An endowment plan is a life insurance plan that offers a life cover1 and helps you grow your money. It provides returns that are fixed at the time of the purchase of the policy. It can be used to save for various goals like buying a house, your child’s education or marriage, starting a new venture and more.
Below is an understanding of what endowment insurance is and how it can help you.
How does an endowment plan work?
Endowment plans provide you with life cover1 and also help you grow your money. The life cover1 secures your loved ones financially in case of an unfortunate event while the returns from the plan help you achieve your financial goals.
Endowment plans offer you the flexibility to choose the premiums you want to pay towards your plan. You may pay your premiums monthly, half-yearly, yearly or all at once depending on the type of plan you choose. The life cover1 offered by your endowment plan would be 10 times your annual premium.
Endowment plans provide you with a fixed amount called the maturity amount at the end of the tenure of the plan. This maturity amount is fixed at the time of the purchase of the plan itself and is free from any market fluctuations.
In case of an unfortunate event during the tenure of your plan, your loved ones will receive the life cover1 amount offered by your plan and any additional amount as specified in your plan.
Who should consider buying an endowment plan?
An endowment plan can be ideal for creating an alternative source of income. It can offer you a lump sum income in the future. In addition, the plan provides your loved ones with financial protection in case of an unfortunate event. This type of life insurance can be suitable if you want to build savings at low risk while securing your loved ones financially.
What is an endowment fund?
An endowment fund is a type of insurance plan that provides fixed returns along with a life cover1 that protects the financial needs of your loved ones. It can be used to build low-risk savings for your future needs and to secure your family in your absence. Here are some characteristics of an endowment fund:
- Dual benefits of insurance and savings
- Low-risk savings and guaranteed returns^^ at maturity
- Flexibility to select the premium payment method
- Tax benefits under Section 80C* and Section 10(10D)* of the Income Tax Act, 1961
What are the benefits of an endowment policy?
Life cover
An endowment policy offers a life cover1 that can help you secure your loved ones financially in your absence. The plan pays an assured payout to the nominee in case of an unfortunate incident during the policy term.
Wealth Creation
An endowment plan can be used to create wealth. The plan offers guaranteed returns^^ that can help you save wealth for your future needs.
Maturity Benefits
An endowment policy offers a maturity benefit to the policyholder when the tenure ends, ensuring future financial stability.
Flexibility in paying premiums
The premiums for an endowment plan can be paid in flexible instalments, either monthly, semi-annually, annually or all at once.
Tax Benefits
The premium paid towards an endowment plan qualifies for a deduction of up to ₹ 1.5 lakh subject to conditions prescribed under Section 80C* of the Income Tax Act, 1961. Additionally, the death benefits are exempt subject to conditions prescribed under Section 10(10D)*.
ICICI Pru Gold plan
1. Get Regular Income~ with a lump sum at maturity^ with three plan options:
- Immediate income
- Immediate income with booster
- Deferred income
2. Tax* deductions of up to ₹ 46,800 p.a on premiums paid under Section 80C* and the returns received are exempt as per the conditions under Section 10(10D)* of the Income Tax Act, 1961.
3. Get 3% additional Survival benefit$ and Sum assured at maturity on purchasing the policy online.
Salient features of ICICI Pru Gold plan
ICICI Pru Gold is a protection and savings plan. This plan allows you to prepare for your financial goals, such as buying a house, your child’s education and marriage, your retirement and more. The plan offers moderate risk and helps you save tax* subject to conditions under The Income Tax Act, 1961.
Features and benefits of the ICICI Pru Gold plan:
- Choice of 3 customisable plan options~ - immediate income, immediate income with booster and deferred income
- Unique savings wallet$ that helps you pay your premiums, accumulate survival benefits$ and withdraw the balance in the wallet completely or partially as per your choice
- Tax* benefits on premiums paid and returns received
- Life cover1 for the entire policy term to secure your loved ones financially
W/II/2174/2022-23
People like you also read...
