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Understanding the latest trends in endowment benefits

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July 22, 2019

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Saving for the future has always been essential. Today when the cost of living is high, everyone has to be self-sustainable. Investing in insurance products help in creating a financially secure future. To save money for retirement and future goals, endowment plans are a good option for this generation of investors. Let us have a look in detail.

Endowment Policy benefits

Endowment policy gives dual benefits to the investors, life insurance and investment. It gives financial security to the investor's family in case of any unfortunate event. Over a period of time, it helps you in saving regularly, so that you are able to get a lumpsum amount on policy maturity which can be used in the future to achieve some goals or for retirement. Some policies also offer an option of a loan against the policy, during the times of need.

An endowment policy is for whom?

If we listen to the experts, an endowment policy is for the investors who have a regular income in current times and need a lump sum amount at the time of retirement or in the future to fulfil any goal like education or marriage.

If the investor is only interested in life insurance and not investment, then the term plan is the ideal option, as it is cheaper and easier to understand compared to endowment plans.

Circumstances to buy an endowment policy?

Every investor wants to invest some money in the investment product which has low risk and provides good returnsin his/her portfolio. So, endowment plans could be opted by investors to ensure:

  1. Financial security for loved ones at the time of a mishap.

  2. Savings based on individual goals.

  3. Building a corpus for the fulfillment of an objective in the long term.

One thing to keep in mind, only investors who have regular income and are sure that they can pay the premiums regularly in the long term should invest in such policies. If an investor is having an irregular income then investment must be done in short-term products.

Why buy an endowment plan?

Endowment policy helps in creating a habit of investment because the investor has to put in money in the form of premium for a long period. This money can be used in the future in case of any financial need. The family may receive a sum of money in case of death of the insured person, thus safeguarding the financial aspect. Returns are there on the investment. They might be low, but having a lower risk and long term investment can prove to be beneficial. Finally, no one can overlook the taxation benefits it gives.

Keeping the above factors in mind, an investor should definitely opt for an endowment policy. Start saving for your future through investment in endowment plans!

ARN: ED/07/19/14820

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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