Spending is part of daily living. But, most of us are habitual to just spend on things that we may not even need. E-commerce sites and their eye catching offers keeps us tempted to buy more and more. Are you also a habitual spender? Not to worry! Here is how you can stop overspending and start saving money aside for future needs. Getting an endowment policy is an ideal way to start savings for your future goals and build a long-term corpus.
Endowment policy is an insurance plan that offers you the dual benefit of life cover and savings. Corpus paid out by the policy on maturity can be used to fulfil your dreams like building a house or for children’s higher education or marriage. This can also be used as a retirement corpus. Basically, policy holder is required to pay the regular premium for a specific period of time. At the end of the term, he would receive a lump sum amount as maturity benefits if he survives the term. Sum assured is paid to beneficiaries in case policy holder dies during the term.
Anyone who would like to save for long-term financial goals along with availing a life cover can consider buying an endowment policy. Along with providing tax benefits, these traditional endowment plans are safe investment options suitable for risk-averse investors. When we talk about insurance, term insurance comes first to the mind. Being the pure insurance plan it has an edge over endowment plans.
Why are Term Plans Important for You?
Term plan is the basic and pure form of insurance that provides higher life cover at a lower cost. But, the plan does not pay back anything at the end of maturity. Term plans are important if your primary need is to avail life protection.
On the other hand, endowment plans go one step forward and help you meet future financial goals along with life protection. If you are someone who is looking for an extra coverage along with an option to grow your savings, endowment plans are an ideal choice for you!
Thanks to the internet! Buying an endowment policy now is just a click away. You can compare various plans from different insurers on the basis of features and quotes and then buy a right plan instantly online.
Best Endowment Plans of the Year
Here are some popular endowment plans with some amazing features.
| Plan Name | Policy Term (in years) | Entry Age (Min-Max) | Maturity Age(Min-Max) | Premium Payment Term | Payment mode | Sum Assured (Min-Max) |
| Reliance Endowment Plan | 5 to 35 | 5 to 65 | 18 to 75 | 5 to 35 | Yearly, Half-yearly, Quarterly and Monthly | Rs. 25000 – No limit |
| Kotak Premier Endowment Plan | 10 to 30 | 18 to 60 | 70 | For regular pay : same as policy term
For limited pay: 5,7,10 and 15 |
Yearly, Half-yearly, Quarterly and Monthly | Rs.61317 – No limits |
| LIC New Endowment Plan | 12 to 35 | 8 to 55 | 75 | 12 to 35 | Yearly, Half-yearly, Quarterly and Monthly | Rs.100000 – No limit |
| SBI Life Endowment Policy-Shubh Nivesh | 5 to 30 | 18 to 60 | 23 to 65 | 5 to 30 | Yearly, Half-yearly, Quarterly, Monthly and Single | No limit |
| Bajaj Allianz Endowment Policy-Save Assure | 15 to 17 | 1 to 60 | 18 to 75 | Policy term minus 5 years | Yearly, Half-yearly, Quarterly and Monthly | Rs. 100000 – No limit |
Here are some of the special features of these plans.
Reliance Endowment Plan
- It’s a traditional non unit-linked plan with bonus facility.
- Policy comes with an in-built premium waiver rider and four other optional riders.
- Term life insurance benefit, accidental death and disablement, critical conditions and life insurance family income benefit rider are the four additional riders available in the plan.
- Loan against policy option is available after completion of three years.
Kotak Premier Endowment Plan
- Its traditional participating limited pay endowment plan with bonus facility
- Plan pays out 5% p.a (simple interest basis) of basic sum assured as guaranteed additions during the first 5 years of policy.
- Revisionary bonus will start to accrue from 6th year of the policy.
- Policy comes with seven other optional riders.
LIC New Endowment Plan
- It’s a traditional plan with bonus and guaranteed returns. Bonus includes both simple revisionary bonus and final addition bonus.
- Large sum assured rebate is available
- Loan against the plan can be availed
- LIC’s accidental death and disability benefit rider can be availed at an extra premium.
SBI Life Endowment Plan –Shubh Nivesh
- It’s a participating endowment plan with an option to choose a whole life coverage. Plan comes with a bonus facility
- Three additional optional riders are available in the plan
- High sum assured rebate is available in the plan
Bajaj Allianz Endowment Policy- Save Assure
- Guaranteed returns endowment plan with bonus facility
- Loan facility is available under the plan
- Maturity benefits can also be received in monthly instalments over a period of five to ten years.
Conclusion
In a nutshell, endowment plans are an ideal investment avenues for risk-averse investors to meet their long-term financial needs along with its added benefit of life insurance. Now, start planning for future needs and inculcate a disciplined savings habit in you by availing endowment policy. You can effortlessly get the right endowment plan best suited for your need on Coverfox. You can use their online tool to compare policies of various insurers side by side and make an informed investment decision.
