Frequently Asked Questions about Endowment Policy

Endowment Insurance policies are not just meant to provide life protection but also to achieve long-term financial goals. These plans help you in wealth creation through regular savings along with an added life cover that can financially secure your family when you are not around. Most of the endowment plans are a traditional bonus based low-risk investment avenues. These plans can also be considered as guaranteed policies as sum assured is paid out either on maturity or on death of a policy holder. However, the bonus component is non-guaranteed. It’s a great choice for risk-averse investors to plan for their future needs. There are also few insurers who offer unit-linked endowment plans that allow policy holders to invest in various funds depending on the risk profile.

Which Website to Look for Best Endowment Policies?

The market is flooded with various types of endowment policies. Choosing the right endowment plan can be a challenging task for investors. With the digital revolution in the insurance industry, buying the right plan is now easy. You can visit the insurance company’s website for the product details and to buy the plan of your choice online. However, referring to each and every company’s website and then comparing the products from various insurers is very time consuming. Now, there are various insurance web aggregators who can provide you with product details, quotes and tool to compare policies from various insurers on a single platform. When it comes to choosing the right endowment policy, you need to consider various factors like your current financial status, life stage, risk appetite, company’s track record, your individual need and cost of endowment plan etc.

Coverfox is one of the best websites to search for and compare endowment policies. With the help of a premium calculator, you can instantly get the quotes of various policies and then compare to zero down on the best suitable plan. This website provides details of all the policies in a simple manner. Also, instant availability of quotes and facility to make payment online makes it convenient to buy the endowment plan of your choice instantly. Coverfox website ensures high security for your data. The best part is their unbiased advice that helps you make an informed choice.

Is Your Policy Among The Best Endowment Policies?

There are various endowment plans that come with amazing features and benefits. A particular plan is best or not depends on individual need. If a policy fits into your requirement within your affordable limits then it can be considered as a right endowment plan for you. Investor needs are different from each other. Some investors may have more focus on return, some may focus on time horizon, and flexibility, additional features and some may just focus on saving regularly risk-free for a longer duration. Each investor’s need is unique. Hence, while purchasing an endowment plan you need to consider various elements, analyse, compare and then choose carefully. Here are few things to keep in mind to select the best endowment policy.

  • Pay attention to premium payment term. Endowment plans are regular savings plans which needs you to have steady income flow to invest.
  • If you are more specific about returns and keen in following market, you would choose to go with unit-linked endowment plans that invests in various equity and debt funds. You will have a flexibility to choose the funds and decide the allocation depending on your risk appetite.
  • You can refer to the company’s previous records on bonus payment. This gives you an idea on how much to expect at the end of maturity.
  • If your need is not just investment but also financial protection against various things like critical illness or any other uncertainties in future, go with endowment plans that offer specific riders.
  • The plan you choose should be suitable for your current life stage. A plan with a minimum entry age of 18 years may not be suitable if you are planning to buy a policy in your child’s name for their future educational needs. It’s important to make a need based choice.
  • You need to also consider the cost of premium while buying endowment plans. A costly plan may sometimes be loaded with various features that may not be necessary for you.
  • There are various types of bonuses declared. Most of the policies pay revisionary bonus wherein the amount is added every year to the policy. These accrued bonus will be paid out on death or on maturity. Some policies also pay terminal bonus which is a discretional additional amount of money paid only at the time of maturity. Consider these elements and choose plans carefully.

Conclusion

To sum it all, an endowment policy is a great choice to make for regular investors to avail the facility of insurance and investment in a combination. Be a smart investor. Consider all the important elements, make use of Coverfox online tools to compare and buy an endowment plan that is best suitable for your individual need.

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