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Why You Must Consider An Endowment Plan Above Other Life Plans?

Published On Jan 07, 2022

Endowment plans are those that combine insurance and investing into one policy. Such plans are long-term life insurance contracts in which the policyholder must pay premiums for the duration of the policy or may choose to pay them all at once or in installments. The policy's benefits are paid out either on the death of the life assured or at maturity if the life assured survives the policy's term. The sum assured plus accrued bonus (if it is a with-profit endowment policy) or merely the sum assured (if it is a non-profit endowment policy) is paid as a death benefit under the plan, whereas maturity benefits are sum assured plus accumulated bonus or guaranteed additions by the plan. An endowment plan with profit, on the other hand, provides superior returns because the insurance company's profits are also passed on to the consumer through this plan.

Why You Must Consider An Endowment Plan Above Other Life Plans?

Below are a few reasons why you must consider an Endowment Plan above other Life Plans:

1. Assured Peace Of Mind

Everyone desires a stress-free existence. Both insurance and investment protection are provided by an endowment plan. Obtain a sense of security. This plan provides life insurance to the nominee in the event of the assured's death, and the policyholder is eligible to receive the maturity amount if you live to the end of the policy period.

2. Goal-Oriented Savings

You can easily attain your financial goals by investing in an endowment plan and accumulating a large corpus at the maturity of the policy.

3. Ensure Your Loved Ones' Financial Security

In today's uncertain times, ensuring financial security is critical. In the case of the assured's death, an endowment plan pays the death benefit to the designated nominee/beneficiary. It aids the nominee or family in dealing with sudden financial loss, whereas an emotional loss takes time to recover from.

4. For The Purpose Of Accumulating Funds

By investing in an endowment plan, you will be entitled to a lump-sum payment at the maturity date, which you can use to accomplish your financial objectives.

5. To Reach Financial Goals

Endowment policies assist you in achieving financial objectives or goals at various times of your life.

If you live to the end of the policy term, the proceeds from the maturity benefits can be used to achieve these goals.

6. Examine Your Monetary Objectives

Before you invest in an endowment plan, you should evaluate your financial objectives throughout various times of your life. It assists you in determining how much you should invest so that you can easily accumulate a large corpus at the policy's maturity. The bigger the investment component of the plan's premium, the higher the returns.

7. Assess Life Cover

An endowment plan also includes life insurance in the form of a lump sum payment to ensure that your family is financially protected in the event of your death. It's one of the most crucial factors to consider when looking for happiness in the family. To begin, think about your financial commitments, such as your children's school, marriage, or debts, and then select a coverage amount that will ensure that your family is not overloaded in paying your financial obligations if you are unable to do so.

8. Read The Expert Reviews

Don't forget to check professional reviews before making any decisions about which plan to purchase. There are a number of industry expert assessments that can help you choose whether or not purchasing a specific endowment plan will be beneficial. You can also discuss the strategy with your friends, coworkers, and family.


An endowment plan is an insurance-cum-investment option in which you pay a recurring premium for a set period of time and get a guaranteed cumulative corpus as maturity value at the end of that period.

Furthermore, the sum assured is paid to the policyholder's nominee even if the policyholder dies within the policy’s lifetime.

Also read - How Does An Endowment Insurance Plan Work?

Why Should I Choose InsuranceDekho For Buying My Endowment Policy?

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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