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5 points to keep in mind when purchasing an endowment plan

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For those who have a major problem in saving their money for a rainy day or for those who frequently purchase various items that they don’t really need, an endowment plan is a life jacket for these people. An endowment plan is basically a life insurance policy that acts like a saving scheme that pays out a lump sum of money at the time of maturity or upon death. It is basically an investment coupled with an insurance plan. An endowment plan covers the life of the insured individual and also helps the policyholder save regularly over the term of the policy. An endowment plan can also be cashed in prior to the fixed date of the policy and the policyholder will receive an amount that has been decided by the insurance agency. This amount that the policyholder or nominee is eligible for can come as a lifesaver for people who have just started their retired life or to make important payments like children’s fees, purchasing a property, paying for a wedding in the family, etc.

Types of Endowment plans:

There are a number of different endowment plans to choose from. Here are a few mentioned below:

  • Low cost endowment policy
  • Endowment assurance policy
  • Joint life endowment policy
  • Unitized with profit endowment policy
  • Unit-linked endowment policy
  • Full endowment policy
  • Limited payment endowment policy
  • Double endowment policy
  • Non-profit endowment policy

Picking out the right endowment plan takes a lot of research and planning to make sure that you make the right choice. Here are a couple of points that you need to keep in mind when picking out an endowment plan for yourself:

  1. Important features and benefits of an endowment plan: One of the main features of an endowment plan is that this plan helps us save and plan for the future. On maturity of the policy, a lump-sum of money is given to the policyholder or nominee. This lump-sum of money can come in handy for various situations like clearing a debt, buying a new house, purchasing a new vehicle, marriage, etc. Another major benefit of an endowment plan is that money deposited under the endowment plan is exempt from tax deductions under Section 80C and (10D) of the Income Tax Act. You can also avail a loan against the endowment plan.
  2. Right circumstances for procuring an endowment plan: An individual should pick up an endowment plan depending on his/her financial status and financial needs. There are three main areas that you should cover when choosing the right endowment plan for yourself. These three areas are protecting and ensuring financial stability of your loved ones, building savings to reach investment goals, and surpass investment goals. Another point that you should make a priority is that you should pick up an endowment plan when you have a steady flow of income coming in every month. This will ensure that you will not miss out on any premiums that need to be paid.
  3. Needs of an endowment plan: Endowment plans are a great means to save money for your future needs. People who tend to spend a lot and at a frequent rate end up lacking the discipline needed to save their income. Endowment plans help ensure that you follow a very disciplined route that would eventually lead to a large payout from this plan. Anyone who is interested in saving their income and saving more under tax deductions can opt for such a plan.
  4. Here is why you need an endowment plan: Saving for an unforeseen future. No one knows what tomorrow has in store for us. Be prepared, ensure that you leave behind some form of monetary stability for your family and loved ones. There are tax benefits that a policyholder can avail after taking up an endowment plan. Endowment plans are risk free even though the plan may shell out lower returns.
  5. Points to keep in mind when picking up an endowment plan: There are a number of endowment plans that are offered in the market. As this can seem like a blessing, it can even be a curse. Making the right choice between these endowment options can be tiresome and frustrating. But, when you're picking out an endowment plan for yourself or for a third party, ensure that you factor in these points. Make sure that you compare the premiums of different endowment plans before you make a choice. This will help make it easier to choose an endowment plan. Also check the track record of the company issuing the endowment plan. Other factors to keep in mind are customer service, financial stability of the agency, and claim settlement ratio.

Consider opting for a simple and "easy to understand" endowment plan. There are a number of endowment plans offered by reputed companies and at different rates. Compare and chose the most suitable plan that meets your needs and requirements.

5 points to keep in mind when purchasing an endowment plan Reviews

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  • LIC Life Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    The life insurance policy has been taken from the LIFE INSURANCE CORPORATION OF INDIA where it gives the maturity is for long term policy also added on that the premium i pay for this policy which is satisfactory. The policy is very good.
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    , bangalore
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  • HDFC Life Life Insurance
    "GOOD"
    0.5 3.0/5 "Satisfactory"
    I am not satisfied with the service of the HDFC LIFE where i have purchased the life insurance policy with this HDFC LIFE. I have started using it from past few years where the policy is very good. They give the fake promises for this policy....
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    , bangalore
    Reviewed on Dec 15, 2018
  • Bajaj Allianz Life Life Insurance
    "Safe plan for future"
    0.5 5.0/5 "Blown Away!"
    I have life insurance with Bajaj Allianz, I used to pay Rs. 12,000 for one year policy, it has the tenure of 40 years, Its a totally term plan for the value of 1 crore, they give lump sump amount to the nominees, the claim ratio is good and also terminal waiver on premium.
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    , pune
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  • SBI Life Life Insurance
    "Best ULIP Policy"
    0.5 5.0/5 "Blown Away!"
    I have purchased a market based policy 2 years ago. I have chosen SBI LIFE because it was suggested by my friend. I pay the premium amount of Rs. 10000. I make the premium through online. The growth was pretty good and tenure period of the policy is 10 years.
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    , bangalore
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Best policy in LIC"
    0.5 5.0/5 "Blown Away!"
    My money back policy was taken with LIFE INSURANCE OF INDIA. I pay the premium amount of Rs. 5000 in a month. I have selected LIC because of the returns. I make the premium through ECS. Total tenure period of the policy is 25 years. My friend has referred me about this policy
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    , bangalore
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Good LIC policy"
    0.5 5.0/5 "Blown Away!"
    I'm just paying the premium and i have never get the sum assured amount and i will get it after 25 years of tenure period. I'm making the premium through ECS. I pay the premium amount of Rs. 5000 every month. I will get a coverage value of Rs. 1.27 Cr.
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    , bangalore
    Reviewed on Dec 14, 2018
  • Bharti Axa Life Life Insurance
    "Best Policy"
    0.5 5.0/5 "Blown Away!"
    I have taken life insurance from the Bharti Axa life as it has good returns i make the payment through on-line banking annually . This policy covers accidental and critical illness benefits with the tenure period of 15 years . Overall am satisfied with my policy .
    Was this review helpful? 0
    , faridabad
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Useful policy"
    0.5 4.0/5 "Great!"
    In the month of February, i have purchased a money back policy from Life Insurance corporation of India. I pay the premium amount of Rs. 15000. Last time i have paid the payment through cheque and in future i make through online. One of sister who is working as a LIC agent has referred this policy.
    Was this review helpful? 1
    , bangalore
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Useful policy"
    0.5 4.0/5 "Great!"
    I have purchased a term insurance policy 1.5 years back. There is no particular reason for choosing the LIC. I pay the premium amount of Rs. 26000 and i have chosen the annual payment mode. Sum assured amount was Rs. 70 lakhs. Total tenure period of the policy upto 70 years of my age.
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    , bangalore
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Average Policy"
    0.5 3.0/5 "Satisfactory"
    I have a life insurance policy with LIC from last 4 years and it is a long term policy. I pay my premium once in 6 months through direct payment and i am convenient with the payment options. Tenure period for this policy is 18-20 years. The returns and benefits are good in this policy.
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    , ghaziabad
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  • LIC Life Insurance
    "GOOD SERVICE"
    0.5 5.0/5 "Blown Away!"
    I have purchased the life insurance policy with the LIFE INSURANCE CORPORATION OF INDIA where the name of the policy is ENDOWMENT PLAN and i am using it from past 10 years. The maturity period of this policy is till 67 years of my age. This gives the policy coverage of 4 lakhs.
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    , bangalore
    Reviewed on Dec 14, 2018
  • LIC Life Insurance
    "Good Policy with Life Coverage"
    0.5 5.0/5 "Blown Away!"
    I have agent who coordinate with me for my life insurance, they are responding well, the customer support is good, they have different payment options. The policy name called Jeevan labh its for 15 years I get the benefits as lump sum amount with life cover.
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    , bangalore
    Reviewed on Dec 13, 2018
  • LIC Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been using my life insurance with Life insurance corporation of India,the agent had clearly explain me about the policy coverage, plan benefits etc, there premium amount they have charged me was nominal,they charged in quarterly basis,overall service is good.
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    , hyderabad
    Reviewed on Dec 13, 2018
  • HDFC Life Life Insurance
    "Fine policy for emergency purpose"
    0.5 5.0/5 "Blown Away!"
    Along with my personal loan they have provided me a life insurance policy from HDFC LIFE. I have to pay the premium amount of Rs. 6000 in a year. I used to pay the premium through online. Total tenure period of the policy is 4 years. I'm getting a sum assured amount of Rs. 3 lakhs.
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    , gurgaon
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  • SBI Life Life Insurance
    "Best Policy"
    0.5 5.0/5 "Blown Away!"
    I took this Life insurance from Sbi life mainly because of the good returns. The payment am doing through online every year through online payments . The best about the policy is it covers accidental coverage and critical illness There customer service and customer response is also good.
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    , bangalore
    Reviewed on Dec 13, 2018
  • LIC Life Insurance
    "Best Policy"
    0.5 5.0/5 "Blown Away!"
    Based on the benefits and returns i have chosen this life insurance corporation of India . I am satisfied with the amount which am making for the policy . Am making the payment yearly through online . This policy cover accidental benefits . Overall am happy with it.
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    , faridabad
    Reviewed on Dec 13, 2018
  • LIC Life Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    I have purchased a life insurance policy in my wife's name. 5 years back i have bought the Jeevan saral policy with Life Insurance Corporation of India. Since its a better company, i have selected the LIC. I pay the premium amount of Rs. 5400. Its a long term policy. I have selected the annual payment mode.
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    , mumbai
    Reviewed on Dec 13, 2018
  • LIC Life Insurance
    "Best Service"
    0.5 5.0/5 "Blown Away!"
    I am using LIC using thee policies same policies life insurance coverage and two more different policies i am never contact customer Service for everything contact with agent only Responsiveness very good , Promised Interest Rate is less in LIC but trust worthy , Fees & Charges is use to pay by agent only. Hence i can give rating 5 for best service
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    , ahmedabad
    Reviewed on Dec 13, 2018
  • IDBI Federal Life Insurance
    "Very Good"
    0.5 4.5/5 "Excellent!"
    IDBI Life cover policy for my children there is more benefits in this policy i have to pay 30k every year after his age of 16 partially amount will received for his education after few years for marriage and in risk factor also amount will provide once terms will complete total Amount will be received in 3 terms for this policy.
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    , hyderabad
    Reviewed on Dec 13, 2018
  • LIC Life Insurance
    "Very good"
    0.5 4.5/5 "Excellent!"
    I am using Life Insurance policy and need payment in six month once i am happy with LIC insurance policy . Since long time i am using Life cover policy so i am only trust to LIC for Life insurance payment is made in cheque and sometimes in cash which one collected by agent for service i can give rating 4.5 very good service.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Dec 13, 2018
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