Endowment Policy Under Life Insurance Corporation of India (LIC)

Endowment Policy Introduction :-

A Endowment policy is a specie of Life Insurance Contract. Here as the word suggests there is a sum assured that will be obtained either after a maturity period or death which ever is before. Traditionally they are either Profit Linked or Unit Linked.

Profit Linked Insurance:-

In profit linked endowment the money is invested and REVISIONARY BONUS is paid on them each year out of profit. In the end a Final Additional Bonus is paid. In pld days in case of loss to the fund they used to adjust "Market Value Reduction" or MVR from the value but now this is discontinued.

Unit Linked Endowment Means:-

In Unit Linked Plan there is the money is invested in an unlisted units of insurance fund and then it is linked directly to market for value.

Some Example Of Endowment Plans:-

Life Insurance Corporation gives The Endowment Assurance Policy in Table 14, this allows sum assured on death or maturity which ever is before. Then there is a policy called Jivan Mitra i.e, Table 88, here the coverage is doubled as in event of death there are additional benefits.
There are other policies also like jeevan sathi and New Jana Raksha Plan(with profits).