When Is The Right Time To Buy an Endowment Plan?

Written by : Knowledge Centre Team

2021-07-01

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Saving for the future has always remained vital. In the present times, when the expense of living is rising every other day, everyone ought to become self-sustainable. Investing your funds in life insurance plans can assist you in building a financially stable and secured future. To save funds for your future goals and retirement, endowment insurance policies are the most suitable option for this modern investor.

When to Buy an Endowment Plan?

An endowment policy is ideally a life insurance cum savings plan. It assists you in saving your funds regularly over a particular period so that you can receive a cumulative sum on plan maturity if the insured person outlives the policy duration. The insured person receives their sum guaranteed on a set date in the future according to the terms and conditions of the policy.

While an endowment plan presents many advantages at every age, it can provide you with added perks if purchased at an early age. The right time to purchase an endowment plan is either the late 20's or early 30's. You must always buy an endowment plan at an early age because when you are young, there are fewer responsibilities on your shoulders than when you reach your mid 30's or early 40's.

Apart from this, investing in an endowment plan at an early age can assist you in building a corpus for your coming future and presenting financial security to your family or loved ones. The final payout for an endowment policy's mortality benefit and survival advantage is higher and more unusual than the benefits earned in a classic term plan like a life insurance plan.

Learn how saving at an early age will help you during your retirement?

How to Buy the Best Endowment Plan Online in India?

Endowment plans have the potential to help you with a disciplined way of saving funds for future requirements. In addition to this, endowment plans are considered one of the safest investment plans in the country that many risk-averse people prefer investing in.

Plan to purchase an endowment plan for safeguarding your family. You can easily get in touch with a reputed financial institution and make an online application for purchasing an endowment policy. Listed below is a list of documents that you will require when buying an endowment plan online in India.

2 to 3 recent passport size photograph
Filled and signed application form
Proof of residence/ Address Proof
Copy of birth certificate
Income proof

After submitting all these documents and the duly filled application form, the chosen plan provider will go through all the submitted documents. Upon verification and payment of the initial premium, you will be granted an endowment plan.

Is an Endowment Plan a Good Investment?

Every person in the current times requires some guaranteed and risk-free investment options to safeguard their approaching future and fulfil their set long-term goals. According to some financial experts, purchasing an endowment plan has emerged as a good investment option in recent times, given the ongoing challenging situations worldwide.

Apart from this, investing in an endowment plan can prove beneficial in safeguarding the future of your loved ones when you are the only earning member of your family, and the sustenance of your dependents can become difficult after your untimely demise. Below are some important features of an endowment plan:

1. Tax advantages

One of the most significant features that make an endowment plan a good investment option is that you can always get tax exemptions on buying and paying the premiums of an endowment plan.

The premium paid on the endowment plans and its maturity sum and final payouts is exempted under section 10 (10D) and section 80C of the Indian Income Tax Act, 1961.

Know all you need to know about Tax Exemption.

2. Low to moderate risk

The latest trends in endowment make this endowment plan a safer and a great investment option that holds low to moderate risk. The main reason for the moderate risk in endowment plans is because these plans do not directly invest in the stock market or equity funds like mutual funds.

3. Higher returns on investment

An endowment plan presents economic security to the dependents and loved ones of the policyholder in case of the sudden death of the covered person and assists in creating a better corpus for future needs. Whether it is the mortality benefit or survival benefit, the returns on investment in an endowment plan are considerably higher than the traditional life insurance plan.

4. Coverage Flexibility

Apart from receiving the traditional endowment coverage, the insured person can further opt for various add-ons and rider benefits on the normal base plan, like taking a critical illness cover or accidental death benefits, or total permanent disability cover.

Apart from this, some endowment plans further grant a waiver or concession on premium payment on critical illness or total permanent disability.

Who Should Buy an Endowment Plan?

If you are the sole earning person in your family, then it is a must for you to purchase an endowment plan. Any person who holds a steady income source and who possesses the duty of raising their loved ones and their needs must invest their funds in an endowment policy.

You can purchase an endowment plan if you are either a regular salaried professional or a business person, or a self-employed person. With the assistance of the most suitable endowment policy, you should not venture a lot of funds to earn exceptional returns on your investments.

Canara HSBC has an assorted variety of endowment plans for you to choose from. If you are looking for the best endowment plan, you can consider Invest 4G plan or the Guaranteed Savings Plan to obtain maximum benefits and attain all your financial goals.

When Can a Guaranteed Savings Plan Help You?

When Should You Start Saving and What are the Best Savings Plan?

Our Top-Selling Insurance Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.