4 Benefits of Investing in an Endowment Life Insurance Policy in India

In today's time and age, relying on our hard-earned money and savings is not enough. The cost of living as well as inflation rates have seen a rise in the past few years and are expected to keep rising. This has made it difficult for us to manage our current expenses and save for the future. The covid-19 pandemic has made us realise how uncertain and unforeseen our lives are. Unforeseen events can fall upon anyone without any prior warning. All of the above reasons make it necessary for us to have a financial safety net for ourselves and our families.

Investing in an endowment life insurance policy is one of the best ways to financially secure ourselves and our near and dear ones. Before you invest in an pure endowment insurance policy, it is important to have comprehensive knowledge about the same. So, if you are planning to invest in this policy and are looking for a few tips, we are here for you. We have prepared a conclusive guide that talks about everything you should know about endowment life insurance policy in India.

What is an Endowment Life Insurance Policy?

An endowment life insurance policy is a type of life insurance policy that pays a lump sum amount of death benefits in case of an untimely and unfortunate demise of the policyholder (or the breadwinner) or on the maturity of the policy. Usually, the endowment life insurance policy's maturity period is 10 years or 15 years or 20 years, etc.

What are the Benefits of Investing in an Endowment Life Insurance Policy?

Few benefits of investing in an endowment life insurance policy are given below –

1. Financial Security

Investing in an endowment life insurance policy provides you and your family with a financial safety net. This ensures that you and your loved ones can continue with their lives even in the times of the rising cost of inflation rates.

2. Lump-Sum Death Benefits

The unforeseen and untimely demise of the breadwinner can cause financial and emotional drawbacks for his/her family. Moreover, this can make it hard for your family to move forward with their lives and achieve their goals. Investing in an endowment plan will provide a lump sum amount of death benefits to the family in case of policyholder's unfortunate demise. This will ensure that the policyholder's family can continue to live their lives seamlessly without having to face the clutches of financial constraints.

3. Tax Benefits

Another key tip to keep in mind while investing in an endowment life insurance policy is tax deduction benefits. This life insurance policy provides the policyholder with a lump-sum amount of tax deduction benefits of upto Rs. 1.5 lakhs in one financial year under Section 80C of the Income Tax Act, 1961.

4. Additional Rider Options

The policyholder can opt for additional rider options while investing in an endowment life insurance policy. The policyholder can choose from multiple rider options such as Accidental Death Rider Benefits, Critical Illness Rider Benefits, Waiver of Premium Rider Benefits, etc.

Your Way Forward

You now know what is endowment plan in India is and its benefits. This plan also comes with an investment purpose which gives you the provision to generate more wealth. So, if you are planning to invest in an endowment life insurance policy, then now is the right time. Bharti AXA is a top-rated insurance providing company that comes with a great claim settlement ratio of 99.09%. We provide endowment life insurance policies for you to invest in and ensure that you are able to invest in this policy seamlessly.

For more information on endowment life insurance policy, get in touch with us today.