Our future is unpredictable; therefore, it is wise to save for the future. Saving will keep you prepared for any kind of untoward incident such as diseases or accidents. Savings for the future also helps in the proper education of children. Endowment plans are a great option if you are thinking about saving for your future. They are life insurance policies where you are paid a lump sum amount after a specified term or in the event of the death of the insured. An endowment policy is mostly for ten, fifteen, or even twenty years. These plans are available under different conditions. You can even get one that can offer a large payout in case of urgent critical illnesses. Bharti AXA Life Insurance is a trusted company that provides wise saving and investment schemes including this very policy.
When to Buy an Endowment Policy?
When you buy an endowment policy, you are investing both in life insurance as well as in future savings. It helps in regular saving of funds so that you can get a cumulative amount after the maturity period. You can get the sum assured plus extra benefits according to the terms of the endowment policy.
The right time to invest in this type of plan is in your late 20s or early 30s. The earlier your start your savings plan, the greater will be your maturity amount. Moreover, at an early age, you have lesser responsibilities, so you can invest more in the best savings plan.
How to buy the Best Endowment Plan Online in India?
If you wish to invest in this type of plan, you can visit the website of a trusted institution like Bharti AXA very easily. Go through the several investment and best saving schemes provided by us to see what are your options. As a next step, you can choose the best saving plan and make an online application to buy endowment plans of your choice. It is an easy process where you just have to submit the following documents while buying the plan online:
- Recent passport-sized photographs
- Address proof
- Income proof
- Document showing birth date and year
- A filled-in application form
After you complete all your online procedures, your plan provider will check all the submitted documents and your application form. After verification, you will have to make the payment of your first premium and you will become the owner of an endowment policy.
Is an Endowment Plan a Good Investment?
When you decide to invest your hard-earned money, you need to look for security and the best savings plan that provides you with profitable returns. Endowment plans are a good investment because on maturity, they can fulfill several financial needs such as retirement savings, purchasing a house, children’s education, children’s marriage, and many more. Moreover, investing in it can safeguard the future of your family in case of your untimely demise. In case of emergencies, you can even avail a loan against your endowment policy as well.
Tax advantages
Endowment plans can be undoubtedly called the best savings plan because it offers tax redemptions and exemptions. When you buy endowment plans and invest in saving and investment schemes, you get exemptions from tax payments whenever you pay the premiums. The premium you pay on Endowment plans and the sum that you receive on maturity are exempted from tax payment under Section 80C and Section 10 (10D) of the Indian Income Tax Act, 1961. Bharti AXA Life Insurance offers great tax benefits because it is approved by the IRDAI.
Higher returns on investment
Endowment plans are the best savings plan because their returns are comparatively higher than traditional insurance plans. When you invest in a savings plan, you desire greater returns so that your loved ones can get a secured future even after your demise. This type of policy not only provides protection but is a great option for having huge retirement savings too. The lump sum money that endowment plans provide at the end of the maturity period comes with added benefits such as money-back plans, pension plans, and even cancer insurance.
Low to moderate risk
The best savings plan will not only provide greater returns but will minimize your risks as well. The features of endowment plans is that they offer low to moderate risk. Your savings plan becomes less risky because endowment plans do not indulge in direct investment in equity funds or stock markets like mutual funds. Therefore, they are free from market risks. Bharti AXA endowment plans provide several benefits to make your savings plan less risky. We offer death benefits, annual payment options, and tax benefits.
Coverage Flexibility
Endowment plans are best for you because of the various rider benefits and add-ons that are already included in your normal endowment policy. You can opt for various add-ons such as Flexi revival of a lapsed policy, accidental death benefits, payment on hospitalization, critical illness benefits, and disability benefits. Endowment plans also offer Flexi payment options and Flexi payout options. You can withdraw your sum assured in installments. Your maturity amount can be withdrawn in five equal payouts where each payout will be 22% of your sum assured.
Who Should Buy an Endowment Policy?
Endowment plans are a great investment scheme. They provide security, reduce market risk, and provide lump sum savings at the same time. If you are the only earning member of your family and have a lot of responsibilities to undertake, you should invest in this type of plan as it will help you in many ways financially. Once you invest in it, you can rest assured for the rest of your life. If you have a steady and regular source of income, you should not delay in purchasing it, especially, if you have children to raise which means you have to invest in their higher education for the future. A salaried person, businessman, or even a self-employed person can invest in such a plan as long as they are capable of paying the premiums regularly.
Bharti AXA Life Insurance has a wide variety of endowment plans for you to choose from. If you want to invest in the best plan, do visit Bharti AXA Life insurance today!
Conclusion
There you have it; these were everything that you need to know about endowment policy and how beneficial it is for you and your family. It is advisable that you choose the right plan as soon as possible to enjoy all the benefits it is designed to offer.
When you consider Bharti AXA Life for an endowment plan, you are getting the additional benefit of adding a Rider. Do note that adding a rider is not compulsory when you choose us, however, it is recommended for those investors looking for extra protection. The different riders that you can add come with benefits like :
- You can get a lump sum benefit when you will be in need of surgery and payment of a fixed benefit for every time you get admitted to a hospital
- A chosen additional assured sum to tackle unfortunate events caused due to an accident or sudden death will be provided
- The future premiums will be waived off in case of death, critical illness (for life insured), and critical illness or total permanent disability (for policyholder) without affecting the policy’s benefits
- You can increase the coverage of the life insurance for a nominal premium
To know more about the Bharti AXA Life endowment plan and what the additional riders have to offer, contact us today!
Disclaimer:
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.