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Fulfil your life goals with our Endowment Plans
Fulfil your life goals with our Endowment Plans
100% Guaranteed2 Returns
Tax-free3 Returns
Inbuilt Life Cover
2T&C apply
Secure your future: Guaranteed2 Returns
Secure your future: Guaranteed2 Returns
Almost every minor or major milestone in our lives has some financial aspect attached to it. This could be relocating to another city or country, sending your child to a renowned college, purchasing a car or house or starting a new business! While these events certainly have an emotional value, they often come at a price. To ensure that capital does not come in the way of fulfilling these goals, you can equip yourself with an endowment plan.
Tata AIA Life Insurance endowment plans are designed to ensure that every milestone in your life can be fulfilled with an endowment policy that you have chosen and customised as per your needs. With ample choices in the policy term, premium payment terms, coverage and riders1, our endowment plans act as a fool-proof financial solution to help you achieve your dreams!
In a traditional life insurance plan, the nominee receives a death benefit if the life assured passes away during the policy term. An endowment plan has the dual benefit of life insurance and savings.
An endowment policy is a type of savings life insurance policy that helps you save funds systematically throughout the policy term and then receive the benefits on maturity. While endowment plans also have a death benefit, like savings plans, they serve the purpose of helping you save a financial corpus for the future. This corpus can be useful for fulfilling major financial goals such as your child’s education, retirement, or down payment on a house.
Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan (UIN:110N152V11)
Tata AIA
*T&C apply
Tata AIA
Individual, Non-Linked, Non-Participating, Life Insurance Savings Plan (UIN: 110N152V14)
Tata AIA
Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V13)
Tata AIA
Individual, Non-Linked, Non-participating, Life Insurance Savings Plan (UIN: 110N206V03)
Table of Content
Now that you know the endowment plan meaning, let us understand its working. An endowment insurance policy is a type of savings policy that allows you to receive a lump sum benefit upon maturity. You get to choose an endowment with a policy term, premium payment flexibility and total sum assured of your choice. Moreover, you can enhance the coverage of your endowment life insurance policy by adding some optional riders1. The riders are useful as they enable you to handle sudden emergencies such as a critical illness or accidental death, or disability without interrupting your savings.
The insurance company manages the investment component of the premiums paid by you to provide a steady potential gain on your investment. Your savings fund grows with the passing years as you pay your premiums regularly, and this also lets you protect your family from financial uncertainties. Moreover, in case of your untimely death during the policy term, your family will be taken care of by the guaranteed death benefit.
However, if you survive the term, a lump sum benefit, which is your savings fund, is paid out to you as an endowment benefit. With the help of this endowment benefit, you can plan major purchases and fulfil your goals or make investments of your choice.
In India, there are four types of endowment policies:
Traditional Endowment Plans
These are traditional life insurance plans that combine the benefits of insurance and savings. Under a traditional endowment plan, the policyholder pays premiums for a certain period, and upon maturity of the policy, the policyholder receives a lump sum payout.
Unit Linked Endowment Plan
These are insurance plans that combine the features of both insurance and investment. A part of the premium amount is invested in equity or debt securities. The policyholder can choose the desired fund, and returns are based on the fund’s performance.
Non-Profit Endowment Plan
Under this type of endowment policy, a maturity amount is paid to you at the end of the policy term, or a lump sum benefit will be paid out to your nominee in the event of your unfortunate demise. These policies are known as non-profit endowments because the life insurance policy does not comprise any additional bonuses. Therefore, the guaranteed2 payout will remain the same as the amount pre-determined at the time of policy purchase.
Low-cost Endowment
The premium amount under this type of endowment plan is low, which helps you save your money for future payments. A certain amount is guaranteed2 to be paid out on maturity; in the event of your death, your nominee will receive the same. Moreover, yearly bonuses, as and when declared, will be payable, which boosts the maturity corpus. Hence, these plans can help you accumulate a financial fund within a defined period.
These are some of the reasons why you should have an endowment life insurance policy:
An endowment policy helps you save an amount each month or year, as per the premium payment term of your choice. Over the years, this might help you develop a regular habit of saving funds for your future. The maximum limit of the savings you accumulate depends on the maximum limit your insurance company allows you to invest.
Long-term financial goals, such as purchasing a new home, paying for your child’s further education, or starting a new business venture, may require a substantial amount of funds. You may require these funds as a lump sum rather than in small payouts. When your endowment insurance policy matures, you are entitled to the lump sum benefit for the fulfilment of your goals.
Endowment plans come with a protective life insurance cover that can help your family lead a financially comfortable life in case you are not around to provide for them. The life cover component is built alongside your savings. Therefore, in the case of an emergency, you may not have to worry about not having an alternative arrangement for your family’s financial stability.
As compared to market-linked investments, an endowment plan carries potentially lower risk, which may make it preferable for low-risk investors. By saving your capital in a systematic way over the years, you can accumulate a financial fund that you can receive on maturity. Since this amount is a guaranteed2 benefit, there is minimal risk of losing funds. Additionally, you can utilise the lump sum for your future financial goals.
Having understood what is endowment plan is and how it works, let us look into some of the salient features of an endowment plan:
You can choose the number of years over which you want to save through the endowment policy and pay premiums accordingly during the policy term. This ensures long-term savings until the plan matures, allowing you to receive the benefits.
The premium payments of the endowment insurance policy are eligible for tax3 benefits under Section 80C of the Income Tax Act, while the lump sum benefit received on maturity is tax-free under Section 10(10D) of the Income Tax Act.
You can add optional riders1 to your endowment plan based on the risks and events you are seeking coverage for, eg. accidental death, disability, critical illness and hospitalization. At nominal premiums, these riders can help you continue your savings while handling unforeseen events.
The life insurance cover of your endowment life insurance helps your family receive an assured death benefit in case of your untimely demise during the policy term to help them out financially in your absence.
The lump sum returns from your endowment policy may help you commit to the fulfilment of long-term goals. You can plan for major financial obligations in the future, such as setting up a trust fund with a lump sum endowment.
Since the endowment plan returns are guaranteed2, it becomes easier for you to plan out your future goals. Depending on the amount you want to save and the policy term, you can time your financial plans accordingly.
An endowment plan provides a lot of flexibility in terms of the policy term, the premium payment terms, modes, and frequencies, while also allowing you to choose how much you would like to save. This makes an endowment life insurance policy a feasible option for nearly everyone.
However, it is important to note that an endowment life insurance policy pays out the benefits of the policy as a lump sum amount on maturity. Therefore, people who intend to fulfil their financial objectives in the future with the help of a lump sum benefit can make the best use of endowment plans.
These plans offer a disciplined way to approach your savings, which makes it easier for you to plan your funds for the future. With the choice of premium payment terms and modes, you can choose the number of years for which you want to pay the premiums.
Below are three categories of people who can opt for endowment life insurance.
Those With Major Future Goals
A future investment or the fulfilment of a major financial goal means you have to be ready with the right amount of finances. An endowment plan can offer you the entire benefit as a lump sum so that you can plan for an expensive vacation, a large business investment or a big purchase for the future.
Those Who Seek Savings and Insurance
The life insurance component in an endowment plan is important for those who do not want to compromise their family’s security due to an unforeseen event. The life cover can help such people save their capital while not having to worry about the financial future of their loved ones.
Those With Flexible Financial Plans
Many people prefer planning their investments as time goes by. Hence, instead of opting for regular income, they choose an endowment benefit that puts the entire corpus in their hands, allowing them to decide how they wish to invest it, spend it or save it, as per their convenience.
Documents Required for an Endowment Plan |
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| When you want to buy an endowment life insurance policy, these are the following documents you might need: | |
Valid Address Proof |
Valid ID Proof |
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Endowment Plan
Calculator
Use our free online calculator to check the premium amount you need to pay to fulfill your life goals.
You should start planning your endowment life insurance policy in advance and at an early age so that you can time the fulfilment of your goals well with the lump sum benefits received on maturity. By choosing a policy term and premium payment option of your choice, you can sync your goals perfectly with your savings.
Since an endowment life insurance policy is quite flexible, you should compare different plan options, policy terms and other benefits to check which endowment plan will be suitable for you. If you have long-term goals, then be sure to choose a policy term that will enable you to accumulate capital over the long term.
To ensure that the premium payments do not become a hassle and you can manage all your other expenses during the policy term, opt for a premium payment term, mode and policy term that let you decide how to create your savings fund while keeping the premiums affordable and reasonable.
Optional riders1 are always good for your endowment plan as they cater to specific emergencies, such as accidental disability and critical illnesses. Look for adequate rider options so that you can choose the ones that are useful in enhancing the coverage of your endowment plan.
When your endowment plan matures, you typically get the sum assured plus any bonus that is applicable. The lump sum payment indicates the maturity of your endowment plan. It is a well-planned policy that can assist with future needs, such as education or retirement. Understanding the maturity benefits is important while selecting an endowment policy or reading an existing endowment insurance policy.
An endowment insurance policy can have tax advantages according to the prevailing tax rules. As per Section 80C of the Income Tax Act, the premium on an eligible endowment insurance policy can be deducted within a stipulated limit.
Additionally, the maturity amount of an endowment policy can be exempted under Section 10(10D), provided the conditions precedent are satisfied. All this is subject to the policy conditions, like the premium to the sum assured and lock-in. You should look into whether the policy you choose has such exemptions. Tax rules keep changing, and thus, you must review them while selecting an endowment insurance policy
What is an endowment plan?
An endowment plan is a form of savings life insurance policy that helps you save your funds over the policy term for a lump sum maturity benefit at the end of the policy term. Endowment plans also offer a life insurance cover to help protect your family’s financial future with a death benefit.
Can I customise an endowment plan as per my needs?
Yes, if your endowment life insurance policy offers different plan options with different policy terms and premium payment terms, you can choose a sum assured and a premium payment mode as per your needs and budget and customise your policy.
What does an endowment plan do?
An endowment plan helps you make systematic savings through your policy and receive a guaranteed2 lump sum payout at the end of the policy term. Moreover, life insurance endowment plans also offer life insurance protection to you and your family so that in the event of an unfortunate occurrence, they can support themselves.
When is the best time to opt for an endowment life insurance plan?
You should start planning a life endowment policy once you have your future financial goals planned out. This can start as early as your 20s or later in your 30s as well. Since endowment plans offer flexible premium payment options and policy terms, you can choose how many years you want to invest in an endowment plan.
Is it possible to surrender an endowment plan?
You may choose to surrender your endowment plan as long as the premiums for the first two years have been paid under the Limited and Regular Pay. However, it is recommended that you do not surrender your endowment plan as the maturity benefits can help you achieve your financial goals.
Is a lump-sum payout included in an endowment plan?
Yes, an endowment policy typically pays a lump sum at maturity. This sum comprises the amount assured and any bonuses, depending on the policy terms.
What are the key differences between a whole life policy and an endowment policy?
A whole life policy offers coverage for the entire life of the insured, while an endowment policy offers a specified term of coverage and pays a substantial amount when this term is over.
Does the Tata AIA Life Insurance endowment plan have any additional features?
Yes! With the Tata AIA Guaranteed Return Insurance plan, you have the flexibility to cover your spouse in the same policy under the Whole Life Income Option.
Are there tax benefits for all endowment plans?
Yes, the premiums paid towards an endowment policy are eligible for tax3 deductions under Section 80C of the Income Tax Act, while the death benefits and maturity benefits are tax-exempt under Section 10(10D) of the Income Tax Act, subject to the policy terms and conditions.
Does an endowment policy also offer life insurance coverage?
Yes, life insurance endowment plans offer life insurance coverage so that you can protect your family’s needs while accumulating a lump sum savings for your future commitments.
What type of claims can be filed on an endowment plan?
In case of the policyholder’s death, their nominee can file a death claim on the endowment policy. On the other hand, if the policyholder outlives the policy term, then they are entitled to a maturity benefit and will have to file a maturity claim.
Can a claim be processed if the nominee is not in India?
Yes, to file the claim, if the nominee is not in India, they will have to upload the attested copies of their documents online or send them to us by email. To file the claim offline, they will have to courier the documents to their representative in India, and they can visit us at any of our offices to file the claim.
How can my nominee file an online or offline claim for an endowment plan?
As a nominee, you can file a claim after the policyholder’s death and contact us through any of the given channels:
The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Close to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn. No. 110
What documents are needed to file a claim?
Please click here to know the list of documents needed for the claim intimation and settlement process.
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