Endowment plan
Endowment insurance is a combination of insurance and savings, investing a certain amount in the life insurance coverage and depositing the rest from the provider. If the policyholder of the fund survives the contract period, the insurance company will provide him with a maturity benefit. In addition, some fund policies may offer premiums for a period of time. If applicable, the surplus will be paid to the policyholder at the time of the contract or to the insured if he or she dies.
It is also called as classical life insurance. Since the risk is lower than the risk factors of other investment products, the return is also low.
The benefits of the donation plan are:
Return on Investment (ROI)- This serves as a long-term financial planning tool that provides return on maturity.