What is an Endowment Plan?

Following are benefits that come along with a endowment e policy -

• Maturity Benefits: Endowment plans pay a maturity benefit to the life guaranteed if he or she lives to the end of the policy term. If there are any bonuses declared on the endowment insurance, in addition to the maturity benefit, a bonus is also granted at the time of maturity.
  

• Wealth Appreciation: Endowment plans are participating insurance plans that allow wealth appreciation. Every year, bonuses are announced on the endowment policy, which are additional profits delivered to the life insured. On the policy, the insurance company can declare reversionary or terminal bonuses.The bonuses are provided with the maturity benefit at the end of the policy term.
  

• Additional Coverage: The life assured has the option of adding riders to the endowment policy, which are additional coverages that may be purchased with the endowment policy for a fee. Accidental Death Benefit, Critical Illness Benefit, Waiver of Premium, and other riders are common endowment plan riders.The rider enhances the power of the base cover of your endowment policy.
  

• Tax Benefits: Under endowment policy the life assured can avail tax exemptions as premium paid for an endowment policy qualify for tax exemption under Section 80C and 10(10D) of the Income Tax Act, 1961. Maturity benefits payable under an endowment plan are also eligible for tax exemptions.

How Does An Endowment Plan Work?

Endowment plans are similar to normal insurance policies in that they provide a steady stream of income. They don't just provide life insurance; they also help you save on a regular basis. When the policy matures, providing the policyholder has survived the policy period, he or she will get a lump sum payment. This money can be utilised for a variety of purposes, including purchasing a home, paying for the education of your child, and putting money down for retirement.

Who Should Buy the Endowment Policy?

Endowment policies are one of a kind life insurance policy. The policyholders can decide the term amount while enjoying the benefits of a life insurance policy. If you belong to one of the following categories, you must consider buying an endowment policy.

Primary Earners:

Individuals responsible for their family's financial well-being, such as salaried employees, self-employed individuals, or business owners.

Long-Term Planners:

Those looking to secure funds for significant life events like children’s education or marriage.

Risk-Averse Investors:

People who prefer low-risk investments with guaranteed returns rather than market-linked options.

Tax-Savvy Individuals:

Those interested in tax benefits under Sections 80C and 10(10D) of the Income Tax Act, which apply to both premiums and maturity benefits.

Why Should an Individual Buy an Endowment Policy?

Purchasing an endowment policy offers several advantages:

• Dual Benefits: It combines life insurance coverage with a savings component, ensuring financial security for dependents.
• Guaranteed Returns: Policyholders receive a fixed sum at maturity, providing a sense of financial stability regardless of market conditions.
• Disciplined Savings: Regular premium payments encourage a habit of saving, helping individuals accumulate wealth over time.
• Tax Benefits: Premiums paid are eligible for tax deductions, while maturity proceeds are generally tax-free, enhancing overall returns.

Claim Process of Endowment Plan

The claim process for endowment plans typically involves the following steps:

• Notification: The claimant must inform the insurance company about the event (death or maturity) by submitting a claim form.
• Documentation: Required documents include the policy document, identity proof, death certificate (in case of death claims), and any additional documents specified by the insurer.
• Verification: The insurer reviews the submitted documents to verify the claim's legitimacy.
• Settlement: Upon successful verification, the insurer processes the claim and disburses the payout to the beneficiary or policyholder as per the policy terms.

Why Choose InsuranceDekho?

Here are some good reasons why you should choose InsuranceDekho while purchasing an endowment plan: .

• Easy Policy Issuance: At InsuranceDekho you can easily purchase an endowment policy easily by following these simple steps:

1. 1. Provide your personal details such as Name, Age, Mobile Number and Date of Birth
   2. Compare available endowment plans at once
   3. Select a plan that fits your needs
   4. Pay the premium and submit the required documents.

• Committed Customer Service: Our customer support team is available all 7 days of the week to provide you with effective solutions for your queries. Our aim is to be always readily available to provide you with best solutions regarding your queries.

• Availability of Best Plans: We have partnered with some of the top-notch insurance providers in India that offer you endowment plans. We strive to provide you with the best insurance plans offered by best insurance providers in India.

• Smooth Claim Settlement: At InsuranceDekho we aim to provide a quick and claim settlement, to ensure that our customers are financially satisfied in difficult times.

How To Buy Endowment Plans With InsuranceDekho?

Purchasing an endowment plan at InsuranceDekho is easy and a quick process. You can compare and purchase an endowment by following these simple steps: .

• Provide Details: To compare different quotes enter your details such as mobile number, name, date of birth and dender. Then click on ‘View Instant Quotes.’

• Compare Endowment Plans: Plans that match your requirement will get displayed and you can compare and choose a plan that best suits your requirements.

• Make Payment: Choose from the available endowment plans and make the premium payment via net banking, e-wallets or debit/credit cards.
• Submit Documents: Submit documents such as ID Proof (Aadhaar Card, Pan Card, Voter ID etc.), Address Proof (Electricity bill, Passport, Ration card etc.), passport size photos, salary slips and a filled proposal form along with medical records for policy issuance.

To purchase an endowment plan, you typically need:

• Completed application form
• Recent passport-sized photograph
• Address proof (e.g., utility bill)
• Proof of income (e.g., salary slip or tax return)
• For claims, additional documents may include:
• Death certificate (for death claims)
• Policy document
• Identity proof. (PAN Card/Aadhar Card)

Yes, endowment plans offer tax benefits under Indian tax laws. Premiums paid are eligible for deductions under Section 80C of the Income Tax Act, and the maturity amount received is generally exempt from tax under Section 10(10D), subject to certain conditions.