What Is The Best Way To Buy An Endowment Policy Online?

An endowment policy is essentially a plan  which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time. Such disciplined savings enables the policyholder to get a lump sum or regular income to fulfil long-term financial needs such as children’s education, marriage, retirement goals etc. In the event of the unfortunate demise of the policyholder, the endowment policy provides meaningful financial support to his/her beneficiaries.

Benefits of Endowment policy

• Life cover ensuring financial protection for your loved ones, in your absence
• Inculcates the discipline of regular savings to meet your future financial needs
• Helps accumulate a savings corpus to serve your long-term investment goals
• Endowment plans offer tax exemption on both premium payments and on maturity/death benefit - under section 80C and 10(10D), respectively
• Some endowment plans also provide you the option to avail loan against the policy, in case of a financial emergency

How To Choose The Best Endowment Plan?

• Opt to pay premiums as per your saving capabilities - Individuals with a steady regular source of income could opt for the regular premium payment endowment policy, while those with irregular income, can choose the single premium option. Select an endowment plan which offers you ample options to choose the number of years you would like to pay the premiums and the frequency of such payments.

• Rider benefits – You can also opt for additional benefits in the form of riders with an endowment policy. You can select an endowment plan which offers you the benefit to safeguard against unfortunate events like accidental death, disability etc. and thus expand your insurance coverage.

• Company credentials –

• Claim Settlement Ratio - The claim settlement ratio of an insurer is the number of claims settled against the number of claims filed: the higher the ratio, the better the insurer.

• Solvency Ratio - A life insurance provider with a high solvency ratio is more likely to be financially stable and therefore, more equipped to pay out your insurance claims and survive for a long time. Higher the ratio, better is its ability to settle claims.

• Customer Centricity - A company’s commitment to service excellence should hold top priority. You, the customer, should always be at the core of the company’s operations, and should be dealt with, with empathy and understanding. 

• Digital Strength - Access to online tools, literally at the click of a button, whether at the time of purchasing a policy, paying a premium, renewing the policy, resolving a complaint or settling of claims will ensure a convenient and hassle-free customer experience for you. 

Conclusion

Protection and savings to build a corpus make endowment plans one of the most robust financial tools to cushion your dependents from uncertainties of life and achieve your financial goals. Keeping the above factors in mind while buying an endowment plan will help you get the policy best suited to your needs.

Also Read: Planning to Buy an Endowment Plan