Endowment insurance is a kind of insurance that is used covering an individual for a specific time period and the time duration is based on the desire of the person. The insurance policy offers death benefits to the nominee of the insured person. Moreover, this policy only offer money to the nominee in case of the death of the insured person and it comes with profits and without profit plans.
Endowment policy is the best way of saving money in the long run because the insured person will save money for a specific period of time by paying a regular premium amount. But at the end of the insurance period, he/she will receive the lump sum amount that can be used for some major purchases or investment needs. Along with providing death benefits, the insured person will also get returns on the savings on investing money in the long run. With savings, you will also get insurance benefits when you purchase the insurance policy so that your short and long term savings needs will be fulfilled. The purchase of the insurance will also offer tax benefits for you because the taxable income will be reduced. The term of the insurance varies from 15 to 20 years so that your money will get accumulated and you will get higher returns on your investment.
The endowment insurance policy will provide insurance cover along with a lump sum payout at the end of the policy term so that you will enjoy many benefits. You will get long term investment benefits while getting low-risk exposure so that your money will not get wasted. Moreover, you will enjoy long term savings so that your insurance policy will help you get additional bonuses over a period of time. You also have the option of choosing the riders for the policy that you purchase according to your requirements.