Why Endowment Insurance Plans Needed?

Endowment plans provide a disciplined way of saving cash for destiny economic desires. An introduced benefit is the lifestyles hazard cover which could be of outstanding assist to the own family if something untoward happens to the primary bread winner. The returns can be decrease, however they're frequently chance unfastened in case of guaranteed sum assured. Tax blessings, difficulty to sure situations, are also available on those returns.

This explains why endowment plans are desired by chance-averse traders as besides supplying cowl to an person's existence in case of an eventuality, in addition they give the maturity amount to the policyholder if he survives the policy.

Seek an expert advice from India’s Best financial advisory like MoneyMindz.com Know. How and when to avail loans without disturbing any other financial goals of life. A complete financial planning is needed to make a decision on any money-related matter, including loans. .Just leave a missed call @022 62116588 or Visit moneymindz.com. 

Guaranteed returns: These plans ensure that a stipulated amount is paid at the end of the term. If the policyholder lives until the maturity, he/she is given the assured amount. However, in case of the death of the insured, the amount is transferred to the nominee.

Things to remember: It is advisable to take the endowment plan for a minimum period of 15-20 years. The amount policy holder receives at the time of maturity is directly related to the number of years of accumulation.

Twin Benefit:

You get insurance + savings benefit. You get the money you invest with returns and also a periodic bonus at the maturity of the plan

Combination of insurance and investment:

An endowment policy is a combination of insurance and investment: The life of the individual taking the policy is insured for a certain amount. This life cover is referred to as the sum assured.

A certain part of the premium gets allocated towards this sum assured. Some portion of the premium is allocated towards the administrative expenses of the insurance company selling the policy. The remaining portion of the premium gets invested.

Additional Bonus

An endowment policy may declare a bonus every year The money that is invested generates a certain return every year. This return may be declared as a bonus. The bonus is typically generated as a certain proportion of sum assured or life cover as it is popularly known.

The bonus declared is not payable immediately:

Like is the case with a stock dividend or a mutual fund dividend which is payable immediately after it is declared, the bonus declared accumulates and is payable only when the policy matures or in case the policy holder dies.