“Never depend on single income. Make an investment to create a second source”, celebrated investor Warren Buffet said about being rich. To accumulate funds, you need to save in a disciplined manner. And endowment policies encourage regular savings, helping you to create wealth over time.

Endowment policies also offer life cover for a fixed period. In exchange for low-cost premiums, an endowment plan provides your family with financial coverage against the uncertainties of life. Besides, the returns can help you achieve your long-term financial goals like your dream house, your child's education, your retirement, and much more. Also, if you face a cash crunch, you can take loans against your policy.

With this plan, you can also avail deduction up to ₹ 1.5 lakh for your premiums paid under Section 80C of the Income Tax Act, 1961. And the maturity amount is also tax-free* u/s Section 10(10D) subject to conditions mentioned therein.

Considering so many benefits, endowment policies are one of the best financial tools available to fulfill your dreams. But before you buy, you need to understand the features of different types of endowment plans and the one that best suits your needs. Here’s a brief guide.


Often known as with-profit endowment plans, these guarantee you an amount, as the sum assured, at the end of the policy term. In case of an unfortunate event during this period, the insurer pays this amount to your nominee.

However, the maturity benefit you receive after the policy matures is often higher than the sum assured as the insurer provides you with additional money in the form of bonuses.

Thus, full-endowments can help you earn extensive earnings over time.

Low-cost Endowment

In this plan, the premium amount is less and helps you to save for future payments, due after a certain period. The insurer guarantees the sum your nominee will receive in case of an eventuality. Yearly bonuses also increase the amount payable to you at maturity.

The primary purpose is to create a fund within a defined time-frame. You can, thus, use this type of endowment to finance loan repayments or specific life goals.

Unitised with-profit endowment plan

These schemes combine the high earning potential of ULIPs with guaranteed returns to keep your investments safe from market fluctuations.

The scope of profits with these plans depends on the capital market. But these plans cushion the effect of market downswings with an assured payout at maturity. Regardless of the fluctuations in the capital market, you are sure to receive this guaranteed payback. And in your absence, your nominee receives this amount.

Thus, you can consider this product as a safe investment option with a higher return opportunity.

Non-profit endowment

This policy offers a specified lump sum amount to you on maturity or to your nominee in case of any unfortunate event, whichever occurs earlier. The payout money remains unchanged as the insurer does not offer bonuses with such plans.

Thus, these plans are ideal as safety nets for your family against any financial distress in your absence.


If you are looking for the triple benefits of investment, insurance, and tax savings, endowment plans are a perfect choice. When you think about buying one, you can consider the advantage of guaranteed3 returns with the ICICI Pru Lakshya Lifelong Income plan. The capital you invest stays secure with the guaranteed sum assured at maturity1. Regular bonuses2 grow your wealth. And having a regular source of income3 until you reach 99 years of age ensures financial freedom even after retirement. All this, along with the benefit of financial protection through a life cover4, makes this policy an all-rounder. It helps you meet all your financial goals at one go. So invest today for a protected and secured future of your loved ones.

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1. Sum Assured on Maturity is equal to Premium Payment Term X Annualised Premium.

2. Cash Bonus is a proportion of the Sum Assured on Maturity depending upon the chosen Premium Payment Term. Bonus may be declared annually from the first year as ‘Regular Additions’ and will be a percentage of the ‘Sum Assured on Maturity’. Terminal Bonus may be declared by the Company and will be payable at policy maturity or on death.

3. Guaranteed Income will be set at policy inception depending on the Premium, Age, Gender and Premium Payment Term

4. Death Benefit is higher of: 1. Sum Assured on Death, plus accrued Regular Additions net of encashment (if any), plus Interim Regular Addition (if any), plus Terminal Bonus (if any) 2. 105% of Total Premiums Paid as on the date of death.

* Tax benefits under the policy are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

ICICI Pru Lakshya Lifelong Income UIN 105N179V01


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