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How Endowment Plans Help You In Wealth Maximization?

Maintaining a saving account in banks or just saving the money in house is of no use. Because the amount will be same it will not be increased so why they don’t we take any Endowment plans to increase your amount to some extent. The Endowment plans will work like a backup plan for you […]

Maintaining a saving account in banks or just saving the money in house is of no use. Because the amount will be same it will not be increased so why they don’t we take any Endowment plans to increase your amount to some extent. The Endowment plans will work like a backup plan for you as these plans offers maturity benefit as well as death benefit. In case of sudden death it will be like a boon for your family members as they don’t need to face any kind of financial problems.

What is Endowment plan?

It is just like an insurance plan which offers a good amount of money to a policy holder. It is especially for the one who is looking for a guarantee of money return rather than a high return. It will be more beneficial for the one who is investing money on endowment plan for a period of about 15 to 20 year as the amount after the maturity period is quite high. Along with that some bonus amount is also added to the actual amount.

Moreover everyone can enjoy the benefits of Endowment plan as it is for all. Many endowment plans are available you just need to select the plan according to your wish. Following are the some Endowment plans which are very much popular now in the market.

Unit-Linked Endowment

This Endowment plan is especially for the one who is ready to play with the market and the one who is ready to take a risk as the risk can result into huge profit. This Unit Linked Endowment plan comes with amount saving plan along with a life coverage opportunity. This plan allows you to invest your saving amount on the market shares and the return will depend on the performance of the market on which you invested.

Full endowment

A good amount of money return is assured at the start of policy which is same as the death benefit in Full endowment plan. The amount which you invest in full endowment plan is again invested by the company into some other department and the bonus is added to your amount every year. The full endowment plan assures you that the money return will be quite high than the amount which was guaranteed.

Non Profit endowment

This Endowment plan is especially for the one who is looking for a life coverage plan. This Nonprofit endowment plan only comes with a life coverage plan not a single bonus amount will be credited to your original amount as investment is not done in any of the shares. Along with it the policy mortgage opportunity is also disabled for this endowment plan.

Low cost Endowment

This Low cost endowment plan comes with the mortgage benefit. The policy holder can keep the policy on mortgage. The amount return is low with comes with a life coverage opportunity and in case of sudden death of the policy holder some minimum guaranteed amount is paid to the family but sometime to clear the mortgage amount the investors increase the premium amount.

Unitised with profit endowment

This Unitized with profit endowment plan is for the one who don’t want to take the risk and just wish to keep the amount safe. The return value is minimum in this endowment plan but the amount which is guaranteed at the start of the policy which remain unaffected. The ups and down in the share market will not affect the money at all.

The Endowment plan assures you the high return as compare to other plans. Along with it this plans act as a saving plan which helps you to achieve your financial goals. Moreover there are some Endowment plans which come with the double tax advantage. This is reason why today the people are interested for investing their amount on Endowment plans.

It is very important to note that the premium for an Endowment plans need to be paid for entire policy tenure. If you wish to pay a lump sum amount then check for a single premium option. Those who are looking to pay premium for a limited period then go with the limited premium option while for an entire policy tenure check for the regular premium option. You can choose any of the option according to your convenience. This Endowment plan provides a life time coverage for the entire policy tenure in case if a policy holder dies then the policy amount is offered to the nominee and after that the policy is terminated.

The Endowment plan help us to save more money as like other insurance plan it protect our family financially in case of sudden death along with it the amount which is offered after the maturity of the policy is also quite high then other plans.

If you see no one will give you the guarantee of money return today but Endowment plans gives you a guarantee of money return along with the bonus amount.  Another advantage of Endowment plan is the benefit in paying taxes such as the premium investment around 1 lakh per annum is tax free according to the section 80c along with this one more benefit of endowment plan is that the maturity amount is also tax free. This will save your good amount of money.

Moreover you can also apply for the loan on this endowment polices as the policy plan is for long time along with it a good amount of money is saved during this period which will help you in sanctioning your loan amount. If you apply for a loan in a bank then it takes time to sanction the amount along with it the high amount is rarely sanctioned. Moreover the interest rate is quite high. Well it is different for different banks but still it is comparatively high. So investing in endowment plan will help you more to save your money and earn profit.

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