Looking for an insurance than most of people flock towards endowment plan which helps people get money on maturity of the plan. The insurer gets the benefit of insurance cover with certain amount being paid at the completion of plan if the insurer happens to live beyond the insured age.

Endowment Assurance Policy has been designed keeping in mind the mentality of Indian population who always want to get something out of their investments. People of age group above 18 years and with a maximum age of 65 years can apply for this plan.

The lump sum received can be reinvested in annuity to provide pension or can be utilized for any purpose by the person and thus people use the same for their retirement planning least realising that investment and insurance are two different components. Have a look at worst seen where you have to pay the premium even if the insurer has died.

Verdict

We are dead against these type of policies which mix insurance with investment. Just as a simple process go for term insurance plans as it is cheaper and you get higher insurance.

Thus, these policies are very popular with retirement planning. As with endowment policies, the premium is payable for selected number of years.

Endowment assurance policy limited payment, Endowment assurance policy table 14, lic endowment assurance policy t no 14