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Steps To Buy Endowment Plan Online

Published On May 11, 2021

Endowment plan is a type of life insurance plan which provides a combination of both i.e.  an insurance cover, as well as savings plan. Endowment policy also helps you in saving regularly over a specific period of time, so that you can get a lump sum amount at the end of the policy tenure, if the policyholder survives the policy term. Such policy is also used to secure yourself and your family post-retirement or to meet various financial needs such as funding for children's education or marriage or buying a house. The following are some steps which needs to be taken care of before purchasing a endowment plan online- 

Steps Before Purchasing a Endowment Plan Online

The following are the steps you should follow before purchasing an endowment plan online- 

  • Begin Planning Early

When it comes to investing, it is always considered ‘the earlier you invest the better it becomes’ as it offers a long horizon for your investment to grow. This, in turn, will help the policyholder to build a corpus and facilitate disciplined saving.

  • Select A Plan Which Offers Riders

There are insurers that facilitate riders as an inbuilt feature and no individual should miss to get the benefit out of it. Additional benefits may include benefits like education endowment, double endowment policy or marriage endowment policy.

  • Review Flexibility Option

 Insurers who are offering endowment plans provide flexible options i.e. in case of individuals who are regularly salaried, they can choose a regular endowment policy whereas individuals who have an irregular income may opt for a single payment option or limited premium payment option.

  • Guaranteed And Non-guaranteed Returns

Many insurance companies also offer a combination of guaranteed and non-guaranteed along with low-risk insurance and dual benefit of death cover and saving feature. The guaranteed returns such as guaranteed additions remain fixed and are payable on death or at the end of the policy tenure. The non-guaranteed returns include bonuses that are variable and depend on the investment performance.

  • Bonuses

Bonuses will be declared by the company depending on the performance of the company. When the insurance company makes profits from its investments, he distributes a part to it to policyholders at the end of each financial year. Besides, the profit of the insurance company also depends on the valuation of its assets and liabilities.

Documents Required for Buying an Endowment Plan Online

Following are the list of basic documents required to apply for an endowment policy:

  • Photograph
  • Age proof
  • Address proof/ proof of residence
  • Fully filled application form/proposal form

Steps for Buying an Endowment Policy Online

The process to buy an endowment policy online is convenient and simple-

  • Step 1. Visit the website of the insurer chosen by you and go to the plans sections.
  • Step 2. Choose the plan.
  • Step 3. You will be asked to provide some basic details like name, gender, date of birth, phone number, pin code etc. The information will be used to generate a quote.
  • Step 4. Once the quote is generated, you can choose to make the payment online.
  • Step 5. After the completion of the payment, one has to fill the proposal form. At this stage, you have to submit the required documents like age proof, residential proof and photograph.
  • Step 6. All the documents can be submitted online through the website. After the verification of the documents as per the underwriting guidelines of the company, the policy would be issued.

Also Read 

Features Of An Endowment Plan

When Should You Purchase An Endowment 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.

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