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5 Things to Consider to Buy the Right Endowment Plan

Purchasing an endowment insurance policy will provide a life cover and a savings benefit. It is one of the best ways to secure your family while ascertaining a savings fund to accomplish future money goals. Top endowment plans in India provide varied, flexible features that help you modify the solution based on your increasing financial demands. Therefore, choosing the right savings plan is important to achieve your financial goals timely. Here are a few aspects that you need to consider to buy an endowment insurance policy.

Before we get started, let us understand what an endowment insurance policy means.

What Is Endowment Insurance?

Endowment insurance is a life insurance plan that provides a life cover and a savings benefit. The life cover will ascertain financial protection to your loved ones in case of your demise and a guaranteed return at maturity.

5 Things to Consider While Buying an Endowment Plan

Having understood what a savings policy with a life cover means, here are a few things to consider to buy the savings policy.

  • Decide on the guaranteed return required – As there are guaranteed returns in the guaranteed savings plan, you can make a decision reagrding the funds required based on your money goals and the timelines. For example, suppose you want to accumulate a certain fund to start a new business. In that case, you can calculate the required amount considering the inflation rate and decide on the guaranteed returns for the savings plan. Invest in a savings plan that can provide a guaranteed return at an affordable premium rate.
  • Policy tenure – When buying the savings policy, decide to invest in it for a longer-term. The longer the policy term, the higher the returns. Also, when you choose a longer policy term, the premium for the savings policy will be considerably less and more affordable.
  • Premium – Premium for your savings insurance plan is central to any benefit you receive. Therefore, revise your budget based on income and expenses and allocate a higher fund to save regularly. Based on this fund and your financial goals, determine the affordable premium. You can utilise the online premium calculator to determine this value by considering the sum assured and the policy tenure and trying different combinations.
  • Flexible features – Ensure to buy the savings plan that offers customisable features. For example, the Tata AIA insurance with the comprehensive savings benefit will help you choose a flexible payout option, such as a fixed, regular income for a defined income period starting from when the plan matures. You can also choose the payout as a regular income with the critical illness benefit. It will start providing a regular income if you get affected due to a critical illness that you can use to pay for your hospitalisation and medical expenses. There is also a money-back insurance policy that allows you to receive a regular income throughout the policy tenure.
  • Online compatibility – The best way to manage your savings plan in the long term is to ensure online compatibility. When you buy the savings plan online, you can compare the features and choose the most appropriate option. It will help you monitor your policy terms and change the features based on the increasing demands. It is cost-effective and convenient in the long term.


Purchasing an endowment plan is important to secure your family and accomplish financial goals in the long term. However, it will prove beneficial when you choose the right savings policy. Therefore, evaluate your needs, compare different endowment plans online, and fix the premium and policy tenure to decide the best savings plan based on your needs. After deciding on the savings plan, pay the premium through the policy tenure regularly and stay invested in fulfilling all your financial goals timely!

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