Do you always end up splurging your money in things that are not necessary? Do you end up thinking why did I spend my entire salary? Do you always think about saving but somehow you are unable to? Then an Endowment plan is for you!
An Endowment Plan caters to the need for saving. It is simple, upfront and transparent.
Endowment plans are designed to pay back a lump sum amount after the policy term which is also known as maturity or on death of the policyholder. It provides a living benefit to the policyholder as a payouts along with insurance coverage.
The policyholder gets the returns either at death or after certain years of the premium payment.
Features of Endowment Plan
- An Endowment plans serves dual purpose savings and protection
- On maturity, a pre-determined will be paid to the policyholder
- In case of demise, the beneficiary would be entitled to the sum assured or the maturity amount, less outstanding premiums, whichever is higher
- The returns are earned on a compounding basis along with some loyalty additions
- High Liquidity
- One can also get loans for unforeseen expenses.
- It also provides tax benefits under section 80C
- The returns are also tax exempted under section 10 (10D)
In addition to the basic benefits discussed above, endowment plans are ideal for child education and marriage savings. If you are looking for a plan which gives you guaranteed returns along with tax benefit then an Endowment Plan is the most appropriate option. It is a right policy for the people of any age group and saving capacity. An endowment plan will bring stability in your financial portfolio.