Endowment insurance covers the person for a certain period of time. In this way, the individual can insure for as long as he wishes. In the event of the death of the individual applicant, he or she will receive the insured sum and the premiums paid by the insurance company for the years the policy is in force. Upon expiration, the insured receives the sum insured and the premium for the term of the contract. Estate life insurance can be divided into profit and charity plans.
Charitable foundation plans are also known as risk insurance plans that offer the nominee a sum insured in the event of the death of the insured. If the benefit plans are paid, the insured receives the insured sum and the premium for the duration of the contract upon expiration. In the event of the death of the insured, the nominee receives the sum insured plus the premium.
The Endowment Plans has the following advantages:
Insurers award different types of premiums. The bonus is the extra money added to the products distributed to the insured. Only policyholders who sign up for plans at a profit are eligible for this benefit. Premiums are only awarded after the insurance company accounts for excess funds after recording costs, claims, and expenses.
There are two types of bonuses:
Repeatable bonus: is the additional money payable to the nominee in the event of the death of the policyholder, or added to the amount owed when a policy with benefits expires. Once selected, this option cannot be changed if the policy is in force until the expiration date or until the insured dies.
Terminal bonus: This is the discretionary amount in addition to the payments that will be made at the end of the contract or in the event of the death of the insured.