What is Endowment Plans - Benefits, Meaning

Hi friends, hope you are doing well, today we will talk about What is Endowment Plans, Endowment Plans Meaning, Endowment Policy Meaning, Endowment Plans in Insurance

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In this article we will tell you what is Endowment Plan? What are its benefits? How is it different from other life insurance policy plans and what are its benefits? All of you are requested to read this article from beginning to end and choose the best insurance plan for yourself.

What is Endowment Plan?

Unlike the Term Insurance Plan, the endowment plan pays you the insurance amount along with investment and death benefits. Where you can start term insurance plans with low premium.

On the other hand endowment insurance plan charges a high premium fee. Which is then invested in the asset market as loan and equity. Endowment is a policy in which the insurer promises to pay you a lump sum amount at the time of maturity.

The maturity of the endowment plan can be up to a certain age limit like 10, 15 or 20 years. Some of these plans are also such that you pay some amount in case of critical illness.

In endowment plan, you get the amount quickly, in which the insured gets the surrender value. It is determined how long the policy has lasted and how much is invested in it.

Type of Endowment Policy?

Friends, there are basically three types of endowment policy, which any person can choose. Let us know about those three endowment policies –

Unit Linked Endowment Plan: Under this policy, the insurance premium is directed to several units. Which is organized under a specific investment fund, which the insured can choose himself.

Full Endowment Plan: Under this, the principal amount to be provided is equal to the death benefits. Apart from this, the last payment is comparatively higher on the estimated market rate base.

Low Cost Endowment Plan: Friends, this endowment plan is for deposit funds by individuals. Which are paid after the specified time period.

Key Features of Endowment Policy

In this, on death under the policy period or on survival till the end, you are given the insurance amount under the endowment policy.
Endowment policy is available in the form of “With profit” and “Without profit” plans.
Under the endowment policy, the bonus for the full period is given both on the date of maturity or in the death condition.
In this, the premium can be limited to a short period or can be paid as a single premium.
The premium expires on death or at the end of the period, depending on which of the two is happening first.

What are the Benefits of Endowment Policy?

Friends endowment policy provides us with many benefits, some of which we are telling you below –

An endowment plan offers insurance cover during the policy period only.
At the end of the policy period, all the amount is paid in a lump sum.
This plan serves our dual purpose, it works as an insurance policy for us. Along with this, it also offers long term investment which gives good returns.
Endowment policy also gives us tax benefits.
If we talk about investment, then endowment policy is more safe than other investment option. It offers the same return as the return of mutual funds.
Endowment policy makes it easy for you to save for a long time period.
On taking endowment policy, you give a very big amount at the time of maturity.
In this, most endowment plans extend insurance, and provide assurance benefits even after maturity date.
In this, you get the option to choose extra riders, which provides cover for any specific disease, critical illness disability, etc.

How does Endowment Policy work?

This policy is not very difficult than regular premium insurance policy. Because these policies not only provide the necessary cover, but also help in investing in a fixed time period.

Under this, the insured person or his family receives the maturity amount in a lump sum. Which is used for the purchase of the insured person or his family property, in child education, in marriage or in life after retirement. As can be done to meet the financial needs.

In this way friends endowment policy works for us, if you do not invest. So we suggest you to take an endowment policy so that you get used to investment and savings.

Here you can read more ….

Conclusion

In this way you do not only cover the life of yourself and your family members. Rather, you bring a change in yourself by investing and saving.

Hope friends, you must have liked this article of ours and you must have got a lot of information from it. If you want more information about insurance, then you must tell us by commenting below.

Friends, if you have any question, then definitely tell by commenting below, we will be happy to help you. Along with this, share this article of ours with your friends on social media.

What is Endowment Plans – Benefits, Meaning