1. 2.

Introduction An Endowment policy is a life insurance to pay back a lump sum amount

after a specified term (on its 'maturity') or on death of the policy holder. It provides a
living benefit to the policyholder as periodic pay-outs along with insurance coverage.
2. 3. Endowment Policy Endowment policy is a type of life insurance coverage in which,

the insurer offers payment of sum assured to the policy holder or to his nominee or
assignee or legal heirs either at the end of the specified period or on death of the assured
before the specified period.
3. 4. Types of Endowment policy 1. Pure endowment policy 2. Ordinary endowment policy

3. Joint life endowment policy 4. Double endowment policy 5. Fixed term endowment
policy 6. Educational annuity plan 7. Money back policy 8. Marriage endowment policy
4. 5. 1. Pure Endowment policy In this policy the assured or his nominee gets only a

specified sum of money on his death or on the maturity whichever is earlier. 2. Ordinary
Endowment policy This policy represents Life insurance in true sense, but it is taken for a
specified term of years. The sum assured is payable either on death or on its maturity. It is
a combination of term and pure endowment. 3. Joint life Endowment policy This policy
covers more than one life under a single policy. The sum assured is payable on the expiry
of the term or on the death on one of the assured during the endowment period.
5. 6. 4. Double Endowment policy Under this policy, if the assured dies during the

endowment period, basic sum assured is payable and if he survives the period double the
sum assured is paid 5. Fixed term endowment policy In this policy sum assured is
payable only at the end of stipulated period, the premium ceases if the death of policy
holder occurs. Then policy becomes fully paid. 6. Educational annuity plan In this policy
the assured amount is not paid in lump sum but is payable in equal instalments for 5
years.
6. 7. 7. Money back policy This policy is suitable for those who feel the need for lump sum

benefits at periodical intervals. At the event of death within the period the full sum
assured is payable without any deduction. 8. Marriage Endowment policy This provides
funds for the marriage of the children. Premium is paid till death or for an agreed period.
If the child dies during the tenure the assured is an option to substitute the name of
another child as beneficiary