Best Endowment Policies In India

HDFC Life Sanchay Plus is one of the most comprehensive endowment plans, providing four benefit options which one can opt depending upon their life stage and needs. It not just provides life coverage but benefits such as steady and regular income, guaranteed benefit payouts, guaranteed regular income for a fixed term or even lifelong. This plan has useful add-on riders like HDFC Life income benefit on accidental disability rider, HDFC Life critical illness plus rider and HDFC Life protect plus rider.

Key Features

• Maximum Sum Assured: Up to INR 25 lakh
• HDFC Life Sanchay Plus has four benefi­t options, which are:

1. Guaranteed Maturity

• Premium Paying Term: 5, 6, 7, 8, 9, 10 years.
• Policy Term: 10 to 20 years.
• Maturity Benefit Payout: Lump sum amount is paid to the policyholder at the end of the policy term, where the amount payable is equal to the sum assured as well as guaranteed additions.

*Guaranteed sum assured on maturity is total annualized premium payable under the policy during the premium payment term and guaranteed additions are accrued at every policy anniversary from sixth year onwards.

• Death Benefit: The sum assured on death is the highest of:10X of the annualized premium;
   105% of total premium;
   Guaranteed sum assured on maturity; or,
   Absolute amount assured to be paid on death.

2. Guaranteed Income

• Premium Paying Term: 7,8,9,10,11,12 years.
• Policy Term: Seven to 17 years.
• Maturity Benefit Payout: Guaranteed income as a lump sum or regular income as an arrear for a fixed term of 10 or 12 years starting from one year ahead of policy term. (Policy Term + 1)
• Maturity Benefit: This compensation is paid in the form of guaranteed income for a fi­xed term of 10 or 12 years upon payment of all the due premiums. The amount of guaranteed income totally depends upon the premium payment term.
• Death Benefit: The sum assured on death is the highest of:
   10X of the annualized premium;
   105% of total premium;
   Premiums paid accumulated @ the interest of 5% p.a. compounded annually, or
   Guaranteed sum assured on maturity; or,
   Absolute amount assured to be paid on death.

3. Lifelong Income

• Premium Paying Term: 5, 6, 10,12 years.
• Policy Term: Six to 13 years.
• Maturity Benefit Payout: Guaranteed income from one year ahead of policy term, received as arrear till the policyholder turns 99 years
• Maturity Benefit: Provides guaranteed income up to age of 99 years and offers a return of premium at the end of payout period, only upon the payment of all due premiums.
• Death Benefit: The sum assured on death is the highest of:
   10X of the annualized premium;
  105% of total premium;
  Premiums paid accumulated @ the interest of 5% p.a. compounded annually, or
  Guaranteed sum assured on maturity, or
  Absolute amount assured to be paid on death.

4. Long term Income:

• Premium Paying Term: 5,6 7,8,9,10,11,12 years.
• Policy Term: 5 to 13 years.
• Maturity Benefit Payout: Guaranteed income for a fixed term of 25 or 30 years starting from one year ahead of policy term, (Policy Term 1) in arrears.
• Maturity Benefit: Provides guaranteed income up to age of 30 years and offers a return of premium at the end of payout period, only upon the payment of all due premiums.
• Death Benefit: The sum assured on death is the highest of:
   10X of the annualized premium;
   105% of total premium;
   Premiums paid accumulated @ the interest of 5% p.a. compounded annually, or
   Guaranteed sum assured on maturity, or
   Absolute amount assured to be paid on death.

All these plans offer three optional riders:

• HDFC Life Income Benefit on Accidental Disability Rider: Offers extra income benefits which are over and above the sum assured, in any unfortunate event of total permanent disability due to an accident.
• HDFC Life Critical Illness Plus Rider: The policyholder receives the lump sum amount equal to rider sum assured coverage, if diagnosed with any of the listed critical illnesses.
• HDFC Life Protect Plus Rider: The policyholder receives the proportion of the rider sum assured, in case of death or partial/total disability due to accident or diagnosed with cancer.

The Aditya Birla Sun Life Insurance Assured Savings Plan provides everything that one is looking for in an endowment insurance policy. With life cover, it provides other benefits such as joint life cover, death and maturity benefits along with loyalty additions. The policyholder also has the option of enhancing the coverage with very useful four riders including accidental death, hospital cash and critical illnesses. This policy also gives the option to avail loan facility with the minimum amount of INR 5,000 and maximum can be the 80% of the surrender value of the policy.

Key Features

• Maximum Sum Assured: up to INR 25 lakh
• Premium Payment Term: 5,6,7,8,9,10,11 and 12 years.
• Policy Term: Five to 20 years.
• Premium Payment Frequency: Annual/semi-annual/quarterly/ monthly
• Joint life cover option is available which also covers the spouse under the same plan.
• Death Benefit: if death of the life insured happens before 25th policy year, then the benefit payable to their beneficiaries would be:
   Sum assured on death; plus
   Accrued loyalty additions (if any)
• if death of the life insured happens post 25th policy year, then the benefit payable to their beneficiaries would be:
   Higher of sum assured on death or guaranteed maturity benefit; plus
   Accrued loyalty additions (if any)
• Maturity Benefit: Lump sum amount is paid to the policyholder if they survive till the end of the policy term, is payable as: Guaranteed maturity benefit + Accrued loyalty additions

*Guaranteed maturity benefit defined as a certain percentage of total premiums payable over the premium payment term excluding the taxes, rider premiums, underwriting extra premiums.

*Loyalty additions accrue under the policy as a certain percentage of total premiums paid at the end of each policy year till the time of maturity (only if all due premiums are paid).

• Joint Life Protection Benefit: This is to be noted that this option is only available for limited pay policies and this option has to be chosen at the time of purchasing the policy. Here one has the option to cover their spouse also under the same coverage. The coverage for the spouse will be equal to 20% of the Sum Assured of the Primary life insured.
• The policy comes up with various add-on riders:
  1. Accidental death benefit rider plus.
  2. Critical illness rider.
  3. Surgical care rider
  4. Hospital care rider
  5. Waiver of premium rider

The ICICI Prudential Savings Suraksha Endowment Plan is a simple plan for those looking to get life cover along with the financial protection of their long-term goals. The endowment plan helps you grow your corpus through reversionary bonuses, if paid by the company. In case of any unfortunate death of the life assured during the policy term, the sum assured amount along with the guaranteed additions are paid to the beneficiary. This plans also offer maturity and surrender benefits to the policyholder. The policyholder also has the flexibility to choose the premium payment, policy term, sum assured on death. A loan of a maximum of 80% of the surrender value is also available under the plan

Key Features

• Sum Assured: 10X Annual Premium
• Premium payment mode: Annual / half-yearly / monthly
• Premium payment terms: 5,7, 10 and 12.
• Minimum and maximum age at maturity is 18-70 years.
• Death benefit is given to the beneficiary, if the policyholder dies within the policy term. Death benefit is the highest of:
   Sum assured on death plus accrued guaranteed additions and bonuses (vested reversionary and terminal bonus)
   GMB plus accrued guaranteed additions and bonuses
   Minimum death benefit (105% of the total premiums up to the date of death.)
• At the end of the policy term (Maturity benefit) is given in the form of: Guaranteed additions guaranteed maturity benefit vested reversionary bonuses + terminal bonus, if any is paid to the policyholder

*Guaranteed additions are payable to the policyholder for the first five years of the policy, which is equal to 5% of the guaranteed maturity benefit amount.

*Guaranteed maturity benefits are the lump sum sum assured amount payable to the policyholder at the maturity of the policy.

*Additional bonuses if declared by the insurance company.

• Sum Assured on death

The Max Life Guaranteed Monthly Income Plan is a non-linked participating endowment plan which ensures guaranteed survival and death benefits or immediate regular monthly income after the policy term for the duration of ten years. The main advantage of this plan is that it doubles the guaranteed monthly income after the first five years of policy inception. This plan also offers the benefit of ‘commutation option’ which allows the recipient to receive the present value of the survival or death benefit.

Key Features:

• Policy Term: Six and 12 years.
• Premium Payment Mode: Only annual mode.
• Minimum annualized premium for six years policy term: INR 75,000
• Minimum annualized premium for 12 years policy term: INR 20,000
• Death Benefit: In case of the death of the life insured, the beneficiary would receive the death benefit as a lump sum amount, which is the highest of:
   105% of total premiums paid;
   Guaranteed sum assured on death;
   Guaranteed sum assured on maturity; or
   Ten times the annualized premium.

*Guaranteed sum assured on death, payable as:

For Six years Policy Term :12.75 times of one annualized Premium

For 12 years Policy Term: 18.50 times of one annualized Premium

• Other than lump sum payout, the nominee also has the option to avail this benefit as regular monthly installments for a period of ten years.
• Survival or Maturity Benefit: Income Benefit + Terminal Benefit

*Income benefit is the monthly income which is payable for ten years after the completion of the policy term. Terminal benefit refers to the one-time lump sum payout payable at the end of policy term, equivalent to:

For six years policy term: 125% of one annualized premium and;

For a 12 years policy term : 200% of one annualized premium.

• This plan acquires a surrender value once the premium has been paid for a full two years, irrespective of the policy period chosen.
• Offers the commutation facility, i.e., to receive the value of the future benefits.

The Bajaj Allianz Life Flexi Income Goal- Enhanced Benefit policy is a plan that guarantees regular income even if the policyholder dies. Apart from the death benefit, this plan also provides the survival benefit at the end of the policy term. The insured also has the option to choose to receive or to accumulate the survival Benefits and earn returns. There is also the option to choose joint life cover which also provides coverage to your spouse. The plan comes with five optional riders and also provides the loan facility as per the surrender value of the policy.

Key Features:

• Sum Assured: Starts from INR 1,58,400.
• Premium Payment Term: 5 to 12 years.
• Policy Term: 5 to 25 years.
• Premium Payment Mode: Annually, half-yearly, quarterly or monthly.
• Survival Benefit:
   Guaranteed benefit is payable at the end of the premium payment term as a lump sum amount of 50% of the sum assured.
   Guaranteed monthly income is payable every month at the end of the premium payment term till the end of the policy term.
   Cash value is given when the policyholder chooses to accumulate the guaranteed benefit and guaranteed monthly income which will be payable as the accumulated amount plus the investment return.
• Maturity Benefit: This benefit is offered if the policyholder is alive as on the maturity date, which is payable as:
   Guaranteed benefit of 100% of the sum assured;
   plus, reversionary bonus and terminal bonus and cash value.
• Death Benefit: Sum assured on death+ 105% of the cash value + reversionary bonuses and terminal bonus, if any.

*The death benefit cannot not be less than 105% of total premiums paid by the policyholder up to the date of death.

• Joint life cover option is available which also covers the spouse under the same plan.
• Flexibility to choose death and maturity benefits in regular installments, to change premium payment mode.
• There are various riders available with this policy:
  1. Bajaj Allianz accidental death benefit rider.
  2. Bajaj Allianz accidental permanent total and partial disability benefit rider
  3. Bajaj Allianz critical illness rider
  4. Bajaj Allianz family income benefit rider
  5. Bajaj Allianz waiver of premium rider

This is a single premium payment plan which offers both maturity and death benefit to the policyholders. They also have the option to enhance the life coverage amount from 1.25 times to 10 times of the premium amount. This plan gives the option of four riders such as accidental death benefit rider, accidental disability rider, critical illness rider, and income benefit rider. Apart from this, one can also avail loan against this policy.

Key Features

• Receive the benefit of guaranteed income on maturity.
• Enhanced life coverage ranging from 1.25 times to 10 times of the single premium payment amount.
• Option to avail loan against the policy.
• Covers death claims due to Covid-19.
• Policy terms are 10 and 15 years.
• Minimum sum assured is INR 50,000.
• Option to enhance the coverage from four optional riders.

The Life Insurance Corporation of India, one of the leading players of the insurance sector in India, offers LIC New Endowment Plan, which serves the combination of savings and insurance coverage to its users. This plan also provides liquidity through its loan facility. The LIC New Endowment Plan also offers five useful riders which can be added along with the basic policy. The policyholder also has the option to opt for lump sum payout or monthly installments to receive maturity or death benefit.

Key Features

• Sum Assured: Starts from INR 1 lakh
• Premium Payment Mode: Annually, half-yearly, quarterly or monthly.
• Death Benefit: Sum assured on death+ reversionary bonuses and additional bonus, if any.

*The death benefit cannot not be less than 105% of total premiums paid by the policyholder up to the date of death.

• Option to receive death benefit in installments for the period of 5, 10 or 15 years. The installments can be received on yearly or half-yearly or quarterly or monthly basis.
• Maturity Benefit: Sum assured on maturity of reversionary bonuses and additional bonus, if any.

*Sum assured on maturity is equal to the basic sum assured.

• The policyholder can participate in the profits of the LIC and thus be entitled to receive reversionary bonuses if declared by the company. The LIC can also declare final or additional bonus which if given under the policy in death or maturity benefits, only if this policy has run for a certain minimum term.
• There are various riders available with this policy:
   LIC accidental death and disability benefit rider.
   LIC accidental benefit rider.
   LIC new term assurance rider.
   LIC critical illness rider.
   LIC premium waiver benefit rider.