Compared Endowment and Whole Life. Only Whole Life plan which pays
to others? money. Compare to traditional Term Life, no plan gives money.
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14. TATA AIG Life Insurance
 A new unit-linked endowment insurance plan
called Gyan Kosh - to secure their children’s
education, important milestones of life like
marriage, and provide funds for setting up a
business.
 Assure Educare - Assure Educare is an
endowment policy designed to give the child the
education he or she wants. Two plans:-
 Educare 18
 Educare 21
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15. Cont…
 Survival benefits:-This plan guarantees
payment of 10 percent of the sum assured at
maturity or on death .
 Bonus:- Revisionary and Terminal bonuses is
offered by the company.
 Riders:- The Payer Benefit Rider waives off all
future payments for this policy in the event of the
unfortunate death of the parent.
 Tax Benefits:- Premiums paid for this policy are
eligible for tax returns as per current Income Tax
rules.
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16. Cont…
 Assure Security and Growth Plan:- This is an
Endowment policy that aims at giving you safety
and returns.
 Eligibility:- The duration of the policy can be 10,
20 or 30 years.
 What's Special?
So in case of death, your dependants get the
sum assured.
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17. Cont…
 And what are the extras?
 A guaranteed 10 per cent bonus after the 10th
policy anniversary.
 Reversionary bonus projected at an annual 5 per
cent .
 And a Terminal bonus paid on maturity or death
 Tax Benefits, Riders:- Premiums paid are
eligible for tax benefits under Section 88.
And you can attach Term, Accident and Disability
riders to this policy for added protection.
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18. AVIVA Life Insurance
 Life Saver (Flexible Endowment savings
Plan)
 Lifesaver is a unitized fixed term, protection cum
savings plan.
 Lifesaver can be purchased on any life between
18 to 65 years .
 The minimum premium is Rs.3,500 for yearly,
Rs.2,000 for half-yearly, Rs.1,000 for quarterly
and Rs.350 for monthly frequency of premium
payment.
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19. Cont…
 Additional Single Premiums:- Lifesaver also
offers you the flexibility of making lump sum
investments through additional single premiums.
 Riders:- Accidental Death & Dismemberment
(AD&D)
 Critical Illness & Permanent Total Disability
(CI&PTD)
 Rider cover expires at 60 years of age.
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20. Cont…
What do I get on maturity?
 Upon survival, at maturity the policy value is paid
to you.
 The policy will become paid-up with zero sum
insured and you may avail the policy value as and
when required.
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21. Kotak Life Insurance
 Kotak Life Endowment Insurance Plan is a
Traditional Participating Endowment.
 How it works
 In this plan, premiums are paid for the Premium
Paying Term as selected at the beginning of the
Policy Term.
 The premiums, after deduction of charges, are
deposited in the Accumulation Account along with
Bonus at the end of each year
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22. Kotak Endowment Insurance Policy
(In years) Minimum Maximum
Policy Term 10 30
Premium Payment Term 3,5,7,10 and 15
Entry Age of Life Insured 18 65
Age at Maturity - 75
Regular Premium(in Rs. ) 4000 No Limit
Payment modes Yearly, Half-Yearly,
Quarterly and Monthly
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23. Birla Sun Life Insurance
 Policy Term:- 10, 15, 20, 25 and 30 years
 Savings Date:- Same as policy term
 Entry Age:- 1 year to 65 years, subject to
minimum age of 18 on Savings Date.
 Basic Premium:-
 Minimum Rs. 25,000 p.a. if paid annually
 Minimum Rs. 30,000 p.a. if paid monthly
quarterly or semi-annually
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24. Cont…
 Pay Term:- Short pay – 5, 10, 15, 20 years |To
Savings Date
 Top-up Premium:- Minimum Rs. 5,000
 Premium Payment Option:-
Monthly, Quarterly, Semi-annually or Annually
 Enhanced Sum Assured:- Minimum Rs. 50,000
Entry Age 18 to 65 years, subject to maximum
age of 75 on Savings Date.
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