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Investment Plans 523 views August 18, 2021
An endowment plan provides life cover along with the benefit of regular savings, helping you meet various financial needs such as funding retirement, children’s education, marriage or buying a house. And if you die during the insurance period, the insurer pays the full sum assured to the beneficiaries along with the accrued bonuses. These bonuses are also payable at the time of policy maturity.
But there’s a twist to this bonus payout tale! Yes, not all endowment plans offer bonuses. The ones that participate in the bonus declared by the insurance company offer the said payment. These plans are represented as participating plans. You can get a certain percentage of the sum assured or a fixed amount as a bonus, depending on the plan you choose.
But which endowment plan offers the best bonus payouts? Let’s read this page further and find out.
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The following are the best endowment plans with exciting bonus payouts.
Max Life Life Gain Premier is a traditional participating endowment insurance plan that offers you the flexibility to choose the bonus option as per your need. The following bonuses are available under this traditional life insurance plan.
Annual Bonus: You can choose to receive this bonus in cash or by purchasing Paid-up Additions. Once the bonus is declared, it will be guaranteed and paid on the death of the life insured or maturity of the policy.
Cash bonuses will be declared every year from the end of the 2nd policy year i.e, 24th policy month on the Guaranteed Maturity Sum Assured and from the end of the 3rd policy year i.e, 36th policy month on accrued Paid-up additions (if any) and at the end of every year thereafter.
You can choose to receive the annual bonus through any of the three options:
Purchase Paid-up Additions – The bonus declared by the company is utilized to purchase Paid-up Additions. It will increase the Sum Assured under the policy and will be payable on Death or Maturity, whichever is earlier. Also, the Paid-up Additions will earn further bonuses to increase the value of the policy. In case of surrender, the insurer will pay the cash value of the Paid-up Additions. The purchase rates of Paid-up Additions are not guaranteed and can be changed by the insurance company with prior approval of the Insurance Regulatory and Development Authority of India (IRDAI).
Premium Offset – Utilize the Cash Bonus to offset future premiums payable under the policy. If the Cash Bonus is not sufficient to pay the full premium, you will need to pay the balance premium to keep the policy in force. However, if the cash bonus exceeds the premium due, the insurer will pay the balance amount to you.
Payable in Cash – Any bonus declared by the company shall be paid to you as and when declared.
This is an additional bonus payable on Death, Surrender or Maturity, whichever is earlier, provided the policy is in force for at least ten years. Terminal bonus is payable in case claims have been made from the end of the 120th month.
HDFC Life Sampoorn Samridhi Plus provides you the following plan options:
You need to choose the plan option at inception and the same cannot be altered later.
You can avail of the following bonuses under the HDFC Life Sampoorn Samridhi Plus Plan.
A simple reversionary bonus is declared by the company at the end of each financial year. Once this bonus is added to the policy, the same shall be payable on maturity or death, provided all due premiums are paid.
In case of death or surrender during the inter-valuation period, you’ll receive the Interim Bonus based on the bonus rates declared by the company.
A Terminal Bonus may be added to a policy at the end of the policy term, based on the actual experience over the policy term. Terminal bonus will be payable to you as a lump sum at the end of the policy term.
Kotak Classic Endowment Plan is a participating endowment plan that offers financial protection up to the age of 75 years. If you purchase this policy, you will earn a yearly bonus from the first policy year. Check out the bonuses available under this plan.
Simple Reversionary Bonus: At the end of each financial year the company may declare a bonus as a percentage of the Sum Assured on maturity. The bonus shall accrue from the 1st policy year till the end of the policy term. It will be payable either on maturity or death.
Interim Bonus: If you file a claim, part-way through a financial year or before the declaration of the Simple Reversionary Bonus for that year, an interim bonus as decided by the company may be payable at such rate.
Terminal Bonus: The company may decide to pay a Terminal Bonus in case of death after 10 full policy years or on maturity.
Note: Terminal Bonuses are not payable if the policy is in Reduced Paid-Up status or Surrendered.
LIC New Endowment Plan participates in profits of the company, which entitles you to receive Simple Reversionary Bonuses as and when declared. The company may also declare a final (additional) bonus in case of a claim under death or maturity benefit, whichever is earlier.
Note: Final Additional Bonus shall not be payable under paid-up policies.
Birla Sun Life Insurance Vision Endowment Plan provides you reversionary and interim bonuses if any. These accrued bonuses shall be payable on death, surrender or maturity, whichever is earlier. In case of surrender, you will get the surrender value of the attached bonuses. The bonus rate is declared by Aditya Birla Sun Life Insurance and it may vary from year to year and based on the actual experience and the prevailing economic conditions.
A terminal bonus at the company’s discretion shall be payable to you either on death or maturity, whichever is earlier.
Note: Future bonuses are not guaranteed and will depend upon the future profits of the company.
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