What is an endowment plan and how does it help you achieve your financial goals?

Can an endowment plan help you build a corpus for your future goals?

Does an endowment plan provide both savings and life insurance protection?

Is an endowment plan the right strategy to achieve your financial goals?

This article examines the INL Super Endowment Plan, covering its features, advantages, and disadvantages, along with a detailed illustration to evaluate its returns.

Table of Contents

What are the INL Super Endowment Plan?

What are the features of the INL Super Endowment Plan?

Who is eligible for the INL Super Endowment Plan?

What are the benefits of the INL Super Endowment Plan?

Maturity Benefit

Death Benefit

Grace Period, Discontinuance and Revival of the INL Super Endowment Plan

Free Look Period for the INL Super Endowment Plan

Surrendering the INL Super Endowment Plan

What are the advantages of the INL Super Endowment Plan?

What are the disadvantages of the INL Super Endowment Plan?

Research Methodology of the INL Super Endowment Plan

Benefit Illustration – IRR Analysis of INL Super Endowment Plan

INL Super Endowment Plan Vs. Other Investments

INL Super Endowment Plan Vs. Pure-term + PPF/Equity Mutual Fund

Final Verdict on the INL Super Endowment Plan

1. What are the INL Super Endowment Plan?

INL Super Endowment Plan is a non-linked, Non-Participating, Individual, Savings Life Insurance Plan.

It has been designed to ensure that you can save for your future along with the benefit of life cover and provide protection to your family.

2. What are the features of the INL Super Endowment Plan?

• Savings: Receive the Base Sum Assured upon survival until the policy maturity date.
• Family Protection: Get life cover of at least 11 times the annualised premium throughout the policy term.
• Flexibility: Choose a policy term ranging from 14 to 29 years and a premium-paying term of 7, 8, 10, or 12 years.
• Tax Benefits: Avail tax benefits, subject to the applicable income tax laws.

3. Who is eligible for the INL Super Endowment Plan?

Parameters	Minimum	Maximum
Age at entry (Years)	8 (last birthday)	60 (last birthday)
Age at maturity (Years)	22 (last birthday)	75 (last birthday)
Policy term & Premium Paying Term (Years)	PPT	PT
	7	14 to 19
	8	16 to 21
	10	20 to 25
	12	24 to 29
Sum Assured (Rs.)	1,25,000	No limit (For POS Channel 10 Lacs)
Annualised Premium (Rs.)	6,200	No limit (Subject to Board-Approved Underwriting Policy)
Premium payment frequency	Yearly, Half-yearly, Quarterly and Monthly

4. What are the benefits of the INL Super Endowment Plan?

i. Maturity Benefit

On survival of the Life Assured at the end of the Policy, the Guaranteed Sum Assured on maturity is payable, provided the policy is in force, and all due premiums have been paid.

Guaranteed Sum Assured on Maturity is equal to the Base Sum Assured under the policy.

The INL Super Endowment Plan policy terminates on payment of the maturity benefit.

ii. Death Benefit

On death of the Life Assured during the Policy Term, provided the Policy is in force as on the date of death, the Claimant shall receive the higher of:

• Sum Assured on Death or
• 105% of Total Premiums Paid as on the date of death of the Life Assured

The Sum Assured on Death is defined as the higher of:

• Guaranteed Sum Assured on Maturity or
• 11 times the Annualised Premium

The Policy terminates on payment of the Death Benefit

5. Grace Period, Discontinuance and Revival of the INL Super Endowment Plan

i. Grace Period

If you are unable to pay your premium by the due date, you will be given a grace period of 15 days, during which the policyholder pays the premium on a monthly basis and 30 days in all other cases.

ii. Discontinuance

Lapse: If all due premiums have not been paid in full for at least the first policy year, your policy shall lapse at the end of the grace period and the Death Benefit and Rider Benefits, if any, will cease immediately.

No benefits will be paid when the policy is in lapsed status.

Paid-up: If all due premiums have been paid in full for at least the first policy years and no future premiums are paid, the policy will move to Paid-up (or reduced paid-up) status.

On your policy becoming paid-up, benefits under the plan will be reduced.

iii. Revival

A INL Super Endowment Plan policy in a paid-up or lapsed condition can be revived within a period of five years from the due date of the first unpaid premium, but before the policy maturity date.

6. Free Look Period for the INL Super Endowment Plan

You are provided with a Free Look Period of 30 days beginning from the date of receipt of the policy document, whether received electronically or otherwise, to review the terms and conditions stipulated in the policy document.

In the event you disagree with any of the policy terms or conditions, or otherwise and have not made any claim, you shall have the option to return the policy to the company for cancellation.

7. Surrendering the INL Super Endowment Plan

The INL Super Endowment Plan Policy shall acquire a Surrender Value after completion of the first Policy Year, provided one full year premium has been paid.

The Surrender Value payable is the higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).

The Policy shall acquire a Guaranteed Surrender Value if all due premiums have been paid for at least the first two consecutive Policy Years in full.

Special Surrender Value shall become payable after completion of the first Policy Year, provided one full year’s premium has been paid.

8. What are the advantages of the INL Super Endowment Plan?

• Loan Facility: Avail a loan of up to 70% of the policy’s surrender value.
• Enhanced Protection: Add optional riders to extend the policy’s coverage.
• Flexible Premium Payments: Choose a premium payment frequency that suits your needs — yearly, half-yearly, quarterly, or monthly.

9. What are the disadvantages of the INL Super Endowment Plan?

• Inadequate Life Cover: The life cover offered by the plan may be insufficient to meet your family’s financial needs.
• Limited Benefits: The benefits are restricted to the sum assured, with no additional upside. The payout amount remains the same whether received as a death benefit or a maturity benefit.
• Low Returns: The plan offers relatively low returns, making it less attractive for long-term wealth creation.

10. Research Methodology of the INL Super Endowment Plan

The INL Super Endowment Plan pays the sum assured either as a death benefit or upon maturity, without any loyalty additions or bonuses.

While the payout is guaranteed, it is important to assess the returns if you are considering this plan as an investment.

Calculating the Internal Rate of Return (IRR) helps you evaluate its performance against other investment options.

Benefit Illustration – IRR Analysis of INL Super Endowment Plan

Consider a 30-year-old male who purchases the INL Super Endowment Plan with a sum assured of ₹5.54 lakh, a policy term of 20 years, and a premium-paying term of 10 years.

He pays an annual premium of ₹30,000 and receives ₹5.54 lakh at maturity.

This translates into an IRR of just 3.99% as per the INL Super Endowment Plan maturity calculator, which is considerably lower than the returns available from several debt instruments.

Male	30 years
Sum Assured	₹ 5,54,000
Policy Term	20 years
Premium Paying Term	10 years
Annualised Premium	₹ 30,000

Age	Year	Annualised premium / Maturity benefit	Death benefit
30	1	-30,000	5,54,000
31	2	-30,000	5,54,000
32	3	-30,000	5,54,000
33	4	-30,000	5,54,000
34	5	-30,000	5,54,000
35	6	-30,000	5,54,000
36	7	-30,000	5,54,000
37	8	-30,000	5,54,000
38	9	-30,000	5,54,000
39	10	-30,000	5,54,000
40	11	0	5,54,000
41	12	0	5,54,000
42	13	0	5,54,000
43	14	0	5,54,000
44	15	0	5,54,000
45	16	0	5,54,000
46	17	0	5,54,000
47	18	0	5,54,000
48	19	0	5,54,000
49	20	0	5,54,000
50		5,54,000
	IRR	3.99%

In fact, investing the same premiums in a recurring deposit could potentially build a larger corpus.

Although the plan guarantees the sum assured, inflation gradually erodes its purchasing power, reducing its ability to meet future financial goals.

From an insurance perspective, the sum assured may be inadequate to meet your family’s long-term financial needs.

From an investment perspective, the returns fall short of keeping pace with inflation.

Overall, the INL Super Endowment Plan offers limited value in terms of both life protection and wealth creation.

11. INL Super Endowment Plan Vs. Other Investments

Analysing the IRR of the INL Super Endowment Plan reveals that its maturity benefit may fall short of helping you achieve your long-term financial goals.

Combining insurance and investment in a single product often results in suboptimal returns.

An alternative approach is to purchase life insurance separately and invest the remaining amount based on your risk appetite. Let’s examine how this strategy can deliver better results.

INL Super Endowment Plan Vs. Pure-term + PPF/Equity Mutual Fund

Consider purchasing a pure-term life insurance policy with a sum assured of ₹5.50 lakh.

For a 20-year policy term and a 10-year premium-paying term, the annual premium is ₹4,000.

This leaves ₹26,000 annually for investment, which can be allocated according to your risk tolerance.

Pure Term Life Insurance Policy
Sum Assured	₹ 5,50,000
Policy Term	20 years
Premium Paying Term	10 years
Annualised Premium	₹ 4,000
Investment	₹ 26,000

Conservative investors may prefer debt-oriented options such as the Public Provident Fund (PPF), while investors willing to take higher risks may consider equity mutual funds.

Let’s compare the potential outcomes of these two approaches.

		Term Insurance + PPF		Term insurance + Equity Mutual Fund
Age	Year	Term Insurance premium + PPF	Death benefit	Term Insurance premium + Equity Mutual Fund	Death benefit
30	1	-30,000	5,54,000	-30,000	5,54,000
31	2	-30,000	5,54,000	-30,000	5,54,000
32	3	-30,000	5,54,000	-30,000	5,54,000
33	4	-30,000	5,54,000	-30,000	5,54,000
34	5	-30,000	5,54,000	-30,000	5,54,000
35	6	-30,000	5,54,000	-30,000	5,54,000
36	7	-30,000	5,54,000	-30,000	5,54,000
37	8	-30,000	5,54,000	-30,000	5,54,000
38	9	-30,000	5,54,000	-30,000	5,54,000
39	10	-27,500	5,54,000	-30,000	5,54,000
40	11	-500	5,54,000	0	5,54,000
41	12	-500	5,54,000	0	5,54,000
42	13	-500	5,54,000	0	5,54,000
43	14	-500	5,54,000	0	5,54,000
44	15	-500	5,54,000	0	5,54,000
45	16	0	5,54,000	0	5,54,000
46	17	0	5,54,000	0	5,54,000
47	18	0	5,54,000	0	5,54,000
48	19	0	5,54,000	0	5,54,000
49	20	0	5,54,000	0	5,54,000
50		7,66,580		14,36,879
	IRR	6.15%		10.35%

PPF requires a minimum annual contribution of ₹500 and has a 15-year tenure.

Accordingly, the contributions in the final years are adjusted to meet the minimum investment requirement.

Under this illustration, the investment grows to ₹7.66 lakh by the end of the policy term, delivering an IRR of 6.15%.

With the equity mutual fund option, the projected maturity value is ₹15.87 lakh before tax.

After accounting for capital gains tax, the post-tax corpus stands at ₹14.36 lakh, translating into a post-tax IRR of 10.35%.

Equity Mutual Fund Tax Calculation
Maturity value after 20 years	15,87,148
Purchase price	2,60,000
Long-Term Capital Gains	13,27,148
Exemption limit	1,25,000
Taxable LTCG	12,02,148
Tax paid on LTCG	1,50,268
Maturity value after tax	14,36,879

This comparison illustrates how separating insurance from investment can potentially generate a larger corpus than the INL Super Endowment Plan.

By choosing investments that align with your risk appetite and financial goals, you can improve your chances of building the wealth required to meet your future needs.

12. Final Verdict on the INL Super Endowment Plan

The INL Super Endowment Plan requires you to pay premiums for a limited period of the selected policy term.

It provides life cover throughout the policy term and pays the basic sum assured at maturity, provided the policyholder survives the term.

However, this is a straightforward endowment plan with no loyalty additions or bonuses.

Although the sum assured is guaranteed, the absence of additional benefits and the relatively low returns limit its potential for wealth creation and it also has a high agent commission.

Moreover, the sum assured may be inadequate to meet your family’s financial needs, making the plan less attractive as a comprehensive financial solution.

Adequate life insurance is essential to protect your family against financial uncertainty.

A pure-term life insurance policy is better suited for this purpose, as it provides substantial life cover at an affordable premium.

For wealth creation, choose investment products based on your risk appetite, financial goals, and investment horizon.

A well-diversified portfolio, aligned with your financial goals, can help you build wealth systematically and stay on track towards achieving them.

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