What to keep in mind while getting an Endowment Insurance Plan?

Compare premium amounts

A Premium is the amount you pay monthly, quarterly, half-yearly or yearly to the insurance company for your Insurance Policy. Compare the premium amount of different insurance companies before buying a policy

Think about the Sum Assured

How much money we get from the insurance company at the end of the policy term, or in the case of death of the policyholder is the Sum Assured. Decide how much you will need.

Read customer reviews on company websites

Look for Persistency Ratio, negative comments, negative experiences, etc in customer reviews on the company website.

Pro Tip:

The number of Life Insurance policies being renewed with the company by their customers through timely payments is called Persistency Ratio. It is usually not revealed by companies as it is non-public data, however we can look for customer reviews on company websites.

Check the Claim Settlement Ratio of company

The Claim Settlement Ratio shows the number of claims which were settled by the insurance company out of all the claims which were raised in the year. The Claim Settlement Ratio is published every year by insurance companies on their website.

Compare Additional Coverage

These are the extra benefits, other than the Sum Assured, which the insurance company provides. (Hyperlink sum assured, insurance company)

Example: Waiver of premium in case of disability, waiver of premium in case of critical illness, etc

Policy Tenure

Hold a longer term policy to attain full benefits of the Endowment plan. (Hyperlink term)

Cost of buying Additional Riders

Riders are extra benefits that you can buy and add to your basic Endowment plan. The cost of these riders should be considered.

Read more about Additional Riders here. (Link to section on Riders)

Points to remember:

Think about these points before buying an insurance policy:

What is the monthly/ yearly premium you can afford to pay
How much Sum Assured will you need
How is the customer review and experience of the insurance company
What is the insurance company’s persistency ratio and claim settlement ratio
What policy term will best suit you
What are the Additional Coverage benefits of the plan
What is the cost of buying Additional Riders

To track your progress