How To Save On The Premium Of Endowment Plans
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Investing in a good endowment plan is necessary if you want to secure your future. Let’s discuss what is an endowment plan and how to save on the premium of these plans in this post.
An endowment policy is a life insurance plan which offers life coverage to the insured and helps him/her with regular savings over a definite period of time. This allows the insured to accumulate a lump sum amount at the time of policy maturity if the insured survives through the term of the plan.
In the present scenario, investing in an endowment plan has become essential. Though there are many options available in the market with greater coverage, most of them may not fit into your budget. However, an endowment policy serves the purpose of your savings and insurance at an unbelievable price.
Hence, if you are willing to save in an endowment plan, we have many useful tips on how to save on the endowment plan premium in this post. So, read on to know about them all.
How to Save Money on the Premium of Endowment Plans
If you want to save money on the premium of your endowment plan, the best thing to do is to buy the plan at a young age. There are many other tips as mentioned below, but to start investing at a young age is the most important thing that one should do while planning to invest.
Let’s take a look at the various tips as follows:
- Buy policy early on in life – As discussed above, it is necessary to purchase an endowment plan at a young age because you are likely to be healthy and fit when you are young. And the insurer will charge you less for the endowment plan premium if you are fit because in that case you are less likely to fall sick and die soon. Thus, you should not wait to buy a plan at your old age, rather should get one soon before being affected by illnesses.
- Keep a Healthy Way of Life – If you maintain a healthy lifestyle and avoid bad habits like smoking, drinking alcohol etc. you are most likely to stay away from diseases like diabetes, obesity and so on. And if you qualify as a person with no such issues or diseases you can get an endowment policy at low premium. Thus, maintaining a proper lifestyle is important as it can support a low rate of premium for your policy.
- Procure Endowment Plan Online - Buying an Endowment plan is economical if you buy it online. With life insurance becoming digitized, buying plans online has become more economical as compared to buying them offline. Further, there are many good plans available online at excellent premiums. With online purchase you can compare plans, which help in getting the best deals.
- Buy plans for long durations – Most Endowment plans are generally available for a duration of one year. However, there are plans that are available for a long duration of two or three years. If you buy a plan for long tenure you will pay a low premium as compared to buying short term plans. Moreover, this way you can stay protected and save more money.
- Check riders you need – Riders are additional coverage which are available at an additional cost. They are very helpful when it comes to coverage. Hence, you need to adjust your riders as per requirement. Remove the ones that are of less use and pick the ones that you need more to have a balanced and best endowment plan.
- Evaluate your insurance requirement – You must assess your insurance requirement to make sure how much investment you need to make. You can use a premium calculator to check your premium amount of new endowment plans to choose the best cover within your budget.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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