6 Best Features of Endowment Plan You Didn't Know

An endowment plan is a type of investment plan wherein investors financially secure themselves and their families. The endowment plan is an ideal investment plan for all those who are looking for a risk-free investment. It provides dual benefits of both risk-free investment and financial security. In addition, an endowment plan comes with various benefits such as guaranteed returns, tax benefits, death benefits, etc.

Moreover, in case of sudden and unforeseen mishaps such as death of the insured, the endowment plan will provide your family with a lump sum amount of money in the form of death benefits. As a result, your loved ones would not have to face financial constraints in your absence. You can be financially secure and achieve your goals with an endowment plan, such as paying off your debt, buying a house, child's education and marriage, etc.

Best Features of Endowment Plan for Investment

Various features come along when you invest in an endowment plan. Let us look at some of the features that comes with an endowment plan :

1. Financial Security

One of the most significant advantages of investing in an endowment plan is that it provides financial security to you and your loved ones. In case of any unfortunate and unforeseen event such as the investor's death, the family will not have to worry about financial constraints as they will receive a lump sum amount as the death benefit. As a result, they can pursue their goals and dreams without any hassle.

2. Tax Benefits

Under section 80C of the Income Tax Act, 1961, the premiums paid by the investor for the endowment plan are eligible for tax benefits upto an aggregate of Rs. 1.5 Lakhs. However, tax laws are subject to change from time to time.

3. Benefit of Loan

Depending on the policy chosen, investing in an endowment plan gives you the benefit of applying for a loan without any hassle. In addition, this plan will let you manage and organise funds in case of an emergency without facing any difficulty.

4. Fixed Returns

Unlike various other investment plans, the endowment plan gives you the benefit of fixed returns. As a result, you do not have to worry about financial security for you and your family.

5. No-Risk Investment

Another benefit of investing in an endowment plan is that an endowment plan comes with no involvement of risk as it is not linked to the market. As long as you pay the premiums on time, you do not have to worry about your policy. As a result, you can enjoy the features of the policy in a hassle-free way.

6. Flexibility of Premiums

The premiums you would have to pay to enjoy the benefit of an endowment plan can be paid in a flexible manner that suits you the best. Depending on the terms of the policy chosen, the premiums can be paid on a monthly, quarterly, half-year or yearly basis.

Conclusion

Investing in an endowment plan has various features and is an ideal investment plan to financially secure you and your family. You can search online for top-rated insurance companies providing endowment plans for you and your family. So, when it comes to hassle-free investing, you can be relaxed and leave everything your insurance company.