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Do you frequently buy things, even expensive stuff, just for the sake of buying? Even when you do not really require them? Do you find it difficult to save for your future needs? If you are a habitual spender then an endowment insurance plans is just meant you.
Features of an endowment plan
An endowment plan is essentially a life insurance plan which provides the policyholder with a life cover and also helps the policyholder save regularly over a specific period of time so that he / she receives a lump sum amount once the policy matures. This maturity amount can be used to meet various financial needs such as funding one’s marriage, children’s education or buying a house.
Thus, any life insurance plan with a saving component and lump sum maturity benefit can be termed as an endowment plan. They are also commonly known as savings plans.
Endowment plans are one of the traditional forms of life insurance plans.
They are basically structured to meet the need of child education, down payment of a house or other financial goals that you may be having.
The key benefits of any endowment plan include goal-based savings, guaranteed returns with a bonus amount and tax benefits under section 80C and 10(10D) of the Income Tax Act. They also provide an option to obtain loan against the policy.
There are many endowment plans available in the market. Some plans are also available online. One of them is Wealth builder provided by Edelweiss Tokio Life. It is a plan that provides guaranteed returns and good loyalty additions (bonus amount) on maturity. You can analyse how much money you would need after few years and the calculator will tell you how much you need to save. Small savings can help you achieve big goals. You may be spending 2,000 to 3,000 over the weekend. Check out how much amount you can receive if you save that 2,000 or 3,000. So save tax, get a life cover and also get guaranteed returns.