1. What is endowment plan and should I buy it?
An endowment plan is a form of life insurance that combines the benefits of protection and savings into a single policy. Apart from providing life insurance, endowment plans help the policyholder save regularly and provides a maturity amount at the end of policy period. Opt for an endowment plan when the goal is to create a corpus to meet your long-term financial goals and also provide financial security to your loved ones against any unforeseen situation. Use an endowment policy calculator to evaluate returns on your investment.
2. What is reversionary bonus?
A reversionary bonus is an added sum over and above an insurance policy’s total amount, being payable on the maturity of the plan or death of the insured. A reversionary bonus is generally declared as a percentage of the total sum assured in the policy.
3. What is money back plan?
A variant of endowment plan where a certain percentage of the total sum assured is paid at regular intervals of time, rather than a single lump sum payable on maturity of the policy.
A money back plan is considered ideal for risk-averse individuals who want to fulfill their various life goals over the policy period while also availing the benefit of life insurance.