Skip Navigation
0 of 0 Displaying
 |   Displaying

No Results

    Benefits Of Endowment Plan | PNB Metlife

    4 Reasons Why You Should Buy an Endowment Policy

    Last Updated On 29-10-2021

    If you spend unnecessarily on things now and then and struggle to build a habit of savings, an endowment savings plan is for you. Endowment plans are a type of insurance cum investment plan that helps you save regularly to achieve your long-term goals. If you haven’t found an insurance plan for yourself, here are some reasons to consider buying an endowment insurance plan:

    Boost Your Savings!

    OTP sent successfully

    Thank you for getting in touch with us. We will contact you shortly.

     
     
     
    1. Endowment plans provide life insurance

      One of the core features of endowment plans is that they provide life insurance protection. So, in the scenario of your unforeseen death, your loved ones receive a guaranteed death benefit (sum assured) to get them through the financial hardship underway in your absence. Endowment insurance plans aims to become the primary source of income in such times to secure your loved ones. This sum assured helps your family members take care of their daily expenses and fulfil short to long-term goals.

      You can also get additional security against critical illnesses or diseases of a life-threatening nature. With this added option, you either get a guaranteed sum or get the payment of premiums waived off once and forever on the diagnosis of a critical illness.
    2. Endowment plans grow your wealth

      Endowment plans help inculcate the habit of regular savings through the payment of one-time or fixed premiums. But more than that, they help you grow your income/ earnings by giving you mid to high-level returns on your premiums invested. There are two types of endowment insurance plans – market-linked and non-linked - so the value of returns generated varies. Market-linked endowment plans give higher returns but carry the risk of loss.

      Non-linked endowment plans, which are more common, give medium returns but at no risk whatsoever. This risk-free nature of endowment plans makes it a very viable purchase for those averse to taking high risks while investing. You receive these returns in the form of a fixed and guaranteed monetary lump sum called a maturity benefit.
    3. Endowment plan gives you additional bonuses and tax benefits

      For staying invested for the long-term, endowment plans give you various bonuses that increase the value of your maturity benefit. These bonuses are terminal bonuses, reversionary bonuses, and loyalty additions/boosters that boost the total value you receive at the end of the endowment savings plan. In terms of tax benefits, you get tax reliefs under two provisions the Income Tax Act, 1961:
      • Under section 80C, you can claim the premiums you paid towards securing the benefits of the endowment savings plan as refunds. The total amount you can claim as a refund is up to ₹1,50,000 in a year.
      • Under section 10 (10D), the death benefit/sum assured you receive under the endowment insurance plan are exempt from tax deductions. Even the maturity benefit you receive at the end of the endowment plan is tax-free.
    4. Endowment plans give you additional benefits.

      There are extra benefits that you receive if you get an endowment savings plan. For instance, you can take a loan against your endowment insurance plan and make partial cash withdrawals in an emergency, provided the mandatory lock-in period of 3 to 5 years, depending on the endowment plan. There is also flexibility in paying premiums one-time or in regular instalments. Moreover, if you stop paying your premiums, the endowment savings plan adjusts the total value of your sum assured/ maturity benefit to the number of premiums paid. This reduced paid-up sum assured is subject to specific conditions and on informing the insurer.

    To sum it up:

    Endowment plans are a must-add to your insurance and investment portfolio. As these provide the dual advantage of life insurance protection and wealth creation at no risk, they are an attractive option for those who don’t want to take on any market risks while investing. The best endowment plan is ideal for battling the hindering effects of inflation and ticking off long-term goals such as higher education, marriage, retirement, travel, and more.

    Visit PNB MetLife to know more about Long Term Savings, Term Insurance & Term Plan.

     

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision. Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    AD-F/2021-22/555

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

    RELATED PRODUCTS

    LONG TERM SAVINGS

    How Much Life Insurance Coverage One Should Have?

    In any case, life insurance coverage is a must. You never know with life and all things considered, your family’s well-being comes in question. So ...

    LONG TERM SAVINGS

    How to Plan for Your Four Financial Stages of Life

    Stage 1: Track Your Spending Habits & Set Saving Goals. This is your entry into adulthood. You  have just started working and possibly re...

    Understand the Income Tax Slab | PNB MetLife

    LONG TERM SAVINGS

    Income Tax Slab Rate & Deductions - FY 2016 -17 & AY 2017-2018

    For tax payers below the age of 60 include women:...

    Increase Savings to Build Emergency Fund |PNB MetLife

    LONG TERM SAVINGS

    All You Need to Know About Investing in Smart Savings Plans

    Why you need a rainy-day fund:

    As mentioned, expenses don’t always arrive with prior notice. Sometimes you just have to be ready for giga...

    Want to know more about how you can protect your family?

    See all our articles

    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

    Site best viewed in following browsers
    Chrome 70+ , IE 11+, Firefox 76+, Safari 11+

    Get Trusted Advice Get Trusted Advice

    Ask khUshi

    Hi! I’m khUshi. How can I help you?