The world has evolved significantly since life insurance plans were first introduced. Back then these policies were a means to providing financial security to your loved ones after your demise. Now, as the economy has changed and evolved, even life insurance plans offer ways to grow your wealth and meet the family’s future needs.
Whether you are an Indian resident or a non-resident Indian, a single woman or a young parent, you need an efficient financial plan for the future.
What are endowment plans?
Life insurance policies have significantly changed over the years to accommodate the growing needs of mankind. Endowment plans are one of the most beneficial forms of life insurance policies that help achieve this goal.
Endowment plans are designed with the financial security of the loved ones as well as growing your wealth in mind. Life insurance policies allow you to become a participating member and earn bonuses from the premiums that you pay regularly to avail of the benefits of the plan.
Part of the premium for your endowment plans is utilised by the insurance provider to make effective investments. Whenever you need urgent cash, you can withdraw the bonuses from your endowment plans to tackle these financial hardships.
In the event of your demise, the insurer pays the sum assured to your beneficiaries as a death benefit. If there are pending bonuses, those are also accumulated and paid to the beneficiaries over the death benefit.
Different NRI insurance plans in India
In India, the facilities of purchasing life insurance plans do not just pertain to Indian residents. If you are a non-resident Indian with family or dependents in the country while you study, work or live abroad, you can still purchase life insurance policies.
NRI insurance is available in different forms in India, which are as follows:
- Term insurance plans, which are affordable forms of life insurance. The premiums for these plans are very low, while the sum assured is relatively higher and the policy tenure is flexible from 10 to 100 years.
- Endowment plans, which allow you to earn bonuses in the Indian market, while providing financial security for your loved ones in the event of your demise. You can withdraw these bonuses at your discretion.
- Money-back plans allow you to withdraw a specified sum of money at regular intervals from your premium. In the event of your death, your beneficiaries will receive the death benefit as predetermined, regardless of your premium withdrawals.
- Child insurance plans that aim to fulfil the financial, personal and educational goals of children. As a parent, you can purchase these plans to secure the future needs of your child.
- Pension plans, which aim to provide financial relief in your golden years. Whether you choose to stay abroad or move back to India, these pension plans can not only provide financial support in the form of a lump sum or monthly instalments in your retirement years, but in the event of your demise, the benefits transfer to the spouse or children.
NRI insurance plans are excellent ways to ensure the financial stability of your family in India. They provide you with peace of mind that your loved ones will be well taken care of even when you are no longer around.
Endowment plans under NRI insurance are an option to invest your money and earn profits. For young parents, it is of paramount importance to secure the future of their children with not just a financial backup but also by teaching them how to invest their money. The endowment plan sufficiently addresses that issue and increases the death benefit significantly.
How endowment plans can help young parents save for future requirements?
There are several implications of endowment plans for young parents to save the future of those they love. Here are some of the top benefits of endowment plans for young parents:
- They are available to all under General Insurance or NRI Insurance. You can purchase these plans to secure the future financial needs of your children.
- Endowment plans offer bonuses which help you grow your wealth while securing the future of your loved ones.
- You can use the bonuses for endowment plans to address immediate financial concerns without disrupting the future financial security of your beneficiaries.
- You can avail of both the death benefit and maturity benefit with endowment plans under general or NRI insurance. That means in the event of your demise, your beneficiaries will receive the death benefit in full. However, if you survive the policy tenure, you are entitled to receive the maturity benefit from endowment plans.
Whether you choose to receive the benefits of endowment plans as regular profits or let them build to increase the death and maturity benefits, these bonuses can be very helpful in your financial planning. They add to your financial well-being during your lifespan as well as for your children after your death.
Also Read: Health Insurance vs Life Insurance: Understanding the Key Differences
