Endowment Plans
What are endowment plans?
An endowment plan is a type of life insurance that gives you coverage for your life and also helps your money grow. It guarantees a set return when you buy the policy. You can use it to save up for different things like buying a house, paying for your child's education or wedding, starting a new business, and more. It is suitable for investors who do not wish to take high risks of equity markets.
Why should you consider an endowment plan?
Guaranteed Returns: Endowment plans offer assured returns on your investment, making it one of the most lucrative proposition for those investors who want low risk options. Endowment plans are very popular as it offers guaranteed returns.
Life Cover: All endowment plans come with a life cover, making them an important inclusion in portfolios of investors who are planning for long term goals and would like to ensure goals are met even after death.
Tax Benefits: Endowment plans offer tax advantages, with premiums qualifying for tax deduction under Section 80C of the Income Tax Act, and the maturity proceeds being tax-free under Section 10(10D), enabling tax savings.
Compounded Returns: Endowment plans reinvest your returns every year, making them free of re-investment risks.
Low-Risk Investment: Endowment plans offer a low-risk investment option, backed by stringent regulatory oversight, making them a safe investment avenue comparable to fixed deposits but with potentially higher returns, ensuring financial stability with minimal risk exposure.
Who should consider investing in endowment plans?
Endowment plans are suitable for investors of all sizes. It is most suitable for risk averse investor who is considering investing in deposits or similar products. Endowments provide guaranteed returns along with risk cover, which makes them very lucrative. Endowments are used for planning long term goals like child's education or retirement. Endowments are also used for passing wealth from one generation to another in an efficient manner. It can be used by grandparents to pass on or accumulate wealth to grandchildren.
How to invest?
Choosing a right endowment can be tricky, and should be left to the right professionals. At Goalstox, we can help you connect with the right professionals who can then guide you in choosing the right plan.