Endowment with Profit or Limited Payment Endowment, which is best

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Both the plans have their own PROS and CONS,


IN Endowment with Profit plan one need to pay premium for entire term, Limited Payment Endowment gives flexibility to choose PPT.


Premium rates are higher for Limited Payment Endowment as compared to Endowment with Profit plan, so which one to choose?


Well, if we look at the total premium amount Limited Payment Endowment is the winner, let us see how....


Mr. A who is 30 year old opt for END of 25 year for S.A 10, 00,000

Mr. B who is 30 year old opt for LPE of 25 year with PPT of 15 year and S.A 10, 00,000


Mr. A

Mr. B

Yearly Premium

38,820

50,653

Total Premium

9,70,500

7,59,795


Looking at above table we can see Mr. B is paying Rs. 11,833 extra every year

But in the same time Mr. B is saving Rs. 2, 10,705 compared to Mr. A in the overall term.

As Mr. B has still 10 years, he saves Rs. 21070.5 per year, which he can invest in places where he can earn money with higher rate.

And with all this LPE turns out to be winner even in the term of return.

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