Endowment policies as well as Whole Life Insurance policies both are permanent life insurance plans. Whole life insurance plans are a kind of Term Plan. It covers policyholders till the age 100, as long as the premium is paid on time.
Both types of plans give a lump sum amount, at the time of maturity. Endowment plan gives coverage for a shorter period than a Whole life plan. Normally Endowment plans cover 10 to 20 years. A Whole Life Insurance Plan covers till whole life. Whole Life policies have lesser premiums than Endowment plans. If Endowment plan’s term is less, then the premium goes high. Endowment plans are mostly used for college savings plans.
Endowment Plan’s benefits
Higher Return
Endowment plans give protection to the family as well as higher return. These plans give higher returns whether its maturity or survival.
Coverage Flexibility
Extendable benefits like Total disability or Accidental death benefits or Critical benefits provide coverage flexibility for riders. Some companies provide WOP waiver of premium, if the policyholder is totally disabled or permanent illness.
Survival Death Benefits
In case of any unfortunate death of the policyholder, before maturity, the nominee will get the sum assured amount.
Tax Benefits
All the sum assured money or death benefit amounts are Tax free under section 10 (10D). The premium paid amount also saves your Tax under section 80(c).
Whole Life Insurance Plan Benefits
Cash Value
Cash Value is a vital component of a Whole Life Plan, which can be built over a long period. It gives you more benefits. It gives you a borrowing facility on your cash value. There is a certain limit on a loan facility.
Coverage Longer
It has a unique coverage facility that it gives life long. As long as the premium pays perfectly, no problem with the coverage. Only it may hamper if the policyholder has severe illness or health issues.
Both Endowment plan and Whole Life Insurance Plan have their plus points. After taking proper advice from your adviser, you can take the plan.
Hope this info will help you about these two insurance plans. In future we will come up with many informative insurance blogs. For any kind of WHOLE LIFE PLAN, contact our Insurance Expert Team from the USA, PLENTYSURE. And for easy buying a Whole Life Insurance Plan, JUST Click the Link & BUY NOW https://agents.ethoslife.com/invite/d902e.
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