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Invest In Endowment Plan To Fulfill Your Financial Goals

Updated On Aug 05, 2021

In an endowment insurance plan, you pay a specific amount in premiums for a predetermined period of time and get returns at the conclusion of the policy's term. 
 Be aware that your premium period may be shorter than your policy's operating period, which is also its term, if you want

There is a stability aspect because these plans typically pay out a substantial sum of money. Some policies and premiums allow you to pay off loans and supplement your income, among other things. As a result, endowment plans have earned a well-deserved reputation.

How Investing In Endowment Plan Helps Fulfill Your Financial Goals?

Given below is how you can secure your future by buying an endowment plan

1. Plan Your Family Responsibilities In Advance.

An endowment fund will provide financial security for your family in the case of an emergency. Even if you pass away during the payment schedule or before the plan matures, the sum insured will be paid to your pre-disclosed beneficiaries. Certain insurance companies, on the other hand, may require premium payments to be made over a period of three to five years. You'd have to verify with your service provider to be sure.

2. Payouts That Are Regular

Additionally, an endowment plan might provide you with a source of extra income. This incentive is dependent on your endowment plan. Bonuses are calculated based on a certain proportion of the policy's promised payouts each year. In most cases, the yearly bonus sum is paid at maturity as maturity benefits, however in the event of an individual's terrible circumstances, these benefits are distributed together with the insurance proceeds.

3. Returns Of Income

This is a wonderful way to save money on income taxes. As per section 80C of the Income Tax Act, an investment in an endowment plan qualifies for a tax deduction of up to Rs. 1.5 lakh. Section 10(10D) of the Income Tax Act exempts the returns from taxation. This will make it easier to transfer money in an emergency or when the insurance matures.

4. Investing For Retirement

Upon expiration of the insurance period, the policyholder receives a lump sum payment from the endowment plan. Money's possible to invest it elsewhere, or just utilise it to fund a 
financially secure retirement.


We hope the above article has been helpful to our readers who were first unsure about whether or not an endowment fund was suitable for them. It is a well crafted plan that can sustain your life goals efficiently.

Also read - Everything You Need to Know About Kotak Endowment Policy

Best Endowment Policies In India in 2021

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.

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