Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What are the Benefits of Endowment Policy?

Are you tired of living paycheck to paycheck? Do you want to secure your future financially? If yes, then investing in an endowment policy might be the right choice for you. In this blog post, we will explore the benefits of endowment policies and why they are the best investment for your future.

  • May 08, 2023

Key Takeaways:

  • An endowment policy is a life insurance policy that pays out a lump sum of money to the policyholder at the end of a specific term or upon the policyholder’s death.
  • Endowment policies offer guaranteed returns on the investment amount
  • It offers life cover to the policyholder

The conventional insurance plans work by the rule: pay the premium and get compensated for the loss incurred; if everything goes well, the premium stands null after that covered period. But an endowment plan is not just about covering the losses. Let us explore the plan and the host of benefits of endowment policy.

What is an Endowment Plan?

An endowment policy is a life insurance policy that pays out a lump sum of money to the policyholder at the end of a specific term or upon the policyholder’s death. These policies provide financial security and help individuals achieve their long-term financial goals.

Why choose an Endowment policy?

The most popular type of insurance among all is life insurance, in the purview of which we pay after a specific interval (monthly, quarterly, yearly) to cover our life, and the sum assured is paid to the nominee in case of the insured’s demise in this covered tenure.

But what if the individual stays fit and fine and leads a good life till his maturity? Will the premium paid by them to the insurance company be of no use then?

Well, just like any other insurance policy, your life will be covered, and in case of any mishap, the nominee will be paid the sum assured. However, if everything goes fine, you will get a good return on the amount you paid as the premium. Hence, an endowment plan not only covers your life but also provides good returns on the amount you paid as a premium, and what could be better than that?

Benefits of Endowment policy

There are various benefits of the Endowment Policy. The most prominent Endowment Policy benefits are listed here:

Guaranteed returns

Endowment policies offer guaranteed returns on the investment amount, ensuring that the policyholder receives a lump sum of money at the end of the policy term.

Life cover

Endowment policies offer life cover to the policyholder, ensuring that their family is financially protected in case of their untimely demise.

Maturity benefits

Upon the completion of the policy term, the policyholder receives a lump sum of money that can be used to achieve long-term financial goals such as buying a house, funding their children’s education, or planning for their retirement.

Tax Benefit

A double endowment policy is a risk coverage of life while also being a good investment plan. If any mishap occurs, the nominee gets the sum assured. At the end of the stipulated term, the policyholder receives the maturity benefit, the sum assured, along with other bonuses (depending upon the plan you opt for).


One of the best endowment policy benefits is the tax exemption it brings. You can claim the tax exemption under Section 80C for the premium paid, and the sum assured received is tax-free under Section 10 (10D). Hence, it is a win-win situation.


An insurance cover, an investment plan, and yet in case of any emergency, you can ask your insurance company to foreclose the policy. You will get the sum till that time, along with the interest amount and bonuses. It is one of the most liquid table types of policy present out there.

Compounded Returns

A double endowment policy returns are paid with the sum assured; therefore, the generated returns are compounded repeatedly, ultimately giving hefty returns to you. These returns are tax-free under Section 10 (10D) of the Income Tax Act as they are part of the sum assured.

Riders’ Benefits

If you wish to add further facilities to your endowment policies, you can add multiple insurance riders for a fractional amount which can cover your health, accidental coverage, double endowment policy, and much more, depending upon your insurance company. These are one of the most popular benefits of an endowment policy, and you are suggested to apply suitable riders to your policy.

Loan Against Endowment Policy

Like any other asset, like your house, securities, or stocks, you can avail yourself of loans or bank limits against your endowment policy without disturbing the returns or the benefits of the endowment policy.

Low-Risk Investment Plan

Apart from covering the risk of our lives, the endowment policy benefits include a low-risk involvement. Instead, we could call it one of the safest investment options available as the Insurance companies are governed by strict laws to be followed. It is rated as safe as a Fixed Deposit with the bank with much better returns than the former.

How to choose the right endowment policy?

Opt To Pay Premiums As Per Your Saving Capabilities

Individuals with a consistent source of income can choose the regular premium payment endowment insurance, whilst those with sporadic income can choose the single premium option. Choose an endowment plan that gives you plenty of options for how long you want to pay your premiums and how frequently you want to pay them.

Company Credentials

Claim Settlement Ratio

An insurer’s claim settlement ratio is the number of claims settled divided by the number of claims filed: the greater the ratio, the better the insurer.

Solvency Ratio

A life insurance provider with a high solvency ratio is more likely to be financially secure and, as a result, better equipped to pay out your insurance claims and exist for an extended period of time. The greater the ratio, the better its ability to settle claims.

Customer Centricity

The commitment of a corporation to service quality should be prioritised. You, the customer, should always be at the centre of the company’s activities and treated with empathy and understanding.

Digital Strength

Access to online tools at the touch of a button will offer a convenient and hassle-free customer experience for you, whether you are acquiring insurance, paying a premium, renewing the policy, resolving a complaint, or settling claims.

Rider Benefits

With an endowment policy, you can also choose additional advantages in the form of riders. You can choose an endowment plan to protect yourself against unpleasant situations such as accidental death, disability, and so on, and therefore enhance your insurance coverage.


Now that you know the benefits of endowment policies, you can make an informed decision about investing in them. Remember, financial security is essential for a stress-free life. So, go ahead and invest in an endowment policy today. And if you want more information on endowment policies, follow us on social media for regular updates and tips on financial planning. And remember, investing in your future is always a good idea, even if it means sacrificing a few luxuries in the present!

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Adding A Child to Your Life Insurance Policy?

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

What are robo-advisors in insurance?

Key Things to Review in Your Life Insurance Policy Document

Why Renewal of Term Insurance Plan is Important

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

When are Millennials required to take out a life insurance policy?

What Happens If You Stop Paying Life Insurance Premiums?

Does Life Insurance Policy Cover Covid Death?

Choose the Nominee of a Term Life Insurance Plan Wisely

Should You Buy Life Insurance After Getting Married?

Why Your Family Should Know About Your Life Insurance Policy?

Life Insurance for Overweight Applicants

7 Superficial Reasons People Avoid Buying Insurance Online

Can You Transfer Life Insurance Policies to Another Company in India?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

All about Your Rights and Duties While Buying Life Insurance Policy

How to Make Death Claims on Life Insurance?

All About Life Insurance and How It Works?

Does Life Insurance Cover Terminal Illness?

जीवन बीमा क्या है?

5 Reasons Why a Women Should Buy a Life Insurance

Insurance Vs Investment - A Guide to Your Financial Goals

Terms and Conditions of Term Insurance Plans

What is Underinsurance & The Dangers of Being Underinsured

How To Choose The Right Life Insurance

What is Human Life value and a Human Life Value Calculator?

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

Sabse Pehle Life Insurance

Benefits of Term Insurance with Critical Illness Rider

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

How to Revive the Lapsed Life Insurance Policy?

Why One Must Buy Term Insurance before 25 Years

Is Life Insurance an Investment?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

9 Most Important Things You Must Learn About Paying Life Insurance Premium

Loan Against Life Insurance Policy

Role of Life Insurance in Your Financial Portfolio

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Can a Term Plan be the Substitute for a Retirement Plan?

Customer Awareness on Information Security

Important Changes to Make in Your Health & Life Insurance Plan After Marriage

Guidelines for Linking Aadhar and PAN to Insurance Policies

Why do most Indians choose the wrong way to buy life insurance?

What Is Social Impact Investing and How Does It Benefit Society?

How Does Life Insurance Work?

What Is the Procedure to choose a nomination in life insurance policy?

Always keep your Nominee informed

What is Life Insurance?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

Is It Advisable To Have Multiple Life Insurance Policies?

Do Your Financial Planning with Life Insurance!

Biggest Life Insurance Myths

Beware of Phishing & Fraud Insurance Calls

5 Common Life Insurance FAQs and Answers

How to Buy a Life Insurance Plan?

Life Insurance vs Mutual Funds

How Do Term Insurance Plans Differ for Smokers?

How to Find the Best Term Insurance Plan in Seven Steps

What is a Single Premium Term Plan and its Tax Benefit?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Various Term Insurance Premium Payment Options Available in India

How Many Insurances Should I Have?

All About Backdating in Life Insurance

In India, should NRIs purchase life insurance?

Term Insurance Tips for NRIs in India

Staying Insured While Investing

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Why You Should Never Cancel Life Insurance Policy

Top 5 Common Life Insurance Myths and Facts

A Term Insurance Guide for Disabled People

जीवन बीमा पर ऋण

5 Ways to ensure faster settlement of claims

What Is a Whole Life Insurance Plan?

Health Insurance VS Life Insurance

Process of Filing A Claim For Life Insurance

Is It Time to Review Life Insurance Policy of Yours?

How do life insurance payouts work?

What is Sum Assured in Endowment Policy?

Does Family History Affects your Term Life Insurance Rates?

Why Do Life Insurance Agents Avoid Selling Term Plans?

Compare Different Life Insurance Products Offered By Kotak Life

What Should One Expect During the Medical Evaluation for Life Insurance?

Why Life Insurance Is Always a Smart Decision

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Is Life Insurance For Millennials Really Needed?

Important Terminologies of Life Insurance

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What happens to joint life insurance after divorce?

Reasons Why Term Insurance Claims Get Rejected

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Most Common Life Insurance Riders to Enhance Your Existing Policy

Is it Worth Buying Disability Rider on Term Insurance?

6 Things You May Not Know about Life Insurance

बीमा क्षेत्र में IRDAI की भूमिका

Life Insurance Beneficiary

5 Benefits of Gifting Life Insurance Cover to Your Spouse

What is Minimum Life Insurance Policy?

Digital Life Certificate for Pensioners Seeking Pension

Nominee in insurance - A Complete Guide on nomination in insurance

How to Use Different Types of Life Insurance for Retirement Planning?

Term Life Insurance vs Accidental Death Insurance

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

What Is Insurance Rider and It’s Benefits?

Different Types Of Life Insurance In India

How to Choose Life Insurance for All Ages?

Voluntary Life Insurance Policy Vs Group Life Insurance

How Much Life Insurance Cover Do I Need?

All You Need to Know About KYC

Life Insurance for Millennials

Kotak Life Claim Settlement Ratio

How to Customize Your Life Insurance Policy with Riders

Life Insurance with Money Back vs Without Money Back

How to Calculate Human Life Value(HLV)?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Details Required To Be Filled In A Life Insurance Form

Does Life Insurance Pay for Suicidal Death?

6 Different Types of Insurance Policies

भारत में जीवन बीमा पॉलिसियों के प्रकार

Life Insurance Vs. Mutual Funds Investment

NRI Premium Payment Options

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Choosing Between Short-Term & Long-Term Insurance Plans

Who Is A Nominee In A Life Insurance Plan?

क्या जीवन बीमा एक निवेश है?

How to Choose the Right Life Insurance Policy for Your Age?

Why Term Insurance for Women is Important?

How Much Life Insurance Do You Need?

All about Life Insurance Calculators

Life Insurance for Overweight Applicants

Life Insurance and Retirement Planning

5 Reasons Why You Need Life Insurance in College

What is the Difference Between Limited and Regular Pay Insurance Plan?

Important Features of a Term Insurance Plan

Life Insurance and Millennials

Term Insurance Vs Life insurance: Small Details, Big Differences

Term Plan with Return of Premium (TROP)

Types of Life Insurance Policies in India

Types of Life Insurance Or One Investment, Many Options

How to Choose a Life Insurance Policy

“Life” Insurance or “Death” Insurance?

5 Easy Steps to Buying A Policy

Think About Life Insurance Sooner than Later

All about IRDAI

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

What is Group Insurance?

Can NRI Buy Life Insurance in India?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Difference Between Money Back and Endowment Policy

Do Life Insurance Premiums Increase Every Year?

Health Insurance VS Life Insurance

Why do I Need Life Insurance?

Difference Between Insurance and Assurance?

Choosing a Life Insurance Beneficiary

First Job? Here’s Some Tips on How to Manage Finances

Important Life Insurance Terms You Must Know

What Is Staggered Payment Option Under Term Insurance Policy?

Take 100% Responsibility of Your Family with Term Life Insurance

Why Should You Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

8 Things to Consider Before You Buy Life Insurance

What is the Current Trend in Term Insurance?

Why Buying a Term Insurance is Important for all Parents

Why Online Term Insurance Plans Cheap?

Best Insurance Plans in India

5 Advantages of Life Insurance Going Digital

Why is Medical Test Important While Buying a Term Insurance?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

FAQs on Life Insurance

6 Types of Insurance Policies in India

5 Things to Keep in Mind While Buying Life Insurance Policy

What is Insurance Coverage? Overview, Types, and Examples

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What Is Investment Insurance?

How Often You Must Review Your Life Insurance Policy?

What is the Difference Between Insurance and Reinsurance?

How to Buy a Term Life Insurance Online

Types of Insurance You Must Invest in for Secure Future

Life Insurance Plans for Women

Guide for Buying Online Term Insurance Plans for Senior Citizens

Role of IRDAI in the Insurance Sector

Life Insurance Policy Closure