Do you often buy things? If you love to buy things, then you should know about the endowment policy. Here, you will get to know about this term deeply and how it can benefit you.
What is an Endowment Policy?
Well, endowment insurance is a life insurance policy that offers insurance along with savings. In other words, this policy aids the policyholder to save their precious money over a particular time period. And the money is then paid out at the closing stages of the policy term.
Let’s take an example: Image you are 30-35 years old person and want to buy a 20-year insurance policy. However, you are also facing difficulty in order to save money. So, in this case, you can go for an endowment policy.
Plus, this policy comes with life assurance, which means the policy will offer you to pay sum along with accrued bonus in case if the holder of the policy dies during the policy term.
Who Should Go for Endowment Policy?
- The policy is an ideal saving option for professionals, salaried person, businessmen, etc who have a good
- It is also a perfect choice for those who aren’t good at saving, and spend hugely without financial security.
- People who want to fulfill their long term financial aims can opt for this policy as it can benefit them in terms of saving and life cover too.
- Those who are not good to take the risk can go for the endowment policy where they can accomplish returns for sure.
If any of the above cases match with your situation, then you can go for endowment insurance or policy. In addition to it, there are some things you have to consider before you purchase the endowment policy, which are:
- Endowment Plan Traits
The policy offers life coverage, and advantage to accomplish returns from your earned money. However, it is possible over a particular time period so as to get a lump-sum amount at the end of the policy. Also, it offers the complete sum assured to policyholder beneficiary if any mis happening occurs.
- Know Conditions for Buying an Endowment Plan
The plan can be purchased to cover the areas, which include financial stability and protection for the loved ones, to gain one’s financial aims, to save for long-term future investments.
- Endowment Policy Types
- ULIP: ULIP stands for Unit linked endowment policy. This type of policy offers risk cover for the holder of the policy, along with various investment options, which includes mutual or bonds funds, and stocks investments by the insurer.
- Low-cost endowment insurance: This type of policy is generally used for covering any existing mortgages or loans. The policy offers a minimum value, which covers the amount of loan, either on maturity or death.
To know more about endowment insurance, all you have to do is to contact OCBC Personal Banking. Here, you can get the information you need to know about different insurance products.