What is a Three Payment Plan?

It is an endowment policy for which a part of the sum insured is paid to the policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The risk cover on the life continues for the full sum insured even after payment of survival benefits and bonus is also calculated on the full sum insured. If the policyholder survives till the end of the policy term, the survival benefits are deducted from the maturity value.