Endowment Plan is provided by some insurance companies for a specific period. One of the renowned insurance covers, If the insured survives the term of the insurance he or she receives the sum assured at the end of the policy term. There are two common policies of this type-endowment plan with profit and unit linked endowment plan with profit.
If the insured dies during the term of the policy, the nominee will receive the sum assured with the bonus or other participating profit and guaranteed additions. The nominee gets bonus or profit only for the years that the insured survives. On the other hand, if the policy is unit linked then the value of the investment or the sum assured, the higher one is paid to the nominee.
The sum assured plus other profits and additions are paid to the insured if he or she survives the whole term of the policy.
Is the premium for endowment plan higher than other term plans? Yes, but some companies offer an option to the customers to choose the premium paying term. The premium is higher than a regular endowment plan if the customer takes plans with GA.
We suggest purchasing that endowment insurance plan if it provides both insurance cover and savings. Many insurance customers opt for endowment plan that will mature during the retirement period to complement the pension income.
The maturity income is then properly utilized to meet other needs. However, there are other options for you to boost your income during the retirement period. If you think judiciously and want to invest regularly you can opt for other savings or investment avenues which offer you higher returns.
We at Mantra4money can guide you which insurance cover is the profitable one for you, which companies offer you higher returns and also suggest other investment avenues as an alternative. Get here the endowment insurance covers of major players of the market and compare the returns and benefits.
Tell me the ABC of life insurance.
Life Insurance is a contract between the insured one (policy holder) and the insurer (the company). It protects your family against any risk in future. As the insured one gives premium to the company planning a policy, the company in return gives the assured sum to the policy holder on the maturity. If the policy holder dies before the maturity period, the beneficiary gets the assured sum.
I am only breadwinner in my family. Do I need life insurance?
If you have family, you must need a life insurance policy. As you are the principal earning member in the family, a life insurance would save your family in case of your premature death. Besides, your life insurance policy is a long term investment which would give you a high returns in your retirement or at the time of your child’s future needs.
Can a single policy cover more than one and have more than one nominee?
Yes, a single policy can cover than one. It can have more than one beneficiary or nominee.
I am not a wage-earner. Do I need a life insurance?
If you do not have dependents, you do not need a life insurance policy. Yet if you have a good earning and assets, you can plan a life insurance policy to get tax benefits. Moreover, you can make your beneficiary a charity house.
For which purposes do I plan a life insurance policy?
The main purpose is you have to protect your family or friends in case of your death. Besides, you can use your life insurance policy for your estate protection, mortgage protection, to fund a retirement, to protect your business, employment benefits, etc.
How can a life insurance help my family to settle my any kind of liability, like home loan?
A life insurance policy is especially for your family. Your sudden demise could fall them intro trouble. Your dependents or family gets the sum assured by the company if you die. Then the assured sum is paid to the bank or financial institutions from where the loan is taken.
Should I purchase a big policy?
The sum assured by the company for your policy should meet your family’s expenses along with your liabilities. So we suggest you to take guide from a professional insurance expert who can calculate your requirements and guide you which one is the most suitable for you.
Which are the life insurance policies available in the Indian market?
The life insurance policies available in the market are
Term life insurance policy
Endowment life insurance policy
Money back life insurance policy
Whole life insurance policy
Unit Linked Insurance Plans
Which life insurance is good for me?
For some it could be money back or for some it could be unit linked plans. It depends on various factors, how many dependents you have, what is your monthly or yearly income, etc. So, take guide from a professional insurance adviser. Yet, we suggest you to go for a term insurance plan, the cheapest form of life insurance. Along with life insurance you can take for riders such as critical illness rider, personal accident rider, etc.
Do I have to pay extra premium if I opt for rider in my insurance plan?
To take critical illness rider in your life insurance plan you do not need to pay additional premium. In case of your critical illness or accident the policy would pay off your medical bills.
Could I change the beneficiary on my life insurance policy?
Yes, you could change the beneficiary at any time you want.
Could I want to name a person as my beneficiary on my life insurance policy who is not my relative?
Yes, you can name other person as beneficiary other than relative. You can name as beneficiary your spouse, children, relative or friend. If your beneficiary is a friend, you will put his name correctly to avoid any confusion. Besides, you can also make beneficiary a charity, or trust.