Endowment plans are often mistaken as mundane Insurance plans. Rather they come as a combo that can cover risk along with maturity benefits. They can turn out to be the best long-term investment. Before buying an endowment plan we must understand the benefits that it offers. At the same time, we must know the factors that can impact our decision of buying an appropriate endowment product. Traditional plan or Life Insurance Plans are other terms used in the context of endowment plans.
Endowment plans come in two categories with and without profits. People like to buy endowment plan with profits because of lots of additional benefits it offers as compared to the one without benefits. Endowment plans without profits are also referred as term plan. Usually with endowment plan policyholder can get the benefits even after his survival. Best way to invest in endowment plan is by understanding all its advantages as elaborated below.
Advantages Endowment Plan Can Offer
One of the best advantages an endowment plan can offer is the tax saving. As per section 80 c & 80 d, we can save some amount of tax with the help of these plans. This is one of the greatest benefits that an endowment plan can offer. As it can help not only in saving tax but gives us the chance of further investment in plans that are tax-free. So in a way, it offers dual benefits. Tax benefits at the time of maturity are subject to few conditions. In order to check the same, you must read the policy documents carefully.
Many insurance companies facilitate its users with loan after the locking period. This option is available only in the endowment plans. You can take the loan against a certain percentage of the surrender value. The loan can be availed without any documents in such policies.
After the tenure of the policy, insured is always benefited with maturity benefits. The amount that a policyholder gets is much more than the sum insured. He gets an additional bonus on maturity.
After the policy tenure Insured can avail the advantage of lump sum money. This lump sum amount is good enough to meet any huge expenses.
Percentage of returns that you can get through these plans is twice or thrice than your investment. This is because the bonus gets accumulated and you can enjoy the additional funds.
Covers Risk of Life
If during the term of the policy, the Insured gets expired than his beneficiary can claim the sum insured.
By buying suitable endowment plan you can always get an assured amount that can act a pension fund. This can help you in securing your life even after retirement.
Meeting major expenses
Endowment plan is the pool of accumulated funds. After the tenure of the policy, you can surely get the funds along with added value. This corpus of the amount can assist in meeting any major expenses.
Factors That Can Help In Choosing The Right Plan
So many insurance plans can often lead to confusion. Premium can be one of the important determinants before selecting an insurance plan. It can be easily calculated using any online comparison sites. Some of the leading endowment plans to choose from are as follows.
Birla Sun Life
To get the quotes from insurance companies you need to enter a few details. This information can be related to your personal attributes. All the data entered can help you with the amount of premium from many insurance players. This can definitely affect your buying decision. Factors that are required to enter in online premium calculators are as follows.
Any other input
After getting the amount of premium you can check other factors as well before making the final decision.
Choosing the plan is directly related to your financial goals. Bigger your goals better you can invest in the plans. It’s good to visualize about all your financial milestones and buy suitable insurance plan accordingly.
Every endowment plan may have a different feature as compared to other. Some plans may offer something unique. You can always check the same before finalizing your policy.
Rider is an additional feature that every endowment or life insurance plan offers. You can always check about various rider benefits these endowment plans offer and decide about the plan accordingly.
How To Buy An Endowment Plan?
Online Comparison Website
One of the most preferred media of buying an endowment plan is through any of the online comparison websites. They can help you with an online premium calculation with ease. Besides that, you can also compare the features of various insurance companies easily. After checking all the details making the payment is also very convenient and secure at the same time.
As soon as you make the payment policy comes in your inbox. This is one of the fastest yet simplest ways of buying any insurance plan. There are flexible ways of making payments as well. You can do it through NEFT, net banking or any other preferred way as facilitated by these web aggregators.
Mobile apps is another way through which endowment plans can be purchased with ease. All you need to do is download the app of the website and proceed with the payment on your smart way. It is as simple as buying it on your desktop. It’s just a matter of preference.
Last but not the least there are other channels that are quite traditional. One of the ways by which these endowment plans can be brought is through middlemen or distributor. It is not much-preferred channel as the cost of premium through this channel may be little high.
Buying a suitable endowment plan after considering all the factors above can definitely assure best returns.
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