• Get Life Cover worth Rs.1 Crore at Rs.17 per day2 – Bajaj Allianz Life Smart Protection Goal

  • Apne life goals ki guaranteed1 hona Ye Bhi Sahi Hai

  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

  • Here's a Comprehensive Tool To Plan Your Child's Future

  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

  • Paying your Renewal Premium is Quick and Easy!

  • Know the right amount of Insurance you need in just a few steps!

  • Avail Term Insurance Tax Benefits under Section 80D

  • Know how to invest money during the covid-19 pandemic!


Thanks for showing your interest. A representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead


I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business


Please refer to BALIC Privacy Policy

In this policy, the investment risk in investment portfolio is borne by the policy holder.

Strong Long Term Fund Performance Track Record**

One Of The Most Trusted Brands#

Who Needs a Traditional Endowment Plan? | Bajaj Allianz Life

Tax Benefits~ On Online ULIP Plans

Please enter a Name
Please enter a Mobile No.
Please check the box to proceed
WS_LIGuideHome_Banner_EN 307 38983691 WS_LIGuideHome_Banner_HI 307 38983695
WS_LIGuideHome_Banner_Mob_EN 307 38983693 WS_LIGuideHome_Banner_Mob_HI 307 38983677
Please Select Language

**, #, T&C Apply | BJAZ-WB-EC-02755/21

Who Needs a Traditional Endowment Plan?

By : Bajaj Allianz Life

When browsing through life insurance plans, you must have often wondered if there’s any insurance product that combines the benefits of an insurance policy with savings opportunities. Well, Traditional endowment plans do just that. Traditional Endowment policies are insurance-cum-investment plans that offer you a life cover as well as an opportunity to save for the future.

The premiums you pay for such plans help build a corpus that’s given to you after the end of the policy tenure as a maturity benefit. However, in the event of your untimely demise during the policy term, death benefit –coupled with other bonuses (if any) on the principal sum assured amount- is paid to your listed nominee as per policy terms & conditions.

While the benefits that these plans offer are truly myriad, you must first check if you’re eligible for such plans.


Eligibility Criteria for an Traditional Endowment Policy


1. Minimum and Maximum Age Caps-

Most endowment plans have no lower age limit specification, but some plans consider 18 years as the basic age to qualify for such policies. The maximum eligibility age for such plans stands at 60 years, which may also vary from product to product. Thus, while you can even buy an endowment savings plan to safeguard the future of your newborn child, you can also adequately secure your retirement years with such plans.

2. Maturity Age-

You will be able to reap the benefits of such plans as soon as you turn 18. The funds from such an endowment policy can be used for various purposes, some of which includes - to fund your higher education aspirations, can be used as seed money for your own business venture etc.


When Should You Opt for a Traditional Endowment Plan?


While you might qualify under the above-listed eligibility criteria, it is important to thoroughly examine if a traditional endowment policy is the suitable option for you. Traditional Endowment plans are suitable solutions in the following circumstances:


When You Want to Protect the Financial Future of your Family


Traditional Endowment savings plans are preferable ways to build up a sizable corpus to help fulfil the needs of your dependents, irrespective of whether you’re present or absent. For instance, if anything untoward were to happen to you as the sole earning member of your family, your family’s financial future would be in serious peril. However, the death benefit payout from such plans helps cover the expenses of your dependents, ensuring their financial stability.

Similarly, with the rising inflation rates, you may want to start saving for your children’s wedding way ahead of time. By opting for a traditional endowment savings plan, you can deposit small amounts at your preferred pace to build a sizable maturity corpus (with additional benefits like bonus, if any) that can be used 10 to 15 years down the line to pay for such events.


When You Want to Ensure that your Child Achieves his/her Higher Education Goals


As a parent, you would want nothing more than to fulfil the educational aspirations of your kids. You wouldn’t want to see their dreams and aspirations crushed due to a lack of funds. With the growing expenses, it can be difficult to save up for your children’s higher education dreams.

However, with a traditional endowment plan, you can plan to achieve this life goal. The sum assured plus bonuses (if any) that you receive on maturity from such long-term savings plans can be used to fund your children’s education so that they can pursue their dreams without any obstacles.


When You Wish to Save for a Comfortable Retirement


Saving up for your retirement years is not just prudent but also a necessity. Since you have to meet regular expenses as well as tackle sudden contingencies during your years in service, the money that you earn during these years may not be enough to create a sizable retirement fund.

This is where traditional endowment saving plans come in handy. The piece-meal savings you dedicate to such plans, over say 10 to 15 years, are returned to you with guaranteed benefits which is the sum assured along with bonuses (if any) at the end of the policy tenure. Thus, you get to enjoy a retirement corpus that lets you comfortably and independently cruise through your retirement years. Take the aid of a retirement calculator for further assistance.


When You Are Looking for a moderately Risky Way of Creating Wealth


If you’re averse to high-risk products, but at the same time want to make return on your investment, a traditional endowment policy can be an option to consider. The guaranteed returns clause i.e. the sum assured coupled with bonuses (if any) ensures that you create a corpus without having to navigate the volatile markets.

This feature makes such plans suitable for investors with medium-risk appetites. Moreover, apart from the sum assured in the policy, you also get to enjoy cumulative bonuses, if any declared by an insurance company. Some policies also offer you rebates when a high sum assured is selected. All this makes such plans attractive wealth creation option to consider.


Wrapping It Up


Traditional Endowment policies let you save for the well-being of your family as well as prepare for any future emergencies that may arise. The life cover provided by such plans extends a blanket of financial security over your dependents, while its sizable maturity corpus helps you plan for the future of your family as well as your retirement.

Additionally, you get to enjoy tax benefits on your premium contributions under Section 80C of the Indian Income Tax Act, 1961, subject to provisions stated herein.

While a Traditional endowment policy is a prudent insurance -cum- investment option for many, you can assess if it fits your requirements by first analysing your life goals. If your life goals align to any or all of the scenarios highlighted above, you can definitely consider opting for a Traditional endowment plan.


#Survey conducted by brand equity – Nielsen in March 2020

~Tax benefits as per prevailing Income tax laws shall apply. Please check with your tax consultant for eligibility.

**Past performance is not indicative of future performance.

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.

The views stated in this article is not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read sales brochure & policy document (available on carefully before concluding a sale.