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♥ Endowment Life Insurance Policy ♥
We All Know That In Today’s Internet World All The Tech-Savy Or Computer Friendly People Goto Various Search Engines Available On The Internet Like Goolge, Bing, Rediff, etc. And Many A Times Even We Search On Some Of The Specific Endowment Life Insurance Providing Companies Websites Like Policy Bazaar, Bank Bazaar, Cover Fox, Life Insurance Corporation Of India, Max Life Insurance, etc. Whenever They Have To Buy Life Insurance Online.
So To Reduce Your Work Today We Are Going To Discuss All The Details And Where Abouts And Also How To Buy Best Endowment Life Insurance, So Dear Readers Let’s Begin.
Whenever You Are Going To Buy A Life Insurance Policy Don’t Take A Hasty Decision Don’t Purchase On The Advice Of People Firstly Understand Your Needs And Then Invest Your Money Accordingly. Endowment Life Insurance Policy Is Not Just An Investment Plan Or A Plan To Get Tax Benefits. Don’t Purchase Any Life Insurance To Save Few Bucks Of Taxes.
Firstly Allow Us To Explain You All Esteemed Readers That What is Endowment Life Insurance Policy Also Known By The Name Of Endowment Fund. As According To The Nature Of The Policy It Is A Policy As Well As A Fund Of Your Life So It Will Be Not Wrong In Calling Endowment Life Insurance Policy As A Mixture Of Term Insurance And Life Insurance. It Might Be Sounding Little Bit Confusing To You All But Friends Don’t Worry We Will Explain Endowment Life Insurance Here In Detail.
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What is Endowment Life Insurance Plan ?
An Endowment Policy Is A Life Insurance Contract Designed To Pay A Lump Sum After A Specific Term On Its ‘Maturity’ Or On Death Of The Insured. Typical Maturity Periods Are Ten, Fifteen Or Twenty Years Or Upto A Certain Age Limit. Some Policies Also Pay Out In Case Of Critical Illness. If The Life Insured Dies Within The Maturity Period The Insurance Company Will Pay The Sum Assured To The Beneficiary Or Nominee/s.
Endowment Plans, Fulfil The Dual Needs Of Life Coverage And Savings Under A Single Plan. They Are One Of The Oldest Form Of Life Insurance Policies Available In The Insurance Market.
After Knowing About Endowment Life Insurance Plan. Now Let Us Understand The Features Of An Endowment Policy.
Features Of Endowment Policy
Endowment Policy Is A Kind Of Life Insurance Policy Which Gives Protection To Our Lives For A Specific Period Of Time.
There Are Several Features Of Endowment Policy Which Are Given Below:
- A Life Insurance Endowment Policy Pay The Full Sum Assured To The Beneficiaries If The Policy Holder Dies During The Term Of Policy Or On Maturity Of The Policy If He/She Survives The Term.
- On Maturity, The Predetermined Amount (Which Is Previously Decided By The Insurance Company According To The Policy Opted For) Will Be Paid To The Policy Holder On Its Maturity.
- Limited Payments Of Premium.
- Basically The Endowment Policy Is Of Two Types One Is With Profit And The Other Is Without Profit. In These Two Classes There Are Various Changes In The Structure Of Endowment Plan Like Benefit Of Child Education, Whole Life Protection, Pension Plan And Others.
- High Liquidity.
- The Returns Are Earned On A Compounding Basis, During The Term Of The Plan.
- And The Important Thing Of This Insurance Policy Is Its Saving Oriented Plan.
Now The Point Is:
- Why We Should Purchase An Endowment Life Insurance Policy,
- What Are The Benefits And
- How It Is Fruitful For Us.
So Now Let Us Understand Why We Should Purchase Endowment Life Insurance Policy.
Who Needs Endowment Insurance policy
- If You Are A Salaried Person Then It Is A Fabulous Saving Option For You, To Save Your Income For A Special Purpose Along With The Person Who Have A Regular Flow Of Income Like Businessmen To Maintain The Flow And Secure Your Money At The Right Place So Endowment Plan Can Be A Good Option For You.
- The Person Who Doesn’t Believe In Taking Risk Then He/She Can surely Invest In Endowment Insurance Plan Because The Returns Are Sure Shot.
- If You Are An Extravagant And You Are Not Able Able To Control Your Expenses And You Don’t Have Any Other Savings And Backup Then Definitely You Should Go For An Endowment Insurance Plan.
- If You Are Looking For A Policy, Which Can Give You More Than Just Pure Life Cover, Then Endowment Plan Is The Most Appropriate Option For You.
- Lastly, The Most Beneficial Thing Is That In Some Cases The Insurance Company Also Provides Additional Benefits Like:
- Double Endowment And
- Education/Marriage Endowment Plans.
- An Endowment Plan Allows The Policyholder To Add Riders For Critical Illnesses, Major Surgical Assistances, Etc.
Now Almost We Have Shared All The Things About Endowment Plan Like It’s Benefits, Features And Why We Should Opt For This Plan, Now We Will Discuss The Different Types Of Endowment Plan And Some Important Points.
Types Of Endowment Policy:
Basically Endowment Policy Has Same Types As Whole Life Insurance Plan Like Participating And Non-Participating Which We Discussed In Our Previous Post Whole Life Insurance, To Read Click Here But There Are Slightly Differences, So We Are Discussing Here The Various Types Of Endowment Policies.
- Participating Endowment Plans (PEP): In this Endowment Policy, The Insured ‘Participates’ In The Company’s Profits Which Are Given As Bonuses. And This Bonus Is Decided By The Insurance Company From Which You Have Taken/Purchased Your Insurance Policy.
- Non-Participating Endowment Plan: In This Endowment Policy The Participants Don’t Participate In Company’s Profit. All The Proceeds Payable Under This Policy Are Guaranteed At Inception.
- Full Endowment Policy: A Full Endowment Policy Plan Is Where The Basic Sum Assured Is Equal To Death Benefit At The Start Of The Policy And The Final Payout Would Be Much Higher Than The Sum Assured.
- Unit Linked Endowment Policy (ULIP): In This Endowment Plan The Company Gives Different Ways Of Risk Coverage Along With The Various Types Of Investment Plans Like Invest In Stocks, Bonds Or Mutual Funds As Decided By The Insurer.
- Low Cost Endowment Policy: These Policies Are Basically Used To Cover Any Existing Loans Or Mortgages. This Type Of Policy Pays A Minimum Value Which Will Cover The Loan Amount Either On Death Or On Maturity.
Points To Keep in Mind While Buying an Endowment Policy:
- Like Other Types Of Insurance Plan You Also Get Plethora of Endowment Plan In The Market. However Opting For A Suitable Insurance Policy Depends On Many Factors Like Your Current Income, Your Appetite To Take Risks, Individual Needs As Well As Your Life Style Pattern.
- The First Thing You Need To Check Is The Premium Rate Because The Premium Rate of Endowment Plan Is Expensive As Compared To The Term Insurance Plan. Therefore, A Mistake Here Will Cost You More In Long Term.
- After The Premium Rate We Must Check The Insurance Company’s Track Record With Respect To Bonus Payment. Generally The Endowment Plan Give Lesser Than The ULIP But At The Point Of Safety, Endowment Plan Is Considerably More Safer Than The ULIPs. So, While Buying Insurance Plan The Return You Get Is The Most Important Factor. So Customers Should Know The Bonus Rate.
- Check The Services And Claim Settlement Ratios And The Financial Stability Of The Insurance Company.
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