A life insurance policy is a legal contract between a policyholder and an insurance company. With a life insurance policy, you get financial security and the ability to protect your family if something unfortunate happens to you. They are excellent instruments to ensure your family will stay protected in your absence. However, a normal insurance plan's features end here. Apart from the insurance coverage, a normal insurance plan will not offer any distinctive features to the policyholder. If you're looking to buy an insurance plan that will provide you with assured returns and the ability to build wealth systematically, you must learn about endowment policies and their features. An...
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A family without a life insurance policy is certainly not secured in the current scenario. Economic and other challenges can thwart short-term and long-term goals and it would be worse if you were not around to support your family. Thus, savings, investment and insurance, are basic needs rather than wants! Based on your financial status and income pattern, you should invest in appropriate instruments to secure your future. There are different types of life insurance plans that offer comprehensive benefits. An endowment life insurance policy is one of the prominent ones among them. Let us understand this plan in detail. An endowment plan refers to a life insurance policy that offers dual...
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Investing often plays an essential role in helping individuals achieve financial health – and in Singapore, endowment plans – sometimes referred to as endowment insurance plans – are among the most popular investment tools that people turn to. These policies, however, come in several forms and the key to finding the right plan that suits one’s needs is understanding the different benefits and features available. “The right endowment plan for you should be based on a holistic financial plan that enables you to achieve financial wellness through a realistic budget, adequate insurance, and investing to make your money work harder, as well as home, retirement, and...
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An endowment life insurance plan is a policy that is a mixture of insurance coverage and savings plan. Investing in this is eligible for tax benefit under section 80C of the Income Tax Act. Though these plans look attractive by providing multiple solutions, they should be avoided since they fail to provide an adequate life cover and usually fail as a good investment product. If one is already invested in this plan and now wants to get out of it, they can surrender the policy. It is never too late to quit a bad investment. It is likely that a huge chunk of the invested amount might be deducted as a penalty, but it may still be wise to surrender it. There's a small implication on how...
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One of the major dilemmas that almost all insurance seekers face while choosing a life insurance plan is whether to buy a term or an endowment policy. Such a dilemma is natural as not many people have detailed knowledge about different types of life insurance plans. For starters, both term plans and endowment plans are traditional life insurance plans. Both offer comprehensive life coverage and are good tax-saving instruments. But there are a few differences between them as well. Before we go straight into the analysis of which one is better, let us discuss the basic differences between these two. Insurance vs. Investment The first and the major difference that lies between a term plan and...
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Choosing the best life insurance policy for your needs represents an essential step toward safeguarding your family’s future. While you’ve likely heard of term life and permanent (whole) life insurance policies, you might not have considered an endowment life insurance policy. This form of permanent life insurance offers a range of benefits. In contrast to traditional life insurance – which pays benefits when the policyholder dies – endowment insurance policies pay benefits after a pre-determined term has passed. Terms generally range from 10 to 20 years. When the insurance endowment policy reaches maturity, the policyholder receives the full benefit amount, also known as the face amount...
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Like other types of permanent life insurance, endowment policies are a balance of security and investment. They provide reasonable coverage while investing your money and offer a guaranteed lump sum payout, called an endowment, at the end of the policy term. They suit individuals with specific savings goals, such as providing an education for their children, funding an expensive trip, or acquiring real property. As a low-risk investment insurance policy, however, the returns may not be as substantial as those provided by other options and the coverage may not be sufficient. Defining Endowment Insurance Policies Like any other insurance policy, endowments require regular premium payments....
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One of the most frequently asked questions by insurance clients is when they should claim on their endowments policies. Often, this question is asked with hopes of getting reassurance from insurers that they will indeed get their benefits once their policies reach maturity or, in case of death, their benefits will go to their rightful beneficiaries. Endowment policies are essentially life policy contracts designed to pay out a lump sum either on death or on maturity at the end of the policy term. A good example of these are child education policies and other similar savings related policies. Ever wondered what really happens when your life insurance policy matures? We dive into the details...
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Why Consider an Endowment Plan? If you are a family person, you would want your family to be safe. Hence you go for life insurances so that you will be able to protect your family even in your absence. But, before investing in a basic insurance plan, you should definitely consider an endowment plan. But you cannot do it if you don't have any idea of what an endowment insurance is. It is a way to protect yourself from financial burdens and avail yourself of some amount of money for your benefit. In other words, the endowment plan provides a sum assured when the plan matures. All one has to do is keep paying the premiums on time, and you will get some interest over it. Before you know it, you...
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An endowment life insurance plan is a policy that is a mixture of insurance coverage and savings plan. Investing in this is eligible for tax benefit under section 80C of the Income Tax Act. Though these plans look attractive by providing multiple solutions, they should be avoided since they fail to provide an adequate life cover and usually fail as a good investment product. If one is already invested in this plan and now wants to get out of it, they can surrender the policy. It is never too late to quit a bad investment. It is likely that a huge chunk of the invested amount might be deducted as a penalty, but it may still be wise to surrender it. There's a small implication on how...
Continue reading...
