Grow your savings with Endowment Policy | PNB MetLife Insurance

Grow your savings with Endowment Policy

PNB MetLife 02-11-2016 11:28:12 AM
Grow your savings with Endowment Policy

Grow your savings with Endowment Policy

What is an Endowment policy?
It is an investment policy that you purchase from a life assurance company, set up as regular savings plans which pay out a lump sum amount at the end of a set period. It also comprises of life assurance which will pay out in the event of your demise during the term.

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How will be an Endowment policy beneficial for your savings?
The savings plan can prove to be beneficial if you want to save up for a certain goal or a life event over the long term, atleast ten years into the future. But the savings plan can present you with a non-guaranteed lump sum at the culmination of your investment term. Thus, one needs to understand that while tax saving plans like these help you in investing, it can also result in the value of your investment going up or down with a possibility of getting back less than invested.

How can you save?
With a policy like this, an individual can make monthly as well as annual payments and can thus keep saving according to their convenience. When you make monthly payments, a part of it is used to buy life assurance. The amount is determined by the individual’s profile considering sex, age and the term of endowment. The rest of your payment is invested either on a with-profits basis or a unit linked basis. The amount you receive at the end of your endowment usually depends on the performance of these investments.

Thus, an Endowment policy is not only a tax saving plan but also a saving policy which can help you meet long term goals.