Owing to the various benefits of endowment plans and policies, many people treat them as one kind of investment schemes.
Endowment plans are excellent if youwho wish to save for certain financial goals in your life.
But keep in mind that if and only if you have a regular flow of income, you should consider buying an endowment policy.
What is an endowment plan?
An endowment policy is also a life insurance policy which not only covers the life of the insuredbut also helps the policyholder to spend responsibly. If he or she is able to survive through the specific time of the policy period he or she will be getting a considerable chunk of funds.
Thus an endowment plan both satisfies the purpose of savings as well as life coverage of the insured.
Endowment plans are generally categorized into two types, with profit, and without profit. These two types are again subdivided into other variations like pension plans, whole life protection and education of children. All you have to do is to Choose the suitable endowment plans to get an insight into endowment plans
Should you really buy an endowment plan?
If you are one of those people who love to spend and splurge, the endowment plans should be good for you. Along with fulfilling all your dreams and desires, if you can also save a part of your earnings for the future, then that is going to bring the perfect balance to your life. Endowment plans are also excellent for salaried individuals, doctors, lawyers as well as small businessmen. With a suitable endowment plan to your name, you can have the peace that comes with financial stability.
Moreover, this investmentwill be totally free of any monetary risks. It will act as an assurance for the policyholder who can look forward to a return of a lump sum when the policy reaches its maturity or end of the term. But if you are a pro at savings and only want to buy an insurance policy then you might not choose to go for an endowment plan since it is considerably pricier than others.
Important factors to consider before buying an endowment plan
Before buying an endowment plan, make sure to examine some specific factors.
- Think about your current income or the amount of risk you are ready to endure before buying a specific plan.
- You should check and compare the premium rates of various endowment plans of all the financial organizations.
- Try to pick a simple plan rather than a complicated one, to steer clear of confusions and catches
- If you are a salaried person,then going for an endowment plan will make sense. Otherwise, if your pay is dependent on commission and bonus then you should consider buying flexi pay or single pay plans.
- Make sure to read the insurance document careful to detect any hidden tricks behind the shiny print.
- You pick a reliable and well-reputed insurance provider company when you choose the suitable endowment plans for your needs.