It doesn’t matter if you have not owned a car yet but living without any life insurance policy is a way risky; especially for your loved ones. The life has become some so hectic, and we don’t even have time to take care of ourselves. No-one knows what will happen next; thus, it is always better to get covered with a life insurance policy so that your family would not suffer from any financial crisis in future.
But, having a regular life insurance plan can provide just a life cover; don’t you think of getting some add-on corpus at the end? Yes, there you are! We are talking about investments. What if you get a chance to avail the triple benefit of savings, investment and insurance in one single package? You can get it with the endowment plans.
Endowment plans are the life insurance policies that allow you to save your hard-earned money, multiply it in the given tenure, and also get an adequate life cover. The habit of saving is nurtured habitually, whereas, on the other hand, your money is invested in market-linked products which gives you some corpus at maturity.
Usually, people advise investing in ULIPs instead of endowment plans due to lower returns. But before going blindly for the ULIPs, you need to understand that why endowment plans offer lower returns. The plan is designed for the people who possess low or medium risk appetite. The gains might be small, but the risk associated with the investments is also minimised.
You may feel that there are a few drawbacks in the endowment plans as it doesn’t allow you to choose the funds for investment or enable switching between the funds. But when you see, on the other hand, it is an advantage for the people who do not have a sound knowledge of the market investments. The market is volatile and may suddenly fall or rise. It needs a lot of patience while getting the anticipated returns, and again there are some risks associated with it. Endowment plans let you be stress-free by allowing not to look into investments.
Besides, the death and maturity benefits under endowment plans are guaranteed. It doesn’t have any correlation with the investments. If by chance the market doesn’t perform well, and you don’t get any expected return from the investment, still you are entitled to get the guaranteed maturity benefit at the end of the tenure.
In short, endowment plans are useful in all the scenarios if you are looking for the guaranteed benefits and a corpus as add-on achieve the desired financial goal. Choose your endowment plan today and secure your future financially.