What Is an Endowment Plan?

An endowment plan combines insurance + savings. You pay higher premiums, and at maturity (if you survive), you get a lump sum. If you die during the term, your nominee gets the sum assured + bonuses. Popular plans: LIC Jeevan Anand, LIC New Endowment, HDFC Sanchay Plus.

Frequently Asked QuestionsCan I surrender my endowment plan and switch to term?

Yes, but check the surrender value first. If you've paid for less than 3 years, you get almost nothing back. After 3+ years, you get a surrender value (30-70% of premiums paid). Calculate if the loss is worth it compared to continuing the plan.

Is LIC Jeevan Anand a good plan?

Jeevan Anand is popular but provides only 4-5% returns after charges. For the same premium, a combination of term insurance + PPF/mutual fund will give 8-12% returns. However, it does offer guaranteed maturity — suitable for extremely risk-averse individuals.

Endowment Plan vs Term Insurance: Which One Should You Buy in 2025?

By Admin • Feb 23, 2026 • 📖 4 min read

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Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 📖 830 words ⏱️ 4 min read

Endowment Plan vs Term Insurance: Which One Should You Buy in 2025?

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