What is a Pure Endowment Policy?
A pure endowment policy is a life insurance policy and is a legal contract between the policyholder and the insurance providing company. This plan provides a lump sum amount to the family on the maturity of the policy or in case of the unforeseen and untimely demise of the policyholder. Usually, the tenure of the policy maturity is 10 years, 15 years or 20 years and goes up to a certain limit. A pure endowment policy also covers the critical illness plan.
What are the Benefits of Investing in a Pure Endowment Policy?
A few of the benefits of investing in a pure endowment policy are given below –
One of the key benefits of investing in a pure endowment policy is that it provides financial security to you and your family. It also ensures that you and your family can easily fight the rising cost of living and inflation rates.
Lump-Sum Death Benefits
In case of the unforeseen and untimely demise of the breadwinner or the policyholder, the pure endowment policy will provide a lump sum amount of death benefits to the family. This will ensure that the policyholder’s family are financially secure and can continue with their lives even if you are not around to help them financially.
A pure endowment policy also provides a lump sum amount of money on the maturity of the policy. In other words, in case you survive the tenure of this policy, the pure endowment policy, you will receive a lump sum amount of sum assured that is tax-free.
Tax Deduction Benefits
The pure endowment policy comes with the benefit of tax deductions. You can claim upto Rs. 1.5 lakhs of tax deduction benefits under Section 80C of the Income Tax Act, 1961.
Cover Critical Illness
We never know when we might get diagnosed with a critical illness, such as cancer, tumour, lung disease, etc. Moreover, the cost of medical treatment has also seen a huge rise in the past few years. Investing in a pure endowment policy covers the critical illness as well. This will ensure that you do not face any financial hassles while getting medical treatment and can fully focus on your recovery as well.
Your Way Forward
You now know what a pure endowment policy is and what are the benefits of investing in this policy. Investing in this policy will ensure that you and your family do not have to come across any financial struggles and can seamlessly work on your goals and dreams.
Bharti AXA is a pioneer insurance providing company and is trusted by people from all across the country. We provide one of the best pure endowment policies to invest in and further ensure that you and your family are secure.
For more information on pure endowment policy and its benefits, get in touch with us today.