How Endowment Plans Can Assist Women In Accomplishing Their Goals?

25-August-2021 |

Today’s woman is empowered, financially independent, and an independent decision-maker. She juggles work and home like a boss and multitasks like a pro. She even saves regularly and contributes to the household. Women’s goals have changed in the past few years – and what revolved mostly around building a family has now evolved to chase goals that fulfil her foremost. Whether that is buying a dream house, having the ultimate big fat Indian wedding, or travelling solo across the world – one thing that is common in any goal is that women need ample finances to tick them off.

While savings can be a good start towards your financial journey, they do not suffice in the long run. What you need are investments that can grow your wealth over time. And an endowment plan can be a guaranteed1 way to do that.  

 

What is an endowment plan? How does it work?

An endowment life insurance plan is a non-linked savings product that offers the dual benefit of life insurance protection and goal-oriented wealth creation. The workings of an endowment insurance plan are simple. First, you pay periodic monetary sums called premiums for a designated number of years in exchange for bigger financial benefits for the entire term of the endowment plan.

Traditional insurance cum investment plans ensure the life assured under the endowment life insurance plan and get guaranteed1 returns. Being a non-linked product, they carry zero risks of loss and are safe from any fluctuations in the debt, equity, and hybrid share markets. Therefore, this type of endowment plan can help goal-oriented and driven women fulfil their goals systematically.   

 

What are the benefits of an endowment life insurance policy?

An endowment plan packs powerful benefits. It provides:

  1. Guaranteed1 returns: An endowment plan gives the life assured a fixed and regular stream of returns every month or year after the premium paying term is over. Guaranteed1 returns ensure a steady flow of financial support and make it easy to manage your funds.

  2. Life insurance protection: An endowment life insurance plan is inbuilt with the element of life insurance. So in case of your unfortunate death, your beneficiaries (chosen family members) receive a guaranteed1 death benefit (sum assured) to provide financial support in the absence of an earning member.

  3. Guaranteed1 maturity benefit: The best feature of an endowment plan is the return on the premium amount paid, it provides through a maturity or survival benefit at the end of the endowment plan. So whatever premiums you invested are returned to you after the expiry of the plan.

  4. Additional benefits: Endowment insurance plans also offer extra benefits such as a surrender benefit (provided there are no lapses in premium payment), riders# for enhanced protection during unforeseen situations (accidents, physical disabilities, critical/ terminal illnesses), and premium payment flexibility.

    For example, with Tata AIA’s endowment life insurance plans, you get the freedom to pay your premiums every month, three months, six months or once a year. Or you have the option to pay the entire premium in one go.

  5. Tax* benefits: An endowment plan also offers lucrative tax* benefits on the premiums paid in a year as refunds up to Rs. 1,50,000 as per Section 80C of the Income Tax Act. Moreover, the maturity benefit you receive and the death benefit paid to your family are also exempt from taxes* as per Section 10 (10D).   

 
 
What goals can women fulfil with an endowment life insurance policy?

There are both long-term and short-term endowment plans, so based on the time frame of your goals, you can choose a long or a short-term endowment plan. However, for better returns, it is ideal to opt for a long-term policy. Here are some goals you can tick off with endowment life insurance:

  1. Building your retirement corpus: You can use the regular income accrued from your endowment plan to build a dependable reserve for your golden years. Moreover, during the premium payment term, you can park your total (or a portion of) savings in the endowment plan instead of leaving it stagnant in a bank account.

  2. Buying your dream home: The maturity payout you receive in an endowment plan is huge due to the magical effect of compounding. Such a lump-sum payout can help you pay towards the down payment of a home loan or home purchase.

  3. Funding your child’s education/ marriage: Suppose you are a mother wanting to secure your children at all times. In that case, an endowment plan can help you build the security they might need to fulfil a big life milestone, such as pursuing their higher education or embarking on the journey of marriage.

  4. Taking care of your family in your absence: With the life insurance protection afforded to you under the endowment insurance plan, you can rest assured knowing your loved ones are taken care of in the tough times following your absence. Moreover, you can also insure your spouse and receive the death benefit in case of his demise with the single premium option under the Tata AIA Life Insurance Endowment Plan.

  5. Paying off any debts or liabilities: The returns received from an endowment life insurance plan can go towards paying off any pending loans or liabilities on time. ensuring the burden of doing so doesn’t fall on your near and dear ones.   

 
 
To sum it up:

A non-linked endowment plan is perfect for risk-averse investors who want to ensure a fixed revenue stream systematically to fulfil their short or long-term goals. Considering they provide dual advantages of life insurance and savings, endowment plans are quite affordable and can easily fit into your budget. However, before you get one, make sure to compare endowment life insurance policies. Doing so will help you find the best deal.


L&C/Advt/2021/Oct/1848

Need help to choose the right plan?

+91

By submitting your details, you are giving your consent to receive SMS/Call by Tata AIA Life Insurance Company Limited or its representative, with reference to this solicited inquiry even though you may be registered on the DND list. L&C/Advt/2019/Jan/075

Disclaimer
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not guaranteed issuance plans, and they will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • * Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility for tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please refer to the riders brochure or contact Tata AIA Life's Insurance Advisor/ branch

  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry