Best Endowment Plans in India 2024

05 January 2024
7 min read
Best Endowment Plans in India 2024
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An endowment insurance policy is for you if you want a single insurance policy that can offer you and your family financial security in an unexpected incident and assured returns to secure your long-term financial goals.

Understanding Endowment Policy

Endowment policies are a form of life insurance policy that offers both insurance coverage and savings.

Endowment plans allow the insured to save regularly over a specific time frame to receive a lump-sum payment at the policy's maturity. The maturity amount is paid if the insured survives the whole policy term.

However, if the policyholder dies during the policy's term, the beneficiary receives a sum assured amount as a death benefit and any bonus (if any). Apart from that, endowment policies develop a financial cushion for the future, allowing one to achieve long-term and short-term financial goals.

Best Endowment Plans in India 2024

Below listed are some of the top endowment plans to buy in 2024-

Endowment 

Policies

Policy 

Term

Min 

Sum Assured

Max 

Sum Assured

Premium 

Paying Term

Aviva Dhan Nirman Endowment Policy

18 - 30 years

Rs20,0000

Rs10,00,0000

14 - 18 years

Bharti AXA Life Elite Advantage Plan

10-12 years

Depending Upon the Premium Amount

N/A

Five years for a 10-year policy

7-12 years for a 12-year policy

AEGON Life Premium Endowment Policy

Policy Term- 10 Years

10x of annual premium

N/A

Premium Paying Tenure: 8 years

Exide Life Jeevan Uday Plan

10, 15, or 20 years

Rs. 42,000

No Limit

10 years

BSLI Vision Endowment Plan

20 years

Rs. 1,00,000

No Limit

7-10 years

Factors to Consider Before Choosing Endowment Plans

Here are some important factors to note before selecting an endowment plan-

  • Your Needs

When evaluating different endowment plans from various insurance firms, you must first assess your insurance requirements. Most people purchase a life insurance policy with an amount assured of Rs. 1 crore.

Although this is a substantial sum that can assist your family in meeting their regular expenses after your demise, you must undertake the calculations and determine a suitable sum assured based on your specific needs.

It is essential to assess your responsibilities, the number of financial dependents, the family's lifestyle, etc., and then choose a coverage amount that will allow the family to remain financially independent even if you are not around.

  • Premium Amount

Selecting a plan that meets your budget is as important as choosing the right coverage to meet your family's financial needs.

The policy's premium must be cheap. There is no use in purchasing insurance with extensive coverage if you cannot pay the price. If you fail to pay the premium, your insurance will immediately lapse, and your family will no longer be covered.

Endowment plans typically have a more significant premium than pure protection plans, such as a term insurance policy, for the same assurance. It is primarily due to the investment-cumulative-savings component of an endowment policy.

When you pay the premium for an endowment plan, a portion of the premium is invested in various asset types to generate wealth. As a result, you must understand the premium payable before purchasing an endowment plan.

In addition, the premium must be within your budget, and you must be able to pay it consistently throughout the policy's term without jeopardizing your other financial goals and costs.

  • Insurance Provider’s Claim Settlement Ratio

Choosing an insurance provider with a high claim settlement ratio is vital since it reflects an insurance provider's trustworthiness with its consumers.

The insurance company's claim settlement ratio displays the number of claims paid concerning the total number of claims received.

  • Periodic Payout

Another critical aspect when buying an endowment life insurance policy is the provision for periodic payouts. Receiving payments at regular intervals throughout the policy term ensures that you can meet your short-term financial goals and commitments, such as putting a down payment on a car loan or prepaying a home loan, for example.

Most endowment plans now offer period payouts and let policyholders decide the mode and frequency of payout.

Some plans, for example, pay 25% of the sum promised every four years. When signing the policy paperwork, be mindful of the payout terms.

  • Benefits Such As Policy Loans and Partial Withdrawals

Most endowment policies include additional benefits such as partial withdrawals and policy loans.

You must regularly check to see if your endowment plan has such perks.

Policy loans are ordinarily available after paying at least two years' premiums, and the partial withdrawal facility generally becomes operational after the plan's lock-in term is over.

Top Endowment Policies in India: Overview

Here we have listed some of the best endowment plans to buy in India online and offline. Understand the basic features offered by the top endowment policy here-

1) Aviva Dhan Nirman Endowment Policy

  • After the premium payment term ends, this policy provides guaranteed annual payouts.
  • At maturity, the policyholder receives a guaranteed lump sum payout.
  • The policyholders' savings rise thanks to the Simple Reversionary Bonus, available at the end of the first policy year.
  • The policy provides comprehensive protection based on the Sum Covered chosen by the client.

2) Bharti AXA Life Elite Advantage Plan

  • It is a non-participating plan with both limited and regular premium payment opportunities.
  • Guaranteed Yearly Payouts guarantee an uninterrupted supply of funds.
  • Assured Yearly Payouts are a proportion of the Amount Assured and are paid from the end of the term until the 19th year, depending on the policy term. At the end of the 20th year, the Sum Guaranteed is fully paid.
  • Yearly payouts are available in lump sums reduced at 5%.

3) AEGON Life Premium Endowment Policy

  • It is a participating plan with premium payment options, including single, regular, and limited pay.
  • During the Premium Paying Period (PPT), Guaranteed Additions are provided.

4) Exide Life Jeevan Uday Plan

  • Exide Life Jeevan Uday Plan is an Exide Life Insurance Company Limited savings plan. This plan provides guaranteed advantages such as life insurance for the whole policy term, tax-free maturity benefits, extended life insurance, and a loan policy option. No medical records are required to buy this plan.
  • Exide Life Insurance Company Limited has been rated one of India's most dependable life insurance providers.
  • Exide Life Insurance agents in over 50,000 places throughout India serve over 15 lakh consumers.
  • The company has a solid traditional insurance portfolio distributed through Banc Assurance, Agency, and Corporate Agency & Broking.

5) BSLI Vision Endowment Plan

  • It is a participating plan with a limited premium payment option.
  • There is an Accidental Benefit Rider included.
  • A simple reversionary bonus, an interim bonus, and a terminal bonus increase the corpus.

Why Should an Individual Buy an Endowment Policy?

Endowment policies are a systematic way to save money for future needs. Another benefit is life risk coverage, which can support the policyholder's family and other dependents if something terrible happens.

The returns may be lower, but they are risk-free in the case of a specific sum assured. Tax breaks are also available under certain conditions.

Risk-averse investors, therefore, prefer endowment plans. Apart from providing life insurance to the insured in the event of an unforeseen tragedy, it also provides the maturity amount to the policyholder if they survive the policy period.

Conclusion

An endowment plan is a solid investment option to help you plan for many financial goals, such as paying for your child's education/marriage or saving for retirement.

It allows you to collect a substantial sum without time commitments or fund management activities. Nonetheless, to make an informed and measured decision, you should always review the following pointers before beginning with an endowment plan.

You May Also Be Interested to Know-

1.

The Life and Health Insurance Checklist

2.

Best Term Life Insurance Plans for Senior Citizens

3.

Best Health Insurance Plans in India

4.

Best Term Insurance Plan in India

5.

Best Child Insurance Policies in India

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Himanshu Sinha

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