Question 1

Are the bonuses guaranteed?

Accepted Answer

No. Bonuses are declared from time to time and depend on the performance of the participating fund. Once a bonus is declared it is added to your policy.

Question 2

What happens if I miss a premium?

Accepted Answer

You have a 30-day grace period (15 days for monthly payments). After that the policy can lapse, and it can usually be revived within five years on the policy’s conditions. I send reminders so it does not come to that.

Question 3

Can I take the money out before maturity?

Accepted Answer

After two full years of premiums you can borrow against the policy. Surrendering usually returns less than you paid in, so a loan is often the better choice for short-term needs.

Question 4

How is this different from a fixed deposit?

Accepted Answer

An endowment plan includes life cover and bonus-linked returns that are not fixed. A fixed deposit has a fixed rate but no cover. Endowment plans suit goals you will not touch for many years.

Question 5

Can the maturity amount be paid in parts?

Accepted Answer

Yes. You can choose instalments over 5, 10 or 15 years instead of a lump sum.