1. What are the guaranteed^{^^} return components in an endowment policy?

An endowment policy provides a guaranteed^{^^} maturity benefit if the policyholder survives the policy term. It also offers a guaranteed^{^^}death benefit in case of an untoward incident during the policy term.

The policy may also offer bonuses; however, these values are not guaranteed^{^^} and can vary depending on several factors.

2. Can I take a loan against my endowment policy?

Yes, you can apply for a loan against your endowment policy. However, you must refer to your policy document for specific terms and conditions before applying for a loan.

3. How are premiums calculated for an endowment policy?

Premiums are calculated based on factors such as the sum assured, your age, policy tenure, gender and other relevant details.

4. What are the factors to be considered before buying an endowment policy?

You must consider the premium payment terms, total premium amount, bonuses offered and the reputation of the insurance company before buying an endowment policy.

COMP/DOC/Feb/2025/202/8451

5. What are the extra bonuses provided in an endowment policy?

An endowment policy may offer extra bonuses, including accrued reversionary bonuses, interim reversionary bonuses and a terminal bonus. Reviewing the policy documentation to understand the specific terms and conditions associated with these bonuses is essential.

6. How can I decide whether to get an endowment policy?

Deciding whether to get an endowment policy depends on your financial goals and risk tolerance. If your primary goal is to save money for long-term objectives while minimising risk, an endowment policy could be a suitable choice. Endowment plans offer a dual combination of life insurance coverage* and savings with guaranteed^{^^} benefits, making them a low-risk investment option.

However, it is important to consider factors like the policy's premium, policy term and expected returns when making your decision. Additionally, you must compare different endowment plans to select one that aligns with your financial goals and risk appetite.

7. When is the right time to buy an endowment plan?

The right time to buy an endowment plan depends on your financial goals and individual circumstances. While there is no appropriate time, starting early can offer distinct advantages. Buying an endowment plan at a younger age provides you with a longer savings period. This allows you to accumulate substantial savings over time. Premiums are also generally lower when you are younger.

Additionally, buying an endowment policy early ensures your loved ones' financial security in the event of an untimely demise. If you have specific long-term financial objectives like purchasing a house or funding a child's education, purchasing an endowment plan early can help you work toward these goals.

8. Can the beneficiary of my endowment policy be changed?

Yes, in most cases, you can change the beneficiary of your endowment policy. It is advisable to review and update your beneficiary with respect to changes in your life stage, such as marriage, divorce, the birth of a child or the demise of a beneficiary. This ensures the policy's benefit goes to the intended person according to your current wishes.

9. Does an endowment plan provide a lump sum payout?

Yes, an endowment policy provides a lump sum payout at maturity as long as the policy is active and all premium payments have been made. You receive the predetermined lump sum amount, also known as the maturity benefit, at the end of the policy's term. This lump sum can be used for various financial goals, such as covering retirement expenses, buying a house or any other intended use.

10. Can I discontinue my policy?

Yes, you can discontinue your endowment policy by surrendering the policy. However, it is important to consider the implications of this action. Surrendering a policy means you will not receive the full maturity benefit and may lose out on potential bonuses and savings. It is advisable to carefully evaluate your financial situation and the reasons for discontinuing the policy before making a decision.

^{^^} TnC apply

¹Life cover is the benefit payable on death of the Life Assured during the policy term.

^*Tax benefits under the policy are subject to conditions under Sections 80C, 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 applicable rates. Tax laws are subject to amendments from time to time. Please consult your tax advisor for more details

^$Savings wallet: You have an option to accumulate the Survival Benefit, instead of taking the same as a periodic payment during the policy term. You need to opt in for this feature through explicit consent vide request submitted to Us, whereby the Survival Benefit when due will be transferred to the Savings Wallet. Upon crediting the Survival Benefit in the Savings Wallet on the due date, the Survival Benefit will be deemed to have been paid and any amount within the Savings Wallet will be non-participating in nature. This option can be opted for and opted out of at any time during the Income Term. The money within the wallet will be accumulated daily at an interest rate linked to the Reverse Repo Rate published by Reserve Bank of India (RBI). The interest rate used for accumulation under this feature will be reviewed twice every year on 1st of June and 1st of December, and will be set equal to Reverse Repo Rate published on RBI’s website as on the review date. The current Reverse Repo Rate as at June 1, 2022 is 3.35% p.a. In case the balance in the wallet is not withdrawn completely during the income term, such balance will be paid to the claimant in the event of death, surrender or maturity, whichever is earlier along with other benefit payments (if any). On payment of this benefit, the policy will terminate, and all rights, benefits and interests under the policy will stand extinguished. Please refer to the sales brochure for more details.

^{^^}Guaranteed benefits are payable depending on the plan option chosen, subject to all due premiums being paid.

ICICI Pru Gold (Non-linked Participating Individual Life Insurance Savings plan) – UIN:

E/II/0700/2022-23