Benefits of Endowment Life Insurance
Image by storyset on FreepikA question often asked by customers is what are the Benefits of Endowment Life Insurance, so in this article of Jeevan Bima Bazaar, all the Benefits of Endowment Life Insurance Plans are being explained in detail. So that you can decide before purchasing any Life Insurance Product whether Endowment Life Insurance Plans are a better option for you?
Benefits of Endowment Life Insurance:
I am sure that after reading the previous article, you must have come to know What is Endowment Life Insurance. So now it is very important for you to understand what are the Benefits of Endowment Life Insurance Plans? So let us understand this in detail:
Benefits of Maturity Payment from Endowment Insurance Plans:
A special feature of Endowment Life Insurance Plans is that when these plans mature, customers get the Maturity Benefit from their policy. This maturity amount of the policy is much more than the total premium deposited by him.
Due to which the customer can use this money for Higher Education of His Children, Marriage of his Daughter, getting Pension, building a house etc.
Death Claim Benefits in Endowment Insurance Plans:
Another important advantage of Endowment Life Insurance Plans is that in these plans, the customer gets the benefit on maturity, but if the customer dies before the maturity of the policy, his family gets the Death Claim Payment.
The benefit of the payment received from the Death Claim to the family is that they can start any employment using this money. Due to which that family starts getting regular income and that family can easily fulfill its Financial Needs.
Benefits of Additional Cover in Endowment Insurance Plans:
In Endowment Insurance Plans, the customer has the option to avail the benefit of different types of Risk Cover by paying some additional premium. However if the customer decides to deposit such additional premium, he does not receive any return on maturity of the policy in exchange for this additional premium. For Life Insurance Plans, such a benefit is known as a “Rider Benefit”.
Its benefits to the customer are that he can increase his Death Claim Amount by paying some additional premium, can avail Health Insurance Benefits, can get Financial Help from the policy in case of permanent disability and so on.
Option to Select Policy Term:
Most Endowment Insurance Plans have the option to choose the Policy Term. Due to which the customer can choose the term of his Endowment Insurance Policy as per his need.
You can understand the benefits of this option in such a way that suppose a customer wants to marry his daughter after 12 years. So the person can buy an Endowment Life Insurance Policy for a period of 12 years. With such a policy, the customer gets maturity payment on completion of 12 years and the customer can easily marry his daughter by using it.
But if the customer dies within 12 years, then the Endowment Life Insurance Policy provides payment of the sum assured to the customer's family. The family can easily marry his daughter using this money.
Freedom to Choose Premium Payment Mode:
There are many options for Paying Premium in Endowment Life Insurance Plans. The customer can choose Monthly, Quarterly, Half-Yearly or Yearly option to pay the premium of his Endowment Life Insurance Policy.
The benefit to the customer of the freedom to choose the Mode of Premium Payment is that his policy premium is deposited on time. Due to which his policy does not lapse and he continues to receive all the benefits of his Life Insurance Policy.
Income Tax Benefits:
Customers also get Income Tax Benefits in their Endowment Life Insurance Plans. According to Section 80 (C) of Income Tax, if a customer pays the premium of a Life Insurance Policy, he can get exemption in Income Tax. Apart from this, under Section 10 (10D) of the Income Tax Act 1961, tax benefits are also available on the Maturity and Death Claim Amount of the Life Insurance Policy.
Loan Facility:
The customer can avail Loan from his Endowment Life Insurance Plans. However, the rules for this may differ in Endowment Life Insurance Plans of all Life Insurance Companies.
The benefit of this facility is that the customer can avail a loan from his Endowment Life Insurance Policy in adverse circumstances and meet his important needs. Later, the amount received as loan can be returned in Small Installments with Interest.
Conclusion:
If you are a customer then Endowment Life Insurance Plans can prove to be a unique and safe option for you. Because these plans provide you the ability to fulfill your various major needs. So, this can prove to be a safe investment vehicle for you.
The main objective of this article was to convey the benefits of this Special Life Insurance Plan to you in simple words. So that you can know this option of Life Insurance accurately as per your needs.
Further information about Endowment Life Insurance Plans is in the next page. So click on the button named “Next Page” given below and get the More Information.
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