Endowment plan or Term Insurance

Life Insurance plan benefits and reviews for analyzing the best life cover and better returns. Many fears going for Life insurance plans. But the truth is more than 90% of Insurance plans mature and give good returns to the policyholder. Normally, life insurance plan benefits are paid when the policyholder has died. Nominees to provide relevant papers like death certificate, hospital discharge summary, nominee details etc.,  In other words, Life Insurance companies collect money under a particular fund and invest. When the fund performs, distribute profit and whenever any member is lost their families would be compensated.

Life Insurance plans are of two kinds. They are :

  • Returns based insurance plans – Endowment plans
  • Pure Life insurance plans – Term Insurance plans

Endowment plans give life insurance cover as well as guaranteed returns at the end of the term. There are many endowment mix plans which give dual benefits under one plan.

Endowment plan or term insurance?

Endowment plans

The returns may be the same in Endowment plans but the benefits differ in each plan. We have plans to suit all your celebrations like Birthdays, Children’s education, Higher education, the start of work, Marriage, Home loan cover, pension, senior citizen investments etc., Each occasion is a celebration in an Indian house. LIC had planned at least one plan for each occasion.

Term Insurance plans

These plans are pure life cover plans, aimed to be cost-effective and to provide the best cover. Most of the proposers don’t want to mix insurance and investments. For them, this plan gives wonderful options on insurance cover, Critical Illness, Accident Benefit, and premium waiver benefit in case of permanent disablement.

For HNIs, Professionals, Big businessmen, sports personalities and Film Artists this plan may help to a grant extend to cover their life fully. This plan may not give any returns on maturity but till that time proposer would be having the highest insurance cover.

Both plans as given above save tax on all premium paid under section 80C and all payments from Life Insurance companies are also tax-free under section 10 (10 D) of Income Tax Act.,

For details on Life Insurance plans, call Insurance Advisor now

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