Life is advancing daily, and along with it, expenses are increasing. Thus, investing early in any insurance policy will ensure that you are financially secure and lead a comfortable life ahead.
Financial security is one of the essential parts of living, whether it is your present or your retirement life. One cannot expect to lean on someone else for financial support today, and especially after retirement. However, an insurance plan such as an endowment plan could be an excellent investment choice, and it is one of the best saving plans in India if your goal is to be financially stable in the present and future.
Types of Endowment Insurance Plans
The endowment policy is a type of life insurance that provides two benefits. To begin with, it guarantees a sum assured to the policyholder’s family in the unfortunate event of the passing of the policyholder. Secondly, it acts as the safest retirement plans in India as it helps save for a comfortable living in the retirement phase. There are different types of endowment policies as well. Let’s have a look!
Full- Profit Endowment Plan: As the name suggests, this type of endowment plan provides bonuses along with a sum assured to the policyholder. In the event of the unfortunate death of the policyholder, the sum assured is given to the beneficiary.
Unit-linked Endowment Plan: Unit Linked Endowment Plan is suitable for individuals who are keen to invest in mutual funds. The type of policy plan includes investing in mutual funds and gaining profit from the market.
With this retirement plan in India , an individual can ensure financial safety and returns. The plan requires the investor to pay premium; some percentage of the premium is then invested in market-linked plans to gain higher returns. However, the final return of the program solely depends upon the endowment plan's net asset value (NAV).
Low-cost Endowment Plan:
The plan is less costly compared to the other plans. The plan comes with a low premium, and also includes yearly bonuses as well. The individual can withdraw a part of the investment in any case of emergency.
Benefits of the Endowment Plan
The endowment plan is the best saving plan in India, including two-fold insurance cum investment plan benefits. Thus, it provides many benefits to the beneficiaries. Here are some benefits of an endowment plan.
1. Creating Wealth:
While being in a retirement phase, one must need to ensure financial independence. Thus, an endowment plan provides a great way of creating wealth. This best saving plan in India is an essential saving plan that provides a good amount of corpus at maturity. Moreover, the insurance plan also offers additional bonuses to the policyholders, increasing the wealth further.
2. Financial Security:
One of the reasons why insurance plans are necessary is because it provides the policyholder or the family members the essential financial protection both in the present and the future. It creates a financial net around the family by offering them a lump-sum amount if something happens to the insured. It also ensures financial protection by acting as a reliable savings fund if the policyholder survives the policy term.
The saving plan of the endowment policy also includes many additional bonuses that can be redeemable upon maturity.
3. Options for Loan:
An endowment plan can be used to secure loans. Even after retirement, one might need loans, and the individual can get a loan against the policy.
4. Flexibility in Premium Frequency Payment:
Insurance policy premiums can sometimes be financially worrisome for the policyholder. However, in an endowment policy, the individual has the freedom to decide the premium payment frequency. The premium payment can be made monthly, semi-annually, or annually, giving freedom to the policyholder.
5. Maturity Benefits:
One of the most important benefits of an endowment plan is the maturity benefits. An endowment plan offers additional bonuses that eventually increase the value of the maturity.
The best saving plan in India, like an endowment plan is much needed in today's time to ensure a financially comfortable lifestyle in the retirement phase of life. Thus, investing in a well-executed insurance plan is necessary as life after retirement depends upon savings and properly planned investments.