We live in world of uncertainty and we can never judge that what next moment is holding in hand. We try to be under the umbrella of insurance policy in the rider to be safe and secure from various type of complication. Nowadays we have all type of insurance plans such as travel insurance, home insurance, car insurance, gadget insurance, life insurance, and health insurance plans. All these kind of plans make a life of an individual easy and an hour of need, one knows that someone is there to hold his/her back.
Like many other insurance plans, we also have Endowment plans too. Endowment plans are those insurance policies which come with an investment component for the policyholder. There are many other plans like term insurance which allow the policyholder to invest along with security coverage, it can also be replaced with traditional fixed deposit, provident finds and linked ULIP plans as well. New generation endowment plans are quite preferable by the young generation.
Endowment policy offers attractive benefits to the policyholder and the new generation endowment policy even have lower cost and these are more transparent than the old one and offer great choices for underlying investments. These policies are preferred by the individual show have a regular flow of income or earning and who require a lump sum amount after a certain period. Endowment policy offers a maturity amount to the policyholder that is a guaranteed amount. Maturity payment is made at the end of the policy term to the policyholder. Following are the features of new generation endowment policy –
1. Premium: Policyholder has to choose from option like single premium payment, quarter payment, semi-annual payment or annual payment for the plan as per requirement.
2. Profit: It differs from policy to policy. While some endowment policy offers benefit to the customer, others do not.
3. Payout: this is the sum assured that will be payable to the policyholder at the end of the term. It can also be claimed in case of critical illness of the policyholder or in case of death of the same.
4. Bonus: Bonus payment is payment the by the insurance company at the end of the term.
Under the New generation endowment policies, you will not only get higher sum assured but also the high investment return. New Generation endowment policy is quite worthy as it offers various good plans to policyholder-
1. Unit Linked policies: New generation Endowment policy offer Unit linked policy which not only offers risk cover but also offer investment option to the customers.
2. Full Endowment Policies: Under this, the nominees get the death benefit of the policyholder. If the policyholder is, the assured policy sum, bonuses and other benefits will be given to the policy nominee.
3. Simple Endowment Plan: These plans offer a fund that is paid only after a specific time prior.
4. Whole life Endowment plan: One can get a plan for up to 100 years cover. At the end of the policy, the bonus will be added to the policy and it will be paid to the policyholder.
Premium amount that is paid towards the new generation endowment policy is exempted from the income tax under the section 80C. While the maturity amount that is proceeds of the insurance plans are also exempted from the tax under section 10 (10D). New generation Endowment plans offer a guaranteed return to the policyholder and thus one can invest money in it as it eliminates risk on investment. One needs to be quiet judicious while buying a play such as the current age of an individual, income rate. It also offers surrender benefit to the policyholder.
So, if you want to get benefit from your insurance plan, new generation Endowment plan is the best choice. As the premium rate, premium mode and premium terms are flexible, so you can choose one as per your convenience. The sum assured to the policyholder will be in proportion to the premium amount. There are various riders also, from which you can choose your ad on the cover as per requirement.
Naval Goel is the CEO and Founder of PolicyX.com