Save Tax, Create Wealth and Insure Yourself with an Endowment Plan
Posted: Jan 16, 2017
Avail benefits more than one with endowment plans. How is an endowment plan different from other traditional forms of insurance policies? What are the advantages of opting for an endowment plan? Which are the best insurance companies to approach for your needs?
Unlike other types of insurance, an endowment plan allows you to create wealth along with insuring yourself. While with other traditional insurance or pure insurance like life insurance or term plans, the savings component will be missing. You can avail benefits like limited payment, tenure of your choice, tax benefits and more. An endowment plan especially helps if you have long term goals to accomplish. This may include your children's education, marriage plans, if you plan to travel abroad, some retirement savings and more.
Endowment policy will help you save money over a period of time while being insured at the same time. Some part of your payment is used to buy life coverage and the rest of the amount is directed into investments. The different types of endowment policy include Unit Linked Endowment, Full Endowment and Low Cost Endowment.
On maturity of your policy, you will be paid a pre-determined amount. If the policyholder dies before maturity of the plan, your beneficiaries will receive the death benefits. Even if you surrender your policy before it matures, you do not lose your accumulated wealth. An endowment plan allows you to add riders and enhance your package. The riders you can add are critical illness, or other as provided by the provisions of your insurance company..
Endowment plan, like several other insurance products, will help you save on your taxes. Section 80C, 80D is some of the sections under Income Tax which provides for tax deductions. There may be other bonuses involved. The premiums would be based on your age, the term of your policy, and other factors depending on your chosen company. Thus, such a policy encourages your savings plan, helps create wealth and offers countless other advantages that include tax saving. Endowment plan helps you with flexibility including mode of payment (monthly or annual payments), duration, and several other options.Understand your requirements before you plan your insurance policy. Meet advisors; make thorough research before you make such financial investment. Learn about the pros and cons that come with every insurance product. Different companies may have different eligibility criteria. Websites offer premium calculators where you can get an approximate idea of premiums, and other statistical information.
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