ENDOWMENT LIFE INSURANCE

• An endowment policy is an investment product that you simply buy from a life insurance company.
• They're found out as regular savings plans and at the tip of a group period disburse a payment.
• The policy includes life insurance, so it'll also pay if you die during the term.
• It is simple, upfront and transparent.
• Endowment plans are designed to pay back a payment amount after the policy term which is additionally referred to as maturity or on death of the policyholder.
• It provides a living benefit to the policyholder as payouts together with coverage.

• Enrichment Insurance covers the individual for a particular period. In this manner, the individual can protect himself until the period he wants.
• In case of the demise of the individual candidate gets the whole guaranteed and rewards the insurance agency has paid for the years the arrangement has been in power.
• Upon development, the policyholder gets the total guaranteed and reward for the term of the strategy
• Gift protection strategy can be delegated Endowment-with benefit and Endowment-without benefit plans.
• Enrichment without benefit plans is otherwise called term protection plans which offer the chosen one entirety guaranteed in the occasion of policyholders' demise
• Blessing with benefit plans, upon development the policyholder gets the entirety guaranteed and reward for the term of the arrangement and in the occasion of the demise of the policyholder, chosen one gets the total guaranteed in addition to reward.

• Enrichment arrangements have the accompanying advantages
• Generally, safe plans as the development benefits are ensured and all around characterized.
• Gives money related security to your friends and family.

• Extra Benefits of blessing Policy:
• The reward is the additional cash which is extra to the returns that are dispersed to the policyholders.
• Just policyholders taking up the with benefit plans are qualified for this advantage. Rewards are given simply after the insurance agency has considered surplus assets after costs, claims and costs are represented

• Revisionary Bonus: It is the extra cash to be paid to the chosen one in case of death of the policyholder or added to the development sum if there should arise an occurrence of with-benefits strategy. When this choice is taken it can't be changed if the approach is in power till development or demise of the protected.
• Terminal Bonus: It is the optional measure of cash that is added to the installments to be made at the end of the approach or on the passing of the policyholder.

• There are extra riders for the policyholders to look over according to prerequisites of policyholders
• Unplanned Death Benefit
• Family Income Benefit
• Basic Illness Benefit
• Emergency clinic Cash Benefit
• Waiver of Premium Benefit
• Unplanned Permanent Total/Partial Disability Benefit
• Highlights of Endowment Policies:

• Aggregate guaranteed alongside any rewards are paid to the chosen ones in the occasion of the passing of the policyholder and the event that the policyholder gets by till the residency of the approach he/she gets total guaranteed.
• Enrichment arrangement not just gives money related insurance to the group of the policyholder yet, besides assists policyholders with building a corpus for what's to come.
• Premiums can be paid in month to month, quarterly, half-yearly and yearly alternatives
• The policyholder can take extra riders like basic disease and individual mishap and incapacity advantage.

Yes, In case of permanent disability thanks to an accident, the corporate waives all future premiums and your policy continues uninterrupted.

• Yes, it gives three sorts of tax benefits.
• Premiums paid are tax-free under section 80 C.
• When you choose Critical Illness benefit you'll get additional tax break under section 80D.
• Claim amount received by you or your nominee is tax free under section 10(10D).
• Tax benefits under the policy are subject to conditions under Sec. 80C , 10(10D) and other provisions of the Income tax Act, 1961.

• Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof under an insurance policy, (other than a contract for a deferred annuity,) issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.
• Life Insurance premium paid in order to effect or to keep in force an insurance on the life of the assessee or on the life of the spouse or any child of assessee & in the case of HUF, premium paid on the life of any member thereof, under an insurance policy, (other than a contract for a deferred annuity,) issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured or actual premium paid whichever is less.. Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person,
  who is—
• I. a person with disability or a person with severe disability as referred to in section 80U, or
• II. suffering from disease or ailment as specified in the rules made under section 80DDB, deduction under this section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.
• Contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual, provided such contract does not contain a provision to exercise an option by the insured to receive a cash payment in lieu of the payment of annuity is eligible for deduction.

• Deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of assessee or his family (i.e. Spouse & dependent children) or any contribution made to the central Government Health Scheme or such other scheme as may be notified by the Central Government in this behalf or on account of Preventive health check –up of the assessee or his family .
• Additional deduction upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of parents or on account of Preventive health check –up of the parent of the assessee, whether dependent or not .
• In case of HUF, deduction allowable upto Rs.25,000/- if an amount is paid to keep in force an insurance on health of any member of that HUF.
• If the sum specified in (a) or (b) or (c) is paid to effect or keep in force an insurance on the health of any person specified therein who is a senior citizen, then the deduction available will be up to Rs.30,000/-. Here senior citizen means the person who is of sixty year or more during the previous year.
• In Case the amounts are paid in (a) or (b) or (c) on account of preventive health check up , the deduction for such amounts shall be allowed to the extent it does not exceed in aggregate Rs. 5,000 /-.
• For the purpose of deduction, the payment shall be made by
• Any mode, including cash, in respect of any sum paid on account of preventive health check up .
• Any mode other than cash in all other cases.
• The insurance as mentioned above shall be in accordance with the scheme framed by
• The General Insurance Corporation of India as approved by the Central Government in this behalf or;
• Any other insurer and approved by the Insurance Regulatory and Development Authority.

• As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempt from tax where the sum is received as a death benefit.
• To get exemption under above section for sum received other than death benefit following conditions to be satisfied:
• I . Policy shall not be issued under Section 80DD(3), or
• II . Policy shall not be issued as a Key man Insurance Policy, or
• III . Policy which has been issued on or after April 1, 2003 and the premium paid in any of the years during the term of the policy not exceeding 20% of the Actual Capital Sum Assured.
• IV . Policy which has been issued on or after April 1, 2012 and the premium paid in any of the years during the term of the policy not exceeding 10% of the Actual Capital Sum Assured.
• Where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—
• a person with disability or a person with severe disability as referred to in section 80U, or
• suffering from disease or ailment as specified in the rules made under section 80DDB, exemption under this section shall be available only if the premium payable in any of the years is not more than 15% of the actual Capital Sum assured.