Page 44 - M1_Insurance Introduction Notes

3. Endowment Policy

An Endowment Policy is a savings linked insurance

policy with a specific maturity date. Should an

unfortunate event by way of death or disability occur

during the period, the Sum Assured will be paid to the

insurer’s beneficiaries? On the insurer surviving the

term, the maturity proceeds on the policy become

payable.

4. Money back plans or cash back plans

Under this plan, certain percent of the sum assured is

returned to the insured person periodically as survival

benefit. On the expiry of the term, the balance

amount is paid as maturity value. The life risk may be

covered for the full sum assured during the term of the

policy irrespective of the survival benefits paid.

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