Term insurance is an insurance product which offers life coverage.to the insured. An Endowment plan is an insurance product consisting of both life coverage and investment. It is good to have insurance coverage, which protects your family’s financial loss in your absence.
Endowment Life insurance plan mostly used as a college savings plan. The Endowment Plan promises you, to give risk free, guaranteed return, on a guaranteed date as long as you are fixed to pay monthly, quarterly or yearly payments.
Basically these policies couple Term Life insurance with a savings plan. As a policyholder you choose how much monthly contribution you can make and how long you want your plan to be. You are going to get a guaranteed payout, called Endowment. This endowment you can use for your child’s education, buying a house, world tour expenses etc. If at any unfortunate time, the policy holder dies, then still the child’s education expense will come as a maturity benefit and even anticipated money for college.
Are you looking for a low-risk plan which is coupled with insurance and investment .?
Are you looking for a long-term investment perspective that gives you a lump sum guaranteed return in the end ?
If yes, then, this Endowment plan is best suitable for you.
On the other hand, Term Plan is purely Life insurance. It guarantees the payment of stated death under a specified term. Once the term expires ,the plan needs to be renewed otherwise it would be terminated. Term life insurance has no value other than the guaranteed death benefits as it features no savings in the whole life insurance. You can often purchase Term life plans that last 10,15 or 20 years. Depending on the company, Term life can be converted to a whole life insurance plan. Term life insurance premiums are based on age, life expectancy, health, toxication habits, nature of job etc.
If the policyholder dies during the term, the insurers will pay the policy’s face value to the policyholder’s beneficiaries The cash benefits , which is in most cases not taxable, which can be used by your beneficiaries to settle funeral costs, old consumer debt, Home loan etc. among other things. However if the policy expires before the policy holder’s death , there are no payouts. The premium may change at each renewal of the Term plans depending on your age.
Precisely, there is no one size fits all answer to the Term VS Endowment insurance plan debate. Considering other factors to include here:
Is the rate of return sufficiently attractive ?
Does the Endowment policy provide loans and other provisions ?
Will life insurance play a vital role in tax-sheltering sufficiently ?
Hope this information is useful in buying Term Plan and Endowment insurance plan for protection and Investments for your family. We assure you to come again with more financial info which will definitely help in your daily financial life.
For buying any kind of Term plan, Endowment plan etc., please contact our team PLENTYSURE.(www.plentysure.com). We are happy to help you. Just c lick the Link below and Buy Easily https://agents.ethoslife.com/invite/d902e
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