Accurately filled SBI Shubh Nivesh registration form. KYC documents Accurate address proof Medical Examination Proofs Endowment Plans An endowment plan is a combination of insurance and investment and it promises the investor twin benefits of protection and good returns. Critically, it differs from a term plans in terms of maturity benefits. Endowment plans pay sum assured along with bonuses (if any) at the time of death or maturity (survival). In case of the death, endowment plan pays the beneficiaries of the insured the entire assured sum amount. Also, in a case where the insured manages to survive the entire plan term then the complete assured coverage is paid to him. This is achieved by charging higher fees as compared to term plans and whole life policies, which is reflected in the premiums. Endowment plans generally invest in high-quality debt instruments and / or government securities. The profits are a subject to the premiums amount invested in asset markets – equities and debt. The key benefits of an endowment policy include financial protection of loved ones, goal-based savings, tax benefits and the option to take a loan against the endowment policy. Endowment plans fulfill the dual need of life cover and savings through a single life insurance plan. To sum up, an endowment policy is essentially a life insurance policy, which in addition to covering the life of the insured, also helps him or her save regularly over a specific period of time so that he or she receives a lump sum amount at maturity in the event of him / her surviving the policy term. The maturity amount helps take care of important financial objectives like paying for childrens education and marriage, buying a house, saving for retirement, etc. There are basically two types of endowment plans – with profit and without profit. Endowment Plans without Bonus Benefits: These are typically low-cost policies as they do not have any bonus benefits and provide only the assured sum amount to the nominees in the case of the insureds death. On maturity, i.e. surviving the throughout the plan term, the insured receives the assured the sum amount or a calculated percentage of the assured sum based on company terms and conditions. Endowment Plans with Bonus Benefits: Such endowment plans additionally have bonus benefits with the assured sum amount. In the case of insured persons death, his nominees shall receive the assured sum with bonus benefits throughout the plan term. On survival throughout the plan term, what is also known as maturity, the insured is paid the assured sum along with the plan bonus. Such endowment plans are the most preferred policies whose maturity coincides with their retirement. Further, the maturity benefits can be used as income after retirement to meet the living expenses. Endowment Plans – Benefits Offer dual benefit of insurance and savings-investment Endowment plans covers risk for a specific plan term They are liquid in nature In case the policyholder survives the policy term, accumulated bonus is paid additionally with the assured sum amount. In case of the demise of the insured during the plan term, death benefit payable to the nominee includes vested bonus in addition to full sum assured A free paid-up plan for lesser assured sum amount can be secured, if payment of premium ceases after a certain minimum number of years, terms and conditions applied. Additional Rider Benefits. Tax benefits on annual premium and death benefits Under Section 80C and 10(10D) of Income Tax Act. Whole Life Insurance Plans A whole life insurance policy covers a policyholder over his life, i.e. this kind of life insurance policy provides insurance until the demise of the insured. Since the validity plan is not defined, the insured enjoys life cover throughout his or her life. Such a policy only expires in case of an eventuality resulting in death. The policyholder pays regular premiums until death, after which the corpus is paid to the nominees or beneficiaries. The premium for a whole life plan is paid for a longer duration of time since plan term. The insured however has the option of choose the premium paying term based on his needs. Also, the interest or bonus (cash value) earned on the premium is generally higher as compared to a with profit endowment policy. A whole life policy normally does not offer survival benefit as the policy term is not defined. The nominee receives sum assured plus bonus (if any) upon death of the policyholder. The policyholder gets the benefit to make withdrawals or take loan against the cash value of the plan. Whole life policies are suitable for people of all ages who wish to protect their families from a financial crisis due to premature death of the policyholder. You may like to know more :SBI Life Investment Plans