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When Should You Opt For Endowment Plans?

Published On Jul 13, 2021 6:58 PM By InsuranceDekho

Endowment plans are structured like life insurance policies, but with the added benefit of encouraging savings over the policy's term. Investment and establishing a savings corpus are the building blocks of endowment plans, which come with a slew of advantages.

It is critical for investors to begin investing at the appropriate period in order to reap adequate long-term advantages.

As a result, we've prepared material in this post to assist you in determining the best time and scenarios for purchasing an endowment plan for yourself.

When Should You Buy an Endowment Plan?

Given below is considered the best time for an investor to start investing in an endowment Insurance plan

  • Start Young

When it comes to investing in an endowment insurance plan, the younger you start the better This is because if you are younger, you will be eligible for cheaper premium rates. Furthermore, as you become older, you may develop health issues that will raise your insurance costs, potentially forcing you to lose coverage or making it difficult to obtain coverage. Endowment plans purchased at a younger age provide a higher rate of return.

Therefore, it is advisable to buy endowment plans.

  • In Case of Financial Dependents 

When you are financially responsible for the people around you, it is the greatest time to get an endowment plan. Financially reliant parents, financially dependent children, or a retired spouse are all options. Endowment plans are a great investment choice for helping you meet your financial obligations. They also provide insurance coverage to protect your loved ones in the event of an emergency.

  • When You Start Earning

Life insurance has the extra benefit of giving a tax deduction of up to 1.5 lakh for premiums paid under Section 80C of the Income Tax Act. This should not, however, be your major incentive for buying the items. The primary objective of getting insurance is to protect you and your family from unforeseen events.

  • In Case of Debt

When deciding on a coverage limit for a life insurance policy, financial experts recommend factoring in all of your debt levels to ensure that whoever receives the money in the event of your death has enough to pay off all of your existing liabilities. For most people, a mortgage is the most prevalent type of debt.

If you have unsecured debt, such as credit card debt or student loans, life might be difficult.

  • In Case Of Certain Critical Illness

The crucial conditions are optional. In the event of a critical sickness affecting the policyholder's skin, the rider may provide financial support. The promised money is paid if the policyholder admits to filing a claim for a catastrophic illness. The critical illness rider, according to the policy, excludes certain conditions.

Riders are supplemental perks that you can add to your endowment plan.

If the Life Assured is disabled entirely and permanently as a result of an accident, the Total and Permanent Disablement Benefit is paid.


You will be confronted with a huge array of possibilities accessible in the market while choosing a good insurance plan. It's bound to make you hesitant about putting your money into a good plan at the time right. The above article will help you plan your investments at the right time.

Also read 

Who Should Purchase an Endowment Plan?

Tax Benefits In 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.     

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