You want to save money for a specific purpose such as your child’s college education preferably abroad. Among varied options that you have, Traditional Endowment Policies are a good option. Moneymindz India’s Best Free On-call Traditional Endowment Plan Financial Advisory Portal is of the opinion that Traditional Endowment Plans are suitable in planning for specific needs such as higher education of children.
In Traditional Endowment Plans, even if the parents die, the children are given a death benefit with the funds for college education intact. Oncall Financial Advisory, Moneymindz says that Traditional Endowment Policies ensure that the beneficiaries are provided capital so as to help them prepare for further education or such other needs.
What is Traditional Endowment Policy?
A Traditional Endowment Policy is a life insurance contract designed to pay a lump sum after a specific term or upon death. Maturities range from ten to twenty years usually. Moneymindz India’s Best Free Online Traditional Endowment Plan Financial Advisory Portal says that you select how much you want to save each month and when you want the policy to mature. Your monthly contributions decide the payout called “endowment”. Returns are guaranteed and risk free.
Features of Traditional Endowment Plans
- Life coverage and a benefit to earn returns
Traditional Endowment Policies offer you life coverage apart from an opportunity to earn returns. Insurance and investment put together.
- Entire sum assured is offered to the beneficiary of the policy holder
In case something goes wrong or the policyholder is dead, the beneficiary gets the sum assured.
- Save for future investments over a long period
Save sufficient money for investing it again so as to gain further returns from it in the future that will make you rich.
Merits of Traditional Endowment Plans
- Low-risk way to save
You get to select the amount you want to pay and the frequency of time you want to pay the premium as a policyholder.
- No need to worry about ups and downs of the market
The policyholder and his/her beneficiary is given the endowment at the end of the term so there is no need to worry about market ups and downs.
- Disciplined saving
You would need to set aside a pre-determined amount towards the premium payment at a designated time interval. This encourages disciplined savings.
- Loan available
A policyholder can borrow money against an endowment policy whenever required without the requirement of securing the loan against collateral.
- Tax can be saved
Section 80C of Income Tax Act mandates that tax benefit is provided on the annual premium while section 10D mandates that death claim is completely tax-free.
These are just some things you need to know. For more information visit www.moneymindz.com or give a missed call to 022-62116588