How Does An Endowment Policy Work?

How Does An Endowment Policy Work?
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  1. “Endowment plans are usually similar to the regular insurance policies. Basically, an endowment plan is a life insurance policy which provides you with a combination of an insurance cover and savings plan. It helps you in saving regularly over a specific period of time, so that you are able to get a lump sum amount on policy maturity, if the policyholder survives the policy term. The policy includes life assurance, so in case of sudden death of the policyholder, the insurance company will pay the sum assured to the nominee of the policy.
    This amount can be utilized to meet financial needs like purchasing property, children’s education or retirement etc.”

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