The Truth You Need To Know About Endowment Policies
Published On Jun 28, 2021
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Endowment plans are purchased on a fixed term, which fetches survival and death benefits to the policyholder. The sum assured, with accrued bonuses ( if any) remains with the policyholder outruns the maturity period. If not, the sum is released to the nominated beneficiaries of the plan.While buying an endowment plan, the investors are subjected to an array of opinions. In this article, we have painted a candid picture of an endowment plan to escort you to your decision to buy an endowment plan.
Truth About Endowment Insurance Plans
Given below is the truth about Endowment plans that every investor must know
1. Endowment Plans Are Not Just For Insurance Cover
The primary feature that sets endowment plans apart from the other plans available is the dual benefit offered by them. Endowment plans provide the combined benefit of saving and insurance in one plan. The premiums deposited at stipulated time intervals help build a savings corpus to be tapped in the times of needs.
2. Risk Free Option
Investors new to the Insurance market hold assumptions of their money being subjected to several market risks under insurance plans.
Endowment plans are a great option for investors seeking security and guarantee of payout.
These plans will help ensure guaranteed returns risk free and hence can be accommodated according to your risk appetite.
3. Endowment Plans Can Be Bought With An Irregular Income
Endowment plans offer flexibility of premium to the policyholder. Depending on your income, you can choose an option of paying premium that will give you the power of depositing premium payment within your comfort range. You can choose to pay limited premiums or one-time time insurance premium in cases of irregular income.
Endowment plans are inclusive and can function well on all types of incomes.
4. Endowment Plans Are Not Just For Death Benefits
Along with death benefits, endowment plans also extend an option of survival or maturity benefits. The Survival benefit activates when the policyholder receives the sum assured upon outliving the maturity term. This feature of an endowment plan carves it out from the other insurance plans and ensures financial security of the policyholder.
5. Long Term Investment
Endowment plans are taken out on a fixed term, which can be selected at the time of buying the plan.These plans offer coverage for a long period, and will help build a saving corpus alongside over a period of time.
Investors face several varying opinions about insurance plans. Therefore, it is necessary to understand the key features of the plan you're interested in. The above article has dissected the primary features of endowment plans that you must know before investing in one.
Also Read: Who Can Opt For Endowment Insurance Plans?
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.