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Top 10 Endowment Insurance Plans- Newshubweek

Top 10 Endowment Insurance Plans
Written by Arindam

A peek into what is an endowment insurance policy and the top 10 endowment insurance plans to invest in November 2022.

Insurance is all about protection. But what if your insurance plan was to help you build a corpus of wealth for the future as well? Now we’re talking, right? You can enjoy the dual benefits of insurance and savings in an endowment policy. Let’s learn more about it in this blog.

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What is an Endowment Plan?

In simple words, an endowment plan is designed in such a way that it offers the dual advantage of insurance protection and guaranteed return on investment under one single policy. Ideally, you would have to purchase a separate plan for insurance coverage and another for savings to secure your financial future. However, with an endowment insurance plan, both these benefits get clubbed into one policy for the user.

Besides, endowment plans work great for those who aren’t too big of a risk-taker. This is because an endowment policy is a low-risk life insurance plan designed to facilitate savings among individuals. That too, savings which are free of tax! Couldn’t get any better.

With so many benefits to offer, we decided to present you with a list of the 10 best endowment insurance policies that you can consider investing in the month of November 2022. These plans are detailed with their respective features, benefits, as well as the minimum premium payable towards the policy. Let’s take a look at each of them.

Top 10 Endowment Insurance Plans in India 2022

There are plenty but we focus on the 10 best endowment insurance policies that you can consider putting your hard-earned money in this month or year.

Name of the Plan Eligible Age of Entry (Min/Max) Minimum Premium Payable Annually Claim Settlement Ratio (CSR) of Insurer (2021-22) Key Features Benefits
LIC New Endowment Plan 8-55 years Rs. 2,750 98.74% Monthly, quarterly, half-yearly, and yearly premium payment options; Rs. 1 lakh onward sum assured; maturity benefit; death benefit; Add-on riders Premium rebate on higher sum assured; loan option available; easily affordable
HDFC Life Sanchay Plus 5-60 years Rs. 30,000 98.66% Add-on rider option available; maturity benefit; death benefit; guaranteed lifelong income; up to Rs. 25 lakh maximum sum assured Flexible premium payment mode; guaranteed fixed-term income; premium return at end of payout term; loan facility up to 80% of surrender value
ICICI Pru Savings Suraksha Endowment Plan 0-60 years Rs. 12,000 97.82% Monthly, half-yearly, and annual premium payment terms; sum assured up to 10 times of annual premium; death benefit to nominee; maturity benefit at term end Surrender benefit; loan option; flexible premium payment modes
Bajaj Allianz Life Flexi Income Goal-Enhanced Benefit 0-55 years According to the minimum sum assured 99.02% Policy term from 5-25 years; sum assured from Rs. 1,58,400, monthly, quarterly, six-monthly, and annual premium payment modes available; maturity benefit; death benefit; survival benefit; riders available Joint life coverage available; return on survival benefit; flexible premium payment terms
Max Life Guaranteed Monthly Income Plan 6-60 years Rs. 20,000 99.34% Premium payable only annually; death benefit to beneficiary; surrender value after premium payment for 2 years Benefit of increasing income; surrender benefit; guaranteed income every month for a term of 10 years
Edelweiss Tokio Life Single Pay Endowment 3-70 years Rs. 40,000 98.09% Loan facility available; guaranteed maturity income; minimum sum assured up to Rs. 50,000; 4 add-on rider options One-time premium payment option; guaranteed benefits assured; more life coverage available than the premium payable
Aditya Birla Sun Life Insurance Assured Savings Plan 1 month-65 years Rs. 20,000 98.07% Monthly, quarterly, half-yearly, and yearly premium payment; maximum sum assured up to Rs. 25 lakh; joint life cover; maturity benefit; death benefit; rider options available Loyalty additions that help build corpus every year
Bharti AXA Guaranteed Income Pro Plan 0-60 years Rs. 50,000 99.05% Maturity benefit; guaranteed income 11x the cost of a single premium paid; 105% of all premiums paid at the time of death; assured additions paid in lump sum Tax benefits; death benefit provided
Kotak Classic Endowment Plan 0-60 years Rs. 12,000 98.50% Policy term 15-30 years; monthly, quarterly, half-yearly and annual premium payment options; minimum sum assured depending on premium Annual bonus in addition to maturity and death benefits; option to include add-on riders to enhance coverage
PNB Metlife Endowment Savings Plan Plus 8-60 years Rs. 18,000 98.17% Monthly, half-yearly and annual premium payment modes; minimum sum assured of Rs. 2,20,000 Bonus payment in addition to maturity and death benefits; premium waived off in case of critical illness

Read More: Which is Better Traditional Endowment Plan Or ULIPs – Features and Benefits

5 Benefits of an Endowment Insurance Plan

We looked at the top 10 endowment insurance policies to invest in 2022 above. Now let us quickly look at the advantages of investing in endowment insurance:

  1. You can avail loan facility: Endowment plans allow the policyholder to seek loan up to 80% of the plan’s surrender value.
  2. You are entitled to maturity benefit: Maturity benefit is granted to the policyholder at the end of the policy term. This benefit is assured and is the total of sum assured, bonus (if any) and guaranteed additions above the sum assured.
  3. You are entitled to receive loyalty additions: Some other additions are granted by the insurer under endowment plans in the form of bonus, such as guaranteed additions or regular income payouts.
  4. Your beneficiary is entitled to receive death benefit: In case of an unfortunate demise of the policyholder during the policy term, his/her beneficiary is entitled to receive a monetary death benefit under the plan from the insurer.
  5. You are entitled to tax benefits: The premium payable towards an endowment plan is permissible for deductions from the taxable income under the Income Tax Act, 1961. Deductions up to Rs. 1.5 lakh are allowed on all premiums already paid. Besides, maturity benefit, death benefit and other plan benefits are all free of tax under Section 10(10D) of the ITA.


Summary

Endowment plans are a highly beneficial mode of investment considering that they combine insurance and savings benefits for the policyholder. For more details on the plan and to get the best deals on endowment insurance, visit PayBima online.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

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Which is best – endowment plan or term plan?

Endowment plans offer the dual benefit of investment returns and insurance protection, while term insurance plans are not savings-oriented. 

Are endowment plans a good investment?

Yes, endowment policies are considered good investment options since they are for the long term which means the returns on these plans are considerably higher in the long run. Besides, endowment plans also facilitate disciplined saving practices among individuals. 

What is the rate of return on endowment policy?

The general rate of return on an endowment plan over a 30-year term is around 5.5%. 

How do I choose an endowment plan?

There are a number of factors to consider when choosing an endowment policy:
>The financial requirements of an individual, both in the present as well as in the future
>The current income of the person
>Their capacity to take risks
>Cost of the premium 
Based on these factors, one decides which endowment plan is best to go for.

What is the 120% rule in endowments?

A total of 3 endowment plans work by the 120% rule. This means that the five-year restriction period is subject to extension if the annual contribution of the investor is higher than 120% of their total contribution annually made in either one of the previous two years. 

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Arindam

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