Is Purchasing An Endowment Policy Beneficial?

Endowment plans provide combined benefits of a life cover and savings opportunity. Endowment plans offer death benefits in case of an untimely demise of the life assured and a maturity benefit in case the life assured survives the entire policy tenure. Endowment plans also provide assured bonuses, as these plans are participating life insurance policies, that is these plans participate in the profits of life insurance companies as per their performance in the market. These plans offer the best of both worlds. Endowment plans provide financial security to the family of the life assured in case of an untimely demise of the life assured during the policy tenure. This plan also provides a maturity benefit that helps the life assured to fulfil his/her financial goals. 

Is Purchasing An Endowment Policy Beneficial?

Endowment plans provide combined benefits of life cover and investment opportunity. Below mentioned are some other benefits of purchasing an endowment policy:

• Dual Benefits: Endowment plans offer the best of both worlds, long term investment and life cover. Apart from death benefit payable in case of unforeseen demise of the life assured, endowment plans also provide a maturity benefit. This plan provides financial security to the life assured and the family of the life assured from the uncertainties of life. 

• Disciplined Savings: Endowment plans encourage disciplined savings habits. This plan lets the life assured to invest their money for a period of time, the invested money shall be provided to the life assured at the time of plan maturity i.e. at the end of the policy term. 

Also Read: What Does Pure Endowment Mean?

• Risk-free Investment: Endowment plans are considered risk-free investment options because the life assured gets a maturity benefit at the end of the policy term. The life assured gets total premiums paid at the end of the policy term after investing in the endowment plan for a certain period of time, which is completely risk-free. 

• Wealth Appreciation: Endowments plan allows wealth appreciation as these plans are participating in nature, i.e these plans participate in the profits of an insurance provider as per the performance of the insurance company in the market. Annual bonuses are declared upon the policy as per the performance of the life insurance company. 

• Enhanced Coverage: Under endowment plans, the life assured gets the option to enhance the coverage of the policy by adding riders, which are also known as the additional coverage which comes in exchange for an additional premium. These riders provide additional financial protection from the uncertainties of life such as diagnoses of a critical illness, accidental death or accidental total and permanent disability. 

To Conclude

Endowments plans are a great way to provide financial aid to the family of the life assured and the life assured. These are risk-free investment tools that allow wealth appreciation.

Must Read: Endowment Plan: All You Need To Know About Coverage, Suitability, And Premium

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.