Endowment plan meaning (1)

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Endowment Plan meaning
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What is an Endowment Insurance Plan?

• What is the Endowment Plan meaning? Investments
  and insurance are crucial components of future
  planning. You can be making stock market
  investments to build wealth and fund your
  objectives. You must also get life insurance in
  order to achieve these objectives. What if a
  single plan included both of these features?
• Only at the policyholder's death does an
  insurance plan provide a death benefit. An
  endowment plan, on the other hand, is a special
  sort of insurance plan that combines insurance
  and investing. The sum assured plus the bonus
  will be paid to the policyholder as a maturity
  benefit if he or she lives until the conclusion
  of the endowment plan. The endowment plan will
  pay the death benefit to the beneficiaries in the
  event that the policyholder passes away before
  the maturity period. Endowment policies are thus
  profitable instruments having the ability to save
  money while also providing financial security.
  Endowment plans have higher premiums than regular
  insurance plans because they offer greater
  returns in the form of "sum assured."

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What are the benefits of an Endowment Plan?

• Coverage from risks In the event of an
  unforeseen event, endowment plans give the
  nominees a lump payment as a death benefit. As a
  result, your family will be protected from any
  financial problems while you are away.
•  Maturity benefits The policyholder will get the
  guaranteed maturity benefit if they live out the
  policy period. You can fulfill both your
  short-term and long-term financial demands and
  aspirations with lump sum money.
• Tax Benefits Section 80C of the Income Tax Act
  of 1961 allows endowment insurance to qualify for
  tax benefits. Under this clause, premiums paid
  for endowment plans are eligible for tax
  deductions. Through this provision, you can also
  avoid paying taxes when the policy reaches
  maturity.

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