What factors must one consider while choosing an endowment policy?

When selecting an endowment policy, consider factors such as your financial goals, risk tolerance, policy duration, premium affordability, and the reputation of the insurance provider.

What is the 20 rule on endowment policies?

The 20 rule in endowment policies generally refers to the common practice of allocating 20% of one's savings or investments towards an endowment plan, aiming for a balanced and diversified financial strategy.

Is it good to invest in an endowment plan?

Investing in an endowment plan can be a good option for individuals seeking a disciplined approach to long-term savings, especially those with a regular income and a future need for a significant sum of money.

Things You Should Know Before Buying an Endowment Plan

Endowment Plans provide the benefit of life insurance and long-term savings in a single financial product. NRIs can easily buy an endowment plan through their NRI or NRE account. However, before investing, it is important to keep certain things in mind to ensure that you make the most out of your endowment plan.

Plans starting from ₹1000/month

Investment Plans

Generate wealth with high returns Earn 1 Cr in maturity with Zero LTCG tax
Double tax savings On premiums (under 80C) and on maturity (under 10(10D))^
Compare & Choose 30+ Plans and 150+ Fund options

In-Built life cover

Top performing plans^˜ with High Returns^**

Invest ₹10K/month & Get ₹1 Crore^# Tax-Free^*

Your Name

Mobile Number

Your personal information is secure with us

By clicking on "View Plans" you agree to our Privacy Policy and Terms of use

Get Updates on WhatsApp

We are rated⁺⁺

15.8 Crore

Registered Consumer

Insurance Partners

7.16 Crore

Policies Sold

Things to Consider Before Buying an Endowment Policy

Whether you are a first-time buyer or looking to enhance your existing financial strategy, these are the things you should know about the endowment plan:

Features of an Endowment Plan

An endowment plan is a life insurance plan designed for Non-Resident Indians (NRIs). It not only provides life coverage but also serves as a disciplined savings tool. The key features of an endowment plan include:

An endowment plan combines life insurance with savings.
By contributing regularly over a specific period, you can secure a lump-sum amount upon policy maturity. This sum can be utilised for diverse financial goals such as funding education, saving for retirement, buying a house, or covering marriage expenses.
In the unfortunate event of the policyholder’s death, the beneficiary receives the full sum assured amount, ensuring financial protection for loved ones.
The endowment plan offers tax benefits under sections 80C and 10D of the Income Tax Act.
It provides the option to avail a loan facility in case of emergencies.

Understanding Endowment Plan Types

Before investing in an endowment plan, one should understand that different endowment plans cater to different financial needs. The types of endowment plans are

With profit endowment: The basic sum assured is combined with non-guaranteed reversionary or terminal bonuses, which are declared by the insurer over time.
Non-profit endowment: A guaranteed maturity is provided along with death benefit without any additional bonuses
Low-cost endowment: Lower premium rates than traditional endowment plans.
Limited premium payment: You are required to pay premiums for a limited short amount of time.
Money back endowment: Periodic payouts are provided during the policy term instead of a lump sum payout when the plan matures.

Assessing Premium Terms and Affordability

Check the frequency of premiums that accompany the plan. Along with the frequency of payment, ensure you evaluate the premium terms and total premium amount to check if they fit your investment budget. Also check the coverage proportion offered by the plan to ensure you get a decent life cover.

When Should You Purchase an Endowment Plan?

You should consider purchasing an endowment plan if

You have a steady income to sustain regular premium payments as endowment plans need a regular source of income to fund them.
It is recommended to invest in endowment plans as soon as you can, as these are long-term investment plans and a longer window of investment can provide you with higher returns.
If you have a family financially dependent on you and might need financial assistance in your absence. You can buy an endowment plan to provide them with life cover.
If you have long-term goals and you prefer low-risk instruments to reach your financial goals.

Why Should You Buy an Endowment Plan?

Investing in an endowment plan is a wise choice for NRIs due to its dual benefits of savings and life cover.
It offers disciplined savings for future financial needs while providing life coverage.
Despite potentially lower returns, the plan boasts low investment-associated risks, making it ideal for risk-averse investors.
The endowment policy allows for tax benefits on returns, making it a preferable option.
This plan not only ensures financial security through death benefits but also provides maturity benefits, making it a secure and attractive investment for NRIs.

Factors to Keep in Mind While Buying an Endowment Policy

Ensure you assess factors such as your long-term investment goals. Align your investment with the goal and then buy a plan best suited to your needs.
Assess your risk appetite; if you are a risk-averse investor, you can invest in an endowment plan.
Compare quotes beforehand. By examining premium rates and company track records, you can make an informed choice.
Understanding bonus amounts and checking customer service, claim settlement ratio, and financial stability are crucial for a well-rounded decision.

What is the Great Eastern Endowment Plan?

The Great Eastern Endowment Plan is a series of endowment plans offered by Great Eastern Life in Singapore/ Malaysia and is tailored to the financial needs of Non-Resident Indians (NRIs). With the increasing costs of education and living, coupled with life's uncertainties, the need for strategic financial planning to secure your family's future and ensure a comfortable retirement is important.

The Great Eastern Endowment Plan offers several endowment plans under a singular umbrella. The following table lists the endowment plans that NRIs can choose to invest in

Plan	Type	Returns
Great SP	Single premium, non-participating	Guaranteed yearly returns along with capital guarantee at maturity.
Great SP USD	Single premium, non-participating	Guaranteed yearly returns
Great wealth multiplier	Regular, or single payment, participating	Sum assured along with non-guaranteed bonus from participating funds
Great flexi goal	Participating	Higher of 105% premiums or the sum assured and bonus.
Great Prime Rewards 3	Participating	Sum assured and bonuses

Conclusion

In order to avail the maximum benefits of the plan, NRIs should consider all these points while buying an Endowment Plan. Define your financial goals and choose a plan that best suits them and will be able to earn you expected returns on time. You can further explore NRI investment plans and choose a plan that best suits your interests.

FAQ's

What factors must one consider while choosing an endowment policy?

When selecting an endowment policy, consider factors such as your financial goals, risk tolerance, policy duration, premium affordability, and the reputation of the insurance provider.
What is the 20 rule on endowment policies?

The 20 rule in endowment policies generally refers to the common practice of allocating 20% of one's savings or investments towards an endowment plan, aiming for a balanced and diversified financial strategy.
Is it good to invest in an endowment plan?

Investing in an endowment plan can be a good option for individuals seeking a disciplined approach to long-term savings, especially those with a regular income and a future need for a significant sum of money.

Invest More Get More!

You Get

₹1 Crores*

You Invest

₹10K/month

You Get

₹80 Lakhs*

You Invest

₹8K/month

You Get

₹50 Lakhs*

You Invest

₹5K/month

Calculators

Show More Calculator

Investment Calculator

One time
Monthly

Amount I wish to invest ₹

Invest for (Years)

Stay invested for (Years)

Expected rate of return (in %) / Year

Sensex has given 10% return from 2010 - 2020

You invest

You get

View plans

Things You Should Know Before Buying an Endowment Plan

Things to Consider Before Buying an Endowment Policy

Features of an Endowment Plan

Understanding Endowment Plan Types

Assessing Premium Terms and Affordability

When Should You Purchase an Endowment Plan?

Why Should You Buy an Endowment Plan?

Factors to Keep in Mind While Buying an Endowment Policy

What is the Great Eastern Endowment Plan?

Conclusion

FAQ's

What factors must one consider while choosing an endowment policy?

What is the 20 rule on endowment policies?

Is it good to invest in an endowment plan?

Investment plans Articles