Due to their traditional nature, endowment plans seem to be shunned by public nowadays. However, endowment plans still have their charm, especially when you want to combine life cover and safe investments. The below are three objectives where endowment plans fit in very nicely.
For assured protection of your loved ones
Endowment plans are safe investments. You are guaranteed returns upfront. At the time of maturity, you receive the assured maturity amount as well as bonus that the insurer may announce every year. In case of your death, your beneficiary receives the Sum Assured. This way, your family is protected if you meet with an untimely demise. If you survive till the maturity of the policy, you get a lump sum amount which can be reinvested and wealth maximised.
For Goal-based savings
Invest in endowment plans for some specific goals. For instance, if you want to buy a bigger house , lets say 15 years down the line, rather than over-leveraging yourself at the time of purchase, you can set aside some money systematically every year which can aid you financially when you make your purchase. It will lessen your burden when you eventually reach your goal.
For fulfilment of an investment objective over a longer horizon
If you have a long-term goal like children’s marriage or their education or a foreign vacation or buying a bigger house, endowment plans like Edelweiss Tokio Life Wealth Builder are the best investment avenues. With assured returns, you can plan your purchase as you are well aware of the amount that you would get as a lump sum after a certain period. Thus, you can make plans for the future well aware of your financial receipts from a certain avenue.
All the insurance plans cannot meet all of your objectives all the time. Include endowment plans in your life insurance portfolio as it has its own distinct benefits.