What are endowment plans
Endowment plans are basically life insurance plans. But along with life coverage, they also provide an option to the insured for regular savings for a fixed period. After investing in the endowment policy for a fixed period, the insured gets a lump sum after that period.
You can use this one-time lump sum on maturity to meet your financial needs. In the meantime, if the policyholder dies, his / her nominee is given the entire sum assured. Therefore, any life insurance plan which includes the option of saving and a lump sum maturity benefit is called an endowment policy.
Different endowment plans according to different needs
Endowment plans are designed differently according to different needs. For example, you can give financial security to your family through pension, whole life protection or child education endowment plan. Can make goal based savings. If needed, you can take a loan on the policy. You can also get income tax exemption. Those who have the means of regular income and who want a lump sum at a fixed interval, may consider buying an endowment plan.
Endowment plan teaches the discipline of saving
Endowment plans teach the discipline of saving. Also, they are very useful during financial emergency. Endowment plans can prove to be of great use for employed people. Small businessmen and professionals like doctors, lawyers. Also, these plans can be good for those people who do not want to take the risk. Its returns may be slightly lower, but they are completely risk free and returns are guaranteed. It also has a big feature risk cover. If the policyholder dies prematurely, his family will not have to spread their hands to anyone.
How to choose
There are various types of endowment plans in the market. But for which plan is better for you, you should pay attention to a few things. For example, at what stage of your age are you, why do you need an endowment plan, how much is your income and how much risk you have the ability to take.
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