What is the meaning of Endowment plan?
This is a kind of insurance plan only in which the insured is insured against the life also & a part of the premium paid is used for investment purposes.
A certain part of premium gets adjusted towards sum assured & some part of premium paid is gone towards the investment for long term.
Endowment plans may declare bonus every year. As in the case of stocks or Mutual funds where the bonus is paid immediately, but in the case of Endowment policy, the bonus gets accumulated & is paid when the policy matures or the insured person dies
Regards
Mayank Gupta
http://www.wealthbazaar.in/
This is a kind of insurance plan only in which the insured is insured against the life also & a part of the premium paid is used for investment purposes.
A certain part of premium gets adjusted towards sum assured & some part of premium paid is gone towards the investment for long term.
Endowment plans may declare bonus every year. As in the case of stocks or Mutual funds where the bonus is paid immediately, but in the case of Endowment policy, the bonus gets accumulated & is paid when the policy matures or the insured person dies
Regards
Mayank Gupta
http://www.wealthbazaar.in/
A proper definition. Mayank. Good!!!
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