Defined Growth Endowment Insurance Plan (DGEP) is an endowment product from Star Union Dai-ichi Life Insurance with fixed policy terms of 15, 20 and 25 years. The scheme offers to pay guaranteed additions ranging from 5% to 8% depending on the policy term. The additions accrue each year and are paid to the policyholder at the time of maturity along with the sum assured. In the event of death of the policy holder before maturity, the nominee is entitled to receive the entire amount of sum assured along with guaranteed additions accrued till the date of death.

Key Features

The guaranteed additions are phased-in in an ascending order of the policy term, ie, 5% of the sum assured to be paid during the first five policy years, 6% during the next five, 7% for the next five years, and so on. The scheme also provides for a one-time payment of loyalty addition, ranging from 2.5% to 7.5% of the sum assured, payable on maturity.
   

Star Union Dai-ichi - Defined Growth Endowment Insurance is a comprehensive endowment plan with insurance cover and investment gains on maturity. While one might assume the guaranteed returns of 5-8% throughout the policy term to be an attractive proposition, the fact remains that these returns fall short of expectations when compared with the up to 10% returns being offered by many other guaranteed investment products available in the market today.