What Are Endowment Plans?
Now endowment plans are a form of insurance as well as savings. They offer you an insurance shield for your life and you get to save your money as you are saved for a long time. Such type of policy is appropriate for any person who wants to plan for the future with his/her resource and provide for future needs – retirement, children’s education, and home.
Benefits of Endowment Plans
Endowment plans come with several advantages:
1. Savings for Future Goals: It is possible to build a sufficient amount that will make it possible to meet large scale expenses such as college fees for your child or acquiring a house.
2. Life Insurance Coverage: Apart from savings, you get life assurance protection, so your dependents do not suffer in case of tragedy.
3. Fixed Returns: These plans provide you the claim reward back guarantee thereby helping you plan your finance better.
4. Tax Benefits: On an endowment policy, costs incurred by the policyholder on premiums shall be tax-exempted depending on provisions in the Income Tax Act.
Who Can Buy Endowment Plans?
Thus, any policy that is up for an endowment plan must meet the following requirements; the policy holder or saver must be at least eighteen years of age and the individual must be income earning. These plans are most appropriate for prime working youth looking forward to providing for their future needs bearing in mind their life insurance.
Required Documents
When applying for an endowment plan, you will need to provide several documents:
• Identity Proof: Aadhar card, PAN card, voter identity card, driving license or passport.
• Address Proof: Any of the above identity documents can also be used to provide proof of residence.
• Income Proof: Pay stubs for the last 90 days and a bank statement for the last 180 days.
• Other Documents: A birth certificate and a passport photo not older than six months.
Ways Strong to Buy Endowment Plans
To purchase an endowment plan, follow these simple steps:
1. Visit a Life Insurance Company: Head to the physical office or find a local branch of a life insurance company or browse its Web site.
2. Review Policy Options: Approach the policy as a sale and make sure one read and understand them to the letter.
3. Submit Your Information: Once you have found the job offering you want to apply for then use the provided application form to fill in your personal data and provide the required documents.
4. Choose Your Premium: Be specific about how much of a premium you’re willing to pay, and offer that data.
5. Complete the Process: Apply for the policy and wait for response from the insurance company of your choice.