What Is Endowment Life Insurance?
An endowment insurance plan is a type of life insurance that combines protection with savings and investment features.

Here’s how it works:
You pay regular premiums over a specified period (the policy term).
If you pass away during the policy term, your beneficiaries receive a death benefit—a lump sum payout.
However, if you survive the entire term, you get a lump sum amount as a maturity benefit.

Key Points:
Dual Purpose: Endowment policies serve a dual purpose—providing financial security for your loved ones and acting as a savings vehicle.
Guaranteed Payout: Unlike some other life insurance policies, endowment plans guarantee a payout either upon maturity or in case of your demise.
Structured Terms: These policies have specific contract periods (usually 10, 15, or 20 years) or may extend up to a certain age limit.
Investment Component: Part of your premiums is invested, allowing your money to grow over time.
Critical Illness Coverage: Some endowment policies also pay out if you’re diagnosed with a critical illness.

Why Consider an Endowment Plan?
Savings: It’s like a forced savings plan—you commit to regular payments, which accumulate over time.
Financial Security: Your family receives a payout if something happens to you.
Maturity Benefit: If you outlive the policy, you get a lump sum—a nice bonus for your financial goals.