An endowment policy is a combination of insurance and investment. This plan provides maturity benefits i.e. in case of death of the insured the beneficiary will receive the benefits or in case of survival a maturity amount is received by the insured. life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.
The investment in life insurance provides exemptions and deductions under the Income Tax Act 1961 (Act). The insured can avail deduction benefits under 80C. However the life insurance policy should be evaluated on the basis of protection benefits rather than tax exemption benefits.