Generally one assumes that insurance policies do not offer any investment value and do not have any liquidity for the policyholder. We think that life insurance policies only hold any value to the beneficiaries after the policy holder’s demise. However, a few policies like traditional endowment plans do help in achieving our personal financial goals.
An endowment plan is an insurance product which doubles up as an assured income plan. This is called an endowment policy. When you get endowment insurance, you get the benefits of both: Insurance as well as investment.
What Is Endowment Insurance?
An endowment plan is a life insurance policy, wherein you pay a fixed amount in your premium for a pre-discussed time interval and get returns after the course of your policy's “term.” Your premium span can be lesser than your policy’s operating period, which is also its term.
Since endowment policies often pay you a significant amount of money, there is a stability factor. Depending upon the policy that you choose and your premium size, the payments may even be enough to pay off loans, supplement your income, and more. So, earning themselves a justified name – income assured plan.
3 Goals That You Can Fulfil With an Endowment Scheme
Pay off your debts: The greatest advantage of your endowment funds is that it can help clear out your loans and borrowings. If you plan on purchasing your dream house, you would either need a huge loan or a considerable endowment fund. With endowment insurance, you might even be able to avoid these loans, which come at high penalizing interest rates and ultimately take more than they give! A few insurance companies even offer you lucrative bonuses.
Plan your familial duties: The plus side of an endowment fund is that it will also take care of your family in an eventuality. The sum assured will be paid to your pre-disclosed beneficiaries even if the demise has been during the payment schedule or before the plan matures. A few insurance companies might have a mandatory payment schedule of 3 to 5 years, throughout which the premium payment has to be made. So, ensure to check this with your insurance provider.
Post-retirement finances: Since these policies, upon the completion of policy period, provides policyholders a lump sum amount, one could then invest it elsewhere or simply use it to live an independent, financially sound retirement life.
If you would like to have our help in choosing the right plan, then please call us at 9818510748, and one of the experts will be more than happy to help you.
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