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When is the right time to buy an endowment plan?

dateKnowledge Centre Team dateJuly 01, 2021 views112 Views
Benefits of Endowment Plan | Best Endowment Policy | Buy Savings Plan Online

Saving for the future has always remained vital. In the present times, when the expense of living is rising every other day, everyone ought to become self-sustainable. Investing your funds in life insurance plans can assist you in building a financially stable and secured future. To save funds for your future goals and retirement, endowment insurance policies are the most suitable option for this modern investor.

When to Buy an Endowment Plan?

An endowment policy is ideally a life insurance cum savings plan. It assists you in saving your funds regularly over a particular period so that you can receive a cumulative sum on plan maturity if the insured person outlives the policy duration. The insured person receives their sum guaranteed on a set date in the future according to the terms and conditions of the policy.

While an endowment plan presents many advantages at every age, it can provide you with added perks if purchased at an early age. The right time to purchase an endowment plan is either the late 20's or early 30's. You must always buy an endowment plan at an early age because when you are young, there are fewer responsibilities on your shoulders than when you reach your mid 30's or early 40's.

ULIPs for planning your retirement

Apart from this, investing in an endowment plan at an early age can assist you in building a corpus for your coming future and presenting financial security to your family or loved ones. The final payout for an endowment policy's mortality benefit and survival advantage is higher and more unusual than the benefits earned in a classic term plan like a life insurance plan.

Learn how saving at an early age will help you during your retirement?

How to Buy the Best Endowment Plan Online in India?

Endowment plans have the potential to help you with a disciplined way of saving funds for future requirements. In addition to this, endowment plans are considered one of the safest investment plans in the country that many risk-averse people prefer investing in.

Plan to purchase an endowment plan for safeguarding your family. You can easily get in touch with a reputed financial institution and make an online application for purchasing an endowment policy. Listed below is a list of documents that you will require when buying an endowment plan online in India.

  • 2 to 3 recent passport size photograph
  • Filled and signed application form
  • Proof of residence/ Address Proof
  • Copy of birth certificate
  • Income proof

After submitting all these documents and the duly filled application form, the chosen plan provider will go through all the submitted documents. Upon verification and payment of the initial premium, you will be granted an endowment plan.

Is an Endowment Plan a Good Investment?

Every person in the current times requires some guaranteed and risk-free investment options to safeguard their approaching future and fulfil their set long-term goals. According to some financial experts, purchasing an endowment plan has emerged as a good investment option in recent times, given the ongoing challenging situations worldwide.

Apart from this, investing in an endowment plan can prove beneficial in safeguarding the future of your loved ones when you are the only earning member of your family, and the sustenance of your dependents can become difficult after your untimely demise. Below are some important features of an endowment plan:

1. Tax advantages

One of the most significant features that make an endowment plan a good investment option is that you can always get tax exemptions on buying and paying the premiums of an endowment plan.

The premium paid on the endowment plans and its maturity sum and final payouts is exempted under section 10 (10D) and section 80C of the Indian Income Tax Act, 1961.

Know all you need to know about Tax Exemption.

2. Low to moderate risk

The latest trends in endowment make this endowment plan a safer and a great investment option that holds low to moderate risk. The main reason for the moderate risk in endowment plans is because these plans do not directly invest in the stock market or equity funds like mutual funds.

3. Higher returns on investment

An endowment plan presents economic security to the dependents and loved ones of the policyholder in case of the sudden death of the covered person and assists in creating a better corpus for future needs. Whether it is the mortality benefit or survival benefit, the returns on investment in an endowment plan are considerably higher than the traditional life insurance plan.

4. Coverage Flexibility

Apart from receiving the traditional endowment coverage, the insured person can further opt for various add-ons and rider benefits on the normal base plan, like taking a critical illness cover or accidental death benefits, or total permanent disability cover.

Apart from this, some endowment plans further grant a waiver or concession on premium payment on critical illness or total permanent disability.

Who Should Buy an Endowment Plan?

If you are the sole earning person in your family, then it is a must for you to purchase an endowment plan. Any person who holds a steady income source and who possesses the duty of raising their loved ones and their needs must invest their funds in an endowment policy.

You can purchase an endowment plan if you are either a regular salaried professional or a business person, or a self-employed person. With the assistance of the most suitable endowment policy, you should not venture a lot of funds to earn exceptional returns on your investments.

Canara HSBC Oriental Bank of Commerce has an assorted variety of endowment plans for you to choose from. If you are looking for the best endowment plan, you can consider Invest 4G plan or the Guaranteed Savings Plan to obtain maximum benefits and attain all your financial goals.

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Frequently Asked Questions

How Savings Plans by Canara Help You?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Who should invest in a Savings Plan?

Savings plan require you to invest a pre-decided amount on a regular basis. People with a regular stream of income who require a lump-sum amount after a period should opt for a savings plan. Working professionals, self-employed people and businessmen should consider a savings plan to meet their long-term financial obligations. Savings plans are also ideal for people who are risk-averse and want to accumulate funds through relatively safer mediums. These plans inculcate financial discipline in policyholders which make them crucial for every portfolio.

What is saving plan?

A savings plan is likely to be different for everyone depending on the financial goal, risk profile, returns, and investment horizon. If you are young and want to save for your retirement, ULIPs like Invest 4G or Titanium Plus plan would be the best option. You are likely to create a large corpus by your retirement through market-linked returns. If capital protection is your aim, then traditional insurance plans such as Guaranteed Money Saving Plan should be suitable for you.

How much money should you put in savings each month?

The amount that should be invested in a savings plan each month depends on the income, existing financial obligations and the long-term financial goal. If you have a steady income, you should save at least 20% of your monthly income. It is not necessary to invest your entire money into a savings scheme as investments should be diversified. Ideally, you should aim to have a financial buffer of over 10 times of your annual income.

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Saving plan for retirement

The Invest 4G plan with its multiple investment options and various portfolio management strategies for capital protection is an ideal saving plan for retirement.

Saving plan for future

The Smart Goals plan with its unique features such as modification of the sum assured partial withdrawal and fund switch can help you plan for your long-term financial goals.

Saving plan for girl child

The Future Smart unit-linked plan from Canara HSBC Oriental Bank of Commerce Life Insurance is the ideal savings plan for the girl child.

Where should I invest my money?

You should spread your investments across financial instruments. However, having a suitable savings plan in your portfolio is extremely important. It ensures financial stability and also helps in fulfilling short, medium and long-term monetary goals.

What is a good age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the capital gets adequate time multiply. Even a small amount invested for a long time can give substantial returns due to compounding.

Tax Saving Investment for retired mother

Savings plans are tax-efficient investment instruments. Samridh Bhavishya traditional savings scheme designed to ensure regular income after retirement is the best savings plan for retired mothers.

Should you use a savings plan for retirement planning?

Yes. Retirement planning is one of the most important financial decisions of our lives. Saving plans offer a host of features that may help you build your retirement corpus. Some of the saving plans like Guaranteed Income4Life offer guaranteed returns at policy maturity. Such returns can act as a regular income stream even after your retirement to help you stay financially stable.

Are saving plans beneficial for managing unexpected expenses?

Yes. Best saving plans in India offer partial withdrawal system that can be utilized during your rainy days. Being financially prepared to tackle such odds will help you manage any unforeseen expenses in a smooth manner.

How to save tax by using savings plan?

Saving plans are known for helping us achieve our financial goals. Best saving plans allow you to grow your wealth while providing life cover. Saving and investment plans are also beneficial for tax planning. Premiums of savings cum protection plans come with tax benefit under Section 80C of the Income Tax Act. Moreover, proceeds received upon the death of the policyholder or upon the maturity of the policy are tax free under Section 10 10(D).

What is the right age to start saving money?

When you plan to invest in a financial product, it always pays well to start early. The earlier you start saving and investing, the better. When you start investing early, the appreciation in capital is significant. Even a small amount invested for a long time can give substantial returns due to compounding.

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How a savings plan can help in building your child’s education fund?

Saving plans help in building wealth over time against the investments that you make. Choose the best savings plan to build an education fund for your child. The best saving plan for kids offered by Canara HSBC Oriental Bank of Commerce Life Insurance eases the stress of planning your child's future by providing a lump-sum payout on the investment.

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How Savings Plans by Canara HSBC Oriental Bank of Commerce Life Insurance can help you?

Every person has a unique reason to save and invest. With ULIP savings schemes, the company caters to people seeking wealth creation through capital appreciation. Contrarily, the traditional plans can help you save for important life goals without worrying about the fluctuation in fund value. All major savings plan offers partial withdrawal facility that can help you take care of unplanned contingencies. With savings plans from Canara HSBC Oriental Bank of Commerce Life Insurance, you get adequate flexibility while investing and receiving the savings benefits.

Read More
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