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Who Should Buy An Endowment Policy?

Published On Aug 10, 2021, Updated On Aug 11, 2021

As a result of their inclusion, plans with riders offer both savings and insurance benefits. This is due to the fact that these solutions do not involve any market risk. Endowment programmes are therefore more rewarding for investors. Determining which of the various insurance solutions on the market is right for you is crucial to your success.

Who Should Buy An Endowment Insurance Plan?

Following individuals should consider investing in endowment plans - 

  • Investors Who Are Apprehensive About Taking Risks

Planned giving plans do not involve any risk because they operate independently of market conditions. You may want to consider this option if you're not concerned about losing your money.

These returns can be evaluated according to your level of risk appetite using this tool.

  • Protection For Those Seeking Financial Security

Inheritance plans have the advantages of long-term investing and life insurance protection. Benefits include the ability to save and invest without anxiety, while still receiving life insurance coverage in the event of an accident or illness.

  • For Tax Benefits On Returns

It's a good alternative for people who want to save money on their taxes. Endowment plan investments are eligible for a tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act. In addition, under section 10(10D) of the Income Tax Act, profits arising from it are tax-free. An emergency or cash release at insurance maturity will be hassle-free.

  • Investors Of Various Ages And Phases Of life

There are different types of endowment plans available, based on the period of life you're in, as well as your demands and financial obligations at the moment.

If a young person buys life insurance at a young age, they can be assured that the prices will remain low even if they need life insurance later on in their life. Your medical exam may be affected because your premiums grow as you become older, as do the likelihood of developing illnesses.

You may also like to read:- How To Buy Endowment Policy Online? 

For endowment insurance, the maximum age is 55- 60 years old.

Endowment Insurance, on the other hand, is highly recommended because of its inexpensive premiums and life planning benefits.

  • Irregular Income Earners

An endowment plan allows you to customise the premium payment. Payables might be made on a monthly basis or over a longer time period. A flexible strategy is more appealing to investors who have inconsistent income.

Investment options include Flexible or Single Payment.

  • Smokers

As a smoker, your status will be determined by whether or not you've smoked tobacco products in the past 12 months. Tobacco or nicotine intake includes cigarettes, cigars, gutka, beedi, khaini, flavoured pan masala, nicotine patches, and chewing gum.

They still get a good price, despite the fact that they pay more for life insurance than nonsmokers.

Also Read:- Why Is The 20s The Best Time to Buy An Endowment Plan? 


Investing in endowment plans is a fantastic strategy to protect and grow your money at the same time. The first step is to assess if an endowment plan is the correct choice for you.

These tips will help you on your quest.

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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