The Top Five Benefits Of Purchasing An Endowment Policy.
Table of Contents
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.
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).
Conclusion
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.
Also read: Are You Thinking About Purchasing An Endowment Plan? Here Are Some Things To Think About
