Investing in Life Insurance Money Back Endowment Plans

Life is full of uncertainties, and life insuranc e has become the need of the hour, to help protect your loved ones from financial burdens in your absence. However, in these days of increasing inflation, it might be hard to set aside separate amounts for life insurance and future savings. This is where endowment plans become useful.

These instruments offer a combination of savings and insurance. Apart from covering your life as the policyholder, these plans also present a lump sum amount at maturity if you survive the policy tenure. Thus, endowment plans provide the means to save for the future.

1. Death benefits: You might feel worried about the future of family members dependent on you, wondering what will happen to them if you suddenly pass away. The life insurance component looks after this requirement. If perchance you depart during the policy period, your nominee receives the death benefits, helping them tide over financial insecurities.
2. Maturity benefits: Savings for meeting future financial needs is vital. Endowment plans cover this aspect as well. You may easily survive the policy period, and in that happy circumstance, you will get the sum assured as maturity benefits, along with bonuses if any. You can use this income to build your retirement corpus.
3. Tax benefits: Like all other insurance products, the death benefit that the beneficiary receives is exempt from tax. Moreover, the amount you receive on the maturity of the policy is also tax-free.
4. Flexibility: You have the option to add riders to your policy, increasing your protection against the possibilities of mishaps. Riders include covers against critical illnesses, disability and accidental death of the insured person.

Endowment plans that provide the advantage of liquidity are considered as money back endowment plans . The policyholder gets a percentage of the sum assured and added bonuses at regular intervals throughout the policy term, instead of all at once at the end of the term. The remaining portion is paid at the maturity of the policy.

Financial ups and downs are a part of life. A guaranteed income at specific intervals can help meet monetary needs that occasionally arise, like paying for education, buying a car, repaying a loan, investment in businesses, or even going on a dream vacation. Money back endowment plans help take care of such expenses.Once you ascertain your financial goals and the amount you can invest, you can search online to compare the best money back endowment plans available today. Select the option that is right for you based on the tenure you want to stay invested, premium amounts, the precise amount to meet your future needs and the number of paybacks offered.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.