Top 3 Reasons Why You Should Go For An Endowment Plan
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An endowment plan is a policy in which the client pays a recurring premium for a fixed amount of time and upon maturity returns an added amount plus benefits but the interesting thing about this policy is that it also provides the client with insurance in the same policy with no additional cost. This policy truly ticks all the checkboxes for financial security and independence. In this article, we have compiled the top benefits of an endowment plan that attract the attention of the investors.
Top 3 Reasons To Buy An Endowment Plan
The reasons you should buy an endowment plan right now:
1. Two-Fold Benefits
Endowment plans provide two-fold benefits that are long term investments and life insurance cover. This is beneficial as the client can use this opportunity without stress and save and invest for future returns but if any mishap happens the benefits are still returned in the form of life insurance coverage.
2. Regular Payouts
An endowment plan also offers the benefits of additional income. An endowment plan offers an annual bonus that is based on your endowment plan. The annual bonus is the agreed-upon percentage of the promised payout by the policy. The annual bonus amount is usually paid at the time of maturity as maturity benefits but in case of unfortunate contingencies related to the individual, these benefits are passed along with the insurance benefits.
3. Tax Returns
This is a great opportunity for people looking to save up upon income tax. An investment in an endowment plan qualifies for tax deduction up to Rupees 1.5 Lakh under section 80C of the income tax act. Moreover, the returns earned from it are tax exempted under section10(10D) of the Income Tax Act. This will assist in a smooth transaction of money without any hassle in the time of an emergency or when the sum is released upon the maturity of the policy.
Endnotes
The endowment plan is an interesting policy that solves a few problems and checks all the boxes related to financial security and financial independence i.e., savings, investments and insurance and apart from these offers a few more benefits that are specifically unique to the endowment plans. It’s a standout policy that provides dual benefits of investment and insurance under the same policy at no additional cost for the complimentary benefits. It also provides a unique range of benefits that become the additional income benefits at the time of maturity or at the time of insurance compensation.
It offers another interesting saving benefit in the form of tax exemption and returns on deductibles. There is a wide range of endowment plans out there for you, your needs and the amount of premium you want to pay. So, this pretty much ends the lookout for a perfect plan for you that helps achieve financial security and financial independence.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
