Endowment Insurance Policy Meaning In Marathi
Endowment insurance policy is a type of life insurance policy that guarantees a lump sum of money upon maturity. In other words, it is a life insurance plan that is designed to provide financial protection to the policyholder and their family should something happen to them. The policyholder pays a regular premium throughout the policy period and upon maturity, the policyholder receives a lump sum of money. This money can be used for any purpose the policyholder chooses, from paying off debts to investing for the future. In addition to the lump sum of money, endowment insurance policies also provide a death benefit to the policyholder’s family in the event of their death.
Benefits of Endowment Insurance Policy
Endowment insurance policies provide many benefits to the policyholder. Firstly, they provide financial protection to the policyholder and their family in the event of their death. This means that the policyholder’s family will receive a lump sum of money when the policyholder dies, which can be used to cover any financial costs they may incur. Secondly, they provide financial security to the policyholder and their family in the event of the policyholder becoming disabled or ill. If the policyholder becomes disabled or ill, the policy will pay out a lump sum of money to the policyholder’s family which can be used to cover any medical costs or other financial costs they may incur. Finally, endowment insurance policies also provide a lump sum of money to the policyholder upon maturity, which can be used for any purpose the policyholder chooses. This money can be used for anything from paying off debts to investing for the future.
Types of Endowment Insurance Policy
There are two main types of endowment insurance policies available. The first is a traditional endowment policy, which pays out the lump sum of money upon maturity and provides a death benefit to the policyholder’s family in the event of their death. The second type is a unit-linked endowment policy, which is a combination of a regular savings plan and a life insurance policy. Unit-linked endowment policies allow the policyholder to invest their premiums in a range of investment options, such as stocks, bonds, and mutual funds. The policyholder can choose which investments they want to invest in, and the returns will be determined by the performance of the investments. Upon maturity, the policyholder will receive a lump sum of money, which can be used for any purpose the policyholder chooses.
Premiums for Endowment Insurance Policy
The premiums for endowment insurance policies vary depending on the type of policy and the insurance company offering it. Generally, the premiums for traditional endowment policies are higher than the premiums for unit-linked endowment policies. The premiums for traditional endowment policies can range from a few hundred dollars to several thousand dollars per year, depending on the policyholder’s age and health. The premiums for unit-linked endowment policies are typically lower than the premiums for traditional endowment policies, as the policyholder is investing their premiums in a range of investments. The returns on the investments can be either positive or negative, and the policyholder is responsible for any losses they incur.
Tax Benefits of Endowment Insurance Policy
Endowment insurance policies are eligible for tax benefits in some countries. In India, for example, the premiums paid for endowment insurance policies are eligible for tax deductions under Section 80C of the Income Tax Act. The death benefit received by the policyholder’s family is also exempt from tax. In addition, the policyholder can also avail of the Maturity Benefit Tax Exemption, which allows them to exempt up to ₹1 lakh of the maturity benefit from tax. This makes endowment insurance policies a tax-efficient way to provide financial protection to the policyholder and their family.
Eligibility for Endowment Insurance Policy
The eligibility criteria for endowment insurance policies vary from one insurance company to another. Generally, the policyholder must be between the ages of 18 and 65 to be eligible for a traditional endowment policy. For unit-linked endowment policies, the policyholder must be between the ages of 18 and 55. The policyholder must also meet the insurance company’s minimum income requirements and submit proof of their income. The policyholder must also be in good health and must not have any pre-existing medical conditions that could affect their ability to pay their premiums.
Conclusion
Endowment insurance policies are a great way for the policyholder to provide financial protection to their family in the event of their death or illness. They also provide a lump sum of money upon maturity, which can be used for any purpose the policyholder chooses. The premiums for endowment insurance policies vary depending on the type of policy and the insurance company offering it, and the policyholder may be eligible for tax benefits in some countries. The eligibility criteria for endowment insurance policies vary from one insurance company to another, and the policyholder must meet the insurance company’s requirements to be eligible for the policy.