Maturity: A pure endowment plan pays you only if you survive the policy term. You can use this maturity amount as a retirement fund or to meet your financial responsibilities. Along with the guaranteed1 amount at maturity, you may receive additional bonuses and benefits, depending on your policy terms.
Savings: A pure endowment policy is a saving tool. You must pay the policy premiums regularly when the policy is active and receive a lump sum amount then the policy matures. Since the policy term is usually long, it acts as a savings tool for you.
No death benefit: A pure endowment plan does not provide any maturity benefit or death benefit to the family members if the policyholder dies during the policy term. However, you may combine it with a traditional life insurance policy, such as term plans to add the death benefit feature to your policy.
Nomination facility: Unlike a traditional life insurance policy where the policyholder assigns a nominee to receive the policy benefits, there is no need to assign a nominee for a pure endowment plan since the plan does not offer any death benefits or maturity benefit in the case of the policyholder’s death during the policy term.
Premium payment: You must pay the pure endowment policy premiums regularly and on time to keep the plan active.
No surrender value: You cannot surrender a pure endowment plan before the completion of the plan’s term in exchange for its cash value.