What is an endowment plan?
Endowment plan is basically a life insurance policy offering more than just protection benefits. It is a mix of both insurance cover as well as Investment Avenue. In general endowment plan is a type of insurance cover that pays up at the time of maturity. However, if the policy holder dies within the tenure of the policy, then the beneficiary will receive the sum assured and other bonuses if applicable.
Features of Endowment plan:
As stated earlier, also acts as an attractive investment avenue. Part of the premium amount you pay is used to provide you the protection cover. Whereas, some part of it is also used to invest. The investment if generates profits is given to policy holder as a bonus.
Not only an endowment plan acts as a life protection plan or investment plan, it offers various other benefits as well. If purchased with riders, the plan offers coverage for disability, critical illness, premium waiver etc. Furthermore, endowment plan also offers tax benefits under section 80 C and 10 (10D) of income tax act.
Things you need to know before buying an endowment plan:
Flexibility: Maturity benefit i.e. sum assured is often received at the end of the policy. However, there may be instances in your life where you will be in need of urgent funds. In such a situation, a policy that offers flexibility will work best. So, always look for a policy that gives you the option to receive regular income.
Claim settlement ratio: This is one of the most important factors to look for before buying an endowment plan. Higher the claim settlement ratio of a company, the better chances for you to receive the promised amount without any hassle. Lower claim settlement ratio indicates that the company has higher claim rejection rate.
Affordability: The plan should fit into your budget along with offering you sufficient cover.
SBI Life Shubh Nivesh Plan offers all the above-mentioned benefits. It is flexible as it offers two plan options and option to option to receive regular income with DMP (Deferred maturity payment). The policy ensures that your family is secure and is affordable than most policies. SBI is a renowned name when it comes to offering financial avenues so you don't have to worry about any inconvenience to your claim settlement procedure.
Research and compare policies online to selectthe one that best suits your needs.