Take a detailed look into endowment plans and the latest trends in this space:
What is an endowment plan?
The endowment life insurance plan gives you a comprehensive life cover and helps you save regularly over a specific period. This ensures that your family is financially secure in case of your unfortunate demise as well as you have a significant corpus to fulfil your financial goals, such as retirement, child’s education or marriage, etc.
An endowment life insurance plan pays a definite sum assured to your beneficiary in case of your demise during the policy tenure. However, if you survive the endowment policy term, you get a maturity benefit, which is inclusive of returns on your original investment. Some endowment policies also allow you to take a loan against them during times of need.
Who should buy an endowment policy?
An endowment policy offers the dual benefit of insurance and savings, which is a top need of the present. Given the uncertain market situations, you cannot always rely on your market-linked policies to secure your future or your family in your absence. You require a reliable investment plan like an endowment policy that can financially safeguard your family when you are not around. The benefit received by the family can help them sustain their standard of living and also fulfil their living expenses. Alternatively, endowment plans also offer a savings component, which helps you accumulate a significant corpus for your future. You can fulfil your financial goals such as retirement, a child’s education or marriage, buying a house, etc.
Hence, an endowment policy is for everyone who wants to safeguard their future and their family. With disciplined savings and insurance cover, the best endowment plans can be your ideal partner in times of need.
When should one buy an endowment policy?
Every person requires some form of risk-free investments and assured returns. This is a must for a well-diversified financial portfolio. Hence, all salaried people, businessmen, professionals, self-employed persons, etc., should opt for an endowment policy. Overall, endowment plans should be opted by investors who:
- Wish to protect and ensure their loved ones financially
- Want to have goal-based savings, and
- Aspire to build a corpus to fulfil their life goals
If you have an endowment life insurance, you can choose the mode and frequency of premium payment – annually, semi-annually, quarterly or monthly – as per your financial comfort.
What are the benefits of buying an endowment life insurance plan?
Here are the top benefits of buying an endowment policy:
- Guaranteed return on investment that helps you create wealth in the long term without being exposed to any market risk.
- Flexibility to pay premiums as per your financial comfort – monthly, quarterly, semi-annually and annually.
- Freedom to choose your cover as per your family’s needs and your financial goals. Best endowment plans come with add-on riders, such as critical illness, accidental permanent and total disability, accidental death, etc. that aim to enhance the insurance coverage.
- An endowment plan gives you both survival and death benefits.
- Premiums paid for endowment life insurance are eligible for tax deductions under Section 80C. The maturity amount and death benefit are tax-free under Section 10(10D).
Keeping these benefits in mind, a wise investor should opt for an endowment policy as early in life as possible. You have the chance to secure your future by investing in the best endowment plan.
Know more about term plan, term insurance and life insurance at PNB MetLife.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details
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