Life Insurance Policies in India

Endowment Insurance Policy

Endowment insurance are policies that cover the risk for a specified period and at the end the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy. The Endowment insurance policies work in two ways , one they provide life insurance cover and on the other hand as an vehicle for saving. They are more expensive than Term policies and Whole life policies. Normally the bonus in calculated on the sum insured but the only draw back is that the bonuses are not compounded. Endowment insurance plans are best for people who do not have a saving and an investing habit on a regular basis. Endowment Insurance Plans can be bought for a shorter duration period.

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