Is It Wise To Surrender an Endowment Plan?
It might so happen that you eventually found your endowment plan a liability rather than an asset. And the reasons could be many—maybe the policy is wrong, better tax saving instruments are available, and paying the premiums has become problematic due to financial woes. Whatever the reason might be, there is an effective way to get rid of your endowment policy. And the way is: surrendering it. What is an Endowment Plan? Before exploring the surrendering process and the rationality associated with it, let us first understand what an endowment plan is all about. An endowment plan is an insurance policy that guarantees a lump sum amount to the policyholder at the maturity period. But the policyholder has to survive until the maturity of the policy to receive the lump sum amount. However, some insurance companies have incorporated some modifications to the plan. They pay out the lump sum amount in the event ...