Should I Buy An Endowment Policy Online Or Offline?
Updated On Dec 24, 2021
Table of Contents
Endowment insurance is a type of life insurance that includes both insurance and a savings component. It enables you to save regularly over a certain length of time in order to get a lump sum payment at the policy's maturity date.
An endowment plan guarantees the policyholder's sum assured at a future date set by the policy terms and conditions. The insurance company will pay the sum assured (plus any bonus, if any) to the policyholder's nominee in the event of the policyholder's sudden death. An endowment plan can also be used to protect yourself or your family's future financial needs, such as children's education, marriage, or homeownership.
Is It Better To Purchase An Endowment Policy Online Or Offline?
Below are a few things you must know about an Endowment policy offline and online:
1. Who Should Take Advantage Of An Endowment Plan?
An endowment policy can benefit everyone, from a young professional to an elderly individual. The majority of us have obligations to our families. Furthermore, the vast majority of us have long-term, non-negotiable objectives that must be met regardless of the circumstances. In the following situations, you should buy an endowment plan:
- If you're looking for a low-risk plan with both insurance and investment benefits, this is the plan for you.
- If you're looking for a risk-free investment.
- If you're looking for a lump sum payment to meet long-term goals.
- If you want to save little sums of money over time while simultaneously benefiting from tax advantages, this is the way to go.
2. Purchasing through online mode
- Go to the company's website, such as www.hdfclife.com, and select the online insurance banner.
- Decide on an investment amount.
- You can pay with a credit card, net banking, debit card, or payment wallet.
- The plan is issued to you once the payment is completed.
- The plan information will be mailed to you at the address you provided.
3. Purchasing through offline mode
- Pay a visit to the company's local location where you want to purchase an endowment plan.
- A customer service representative will explain the terms and conditions of the company's policies to you.
- Select an appropriate endowment strategy for yourself.
- Provide the insurance company with all of the essential information and documentation.
- Make the premium payment after your documents have been validated.
4. Documents Required
- Age proof
- Address proof
- Duly filled application form
5. Working Of An Endowment Policy
Endowment plans, like traditional insurance policies, provide a consistent cash source. Not only do they provide life insurance, but they also help you save on a regular basis. And, if the policyholder survives the policy period when the policy matures, he or she will get a lump sum payment. This money can be utilised for a variety of purposes, including purchasing a home, paying for your children's education, and saving for retirement.
6. The Endowment Policy Claim Process
To make a claim on your endowment policy, go through the stages listed below one by one:
- Notifying the Insurance Company: The policyholder's nominee should notify the insurance company as soon as possible after the policyholder's death.
- Filling Out The Claim Form: The candidate should now fill out the claim form and sign it
- Document Submission: All necessary paperwork must be submitted to the company.
- Verification: After that, the company will check the documents and settle the claim if needed.
Endowment plans invest policyholder funds in a variety of products and demand higher premiums in exchange for insurance and significant savings. Similarly, these plans deduct charges from the death benefit, among other things, and then return the balance to the policyholder when the policy matures. If your goal is to profit from the protection, it's best to go with an unfiltered term insurance plan.
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.