GO Bima

Endowment Policy

What is an Endowment Plan?

Endowment plan importance can be best perceived as a sort of life coverage plan that permits joined advantages of saving and life inclusion. The arrangement assists the policyholder with saving money consistently over a span of time so the guaranteed can get capital toward the finish of the strategy time frame. Here, assuming that the safeguarded outlasts the arrangement span he/she can get the development sum toward the finish of the approach. In any case, in the event that the protected kicks the bucket during the term of the approach the chosen one gets the sum as death benefit along with the reward. Consequently, with an endowment plan the safeguarded can assist with making an abundance that can be utilized to meet the future monetary objectives of the guaranteed.

Working of Endowment Plan

How Does An Endowment Plan Work?

If the policyholder survives through the maturity period, they get eligible to receive the lump sum payment of the policy.

Endowment plans work like other regular insurance plans offering a steady income to the insured.

Money received at maturity of an endowment policy can be used for a range of purposes like buying a house, education of children, leading a peaceful retired life etc.

Endowment plans offer life insurance cover as well as help the insured to save for the future.

Benefits Of an Endowment Policy

Following are the things to look for while buying an endowment policy:

There are various options that the policyholder can review, like choosing the right endowment plan with regular payments or single payment and so on. Only after verifying the options, one should purchase a plan.

Also, knowing the different kinds of Endowment Policies is also essential if you want to invest in an endowment plan. This is because the insured will come to know about the frequent payment of premium that has to be done for the policy.

Further, it is important to select a plan that allows the insured to buy riders. This is because a large number of insurance companies offer extra rider facilities which can be availed by the insured person.

Many insurers also offer bonuses according to the performance of the company. Most of them distribute a certain amount of proceeds to the insured at the time of maturity if they could make a profit from his/her investments.

Start early or plan early about the investment to help in creating a good financial health over a long period of time. This way, you can have a disciplined way of saving and can get better returns.

Documents required for purchasing an Endowment plan

List the documents required for purchasing an Endowment plan

Photograph of the Policy seeker.
Proof of Age of the Policy seeker.
Address proof of the policy seeker.
Application form filled up accurately.