An endowment plan is a life insurance plan that offers a life cover and helps you grow your money. It provides returns that are fixed at the time of the purchase of the policy. It can be used to save for various goals like buying a house, your child’s education or marriage, starting a new venture and more.
Who should consider buying an endowment plan?
An endowment plan can be ideal for creating an alternative source of income. It can offer you a lump sum income in the future. In addition, the plan provides your loved ones with financial protection in case of an unfortunate event. This type of life insurance can be suitable if you want to build savings at low risk while securing your loved ones financially.
What are the advantages of endowment policy?
Endowment policies offer the dual benefit of life insurance and savings. They provide financial security for your family in case of an untimely death and also help you build a lump sum corpus for future goals like buying a house, child’s education, or retirement.
Why should we buy endowment insurance?
Tax benefits: Endowment policy insurance typically offers tax benefits under section 80C of the Income Tax Act. The premiums paid are eligible for tax.
Guaranteed returns: Endowment policies offer guaranteed returns on the investment amount, ensuring that the policyholder receives a lump sum at the end of the policy term.
Disciplined saving: Forced Savings Discipline. Regular premium payments instil a habit of disciplined saving, which is crucial for long-term wealth accumulation
Dual Advantage: They provide life cover and act as a savings instrument. This dual benefit means financial protection for your family and a lump sum payout
Maturity benefit: Along with the guaranteed sum assured decided at the time of purchasing the policy, additional guaranteed benefits along with bonuses
Riders: Option to Buy Riders. With an endowment plan, policyholders can buy additional riders to maximize their benefits. Riders offer various benefits
Financial security for family: It ensures that yourfamily’s financial needs are taken care of in your absence, providing peace of mind
Flexibility.: Some endowment plans provide flexible cover, ie, the life cover can be increased or decreased during the policy term depending on the ability
Fixed Premiums: The premium is decided depending on the sum assured and the policy term. This helps you to choose the sum assured and the policy term.
Accruing Bonuses: Offers a combination of guaranteed returns and bonuses based on the insurer’s profits. Choosing the right endowment plan depends on financial goals & risk.