5 Benefits of Endowment Insurance Policy

Having a life insurance plan is a great decision that you can ever do for yourself to secure a better future without having to jeopardize your current needs. There is no such thing as ‘too early’ when it comes to purchasing life insurance, especially if you are a young adult. Getting your own life insurance is essential for your future. 

If you are one of those people who are shopaholic, loves to buy expensive stuff even if it is not an essential thing for you, and are unwilling to save your money for the future, an endowment insurance policy is just right for you.

If you are looking for an endowment life insurance policy Malaysia, you are on the right page.

Endowment Life Insurance 

An endowment life insurance policy is one of the most popular types of insurance plans. It is a type of life insurance that allows the policyholder or the insured person to save money in the long term. At the end of the policy period, this money will be paid out to the insured. It is one of the greatest savings solutions and key financial goals because of its long-term protection and guaranteed returns. 

An endowment life insurance policy is a preferred investment platform to achieve specific goals since they provide long-term life insurance. Even after you have passed away, this policy would likewise pay the full amount of money to your beneficiary. With other life insurance policies, they do not ensure the potential sum assured that you want. But with your endowment policy, on the other hand, may be able to assist you.

In fact, an endowment life insurance policy will bring so much more benefits to your life. 

1. Earn Extra Money

An endowment life insurance plan could provide you with additional financial income. An annual bonus will be offered to you in the endowment plan. This amount is calculated with a percentage of the amount guaranteed. This way, you can take full advantage of the yearly bonus that your endowment plan has offered. 

1. Tax Benefits

Tax exemption is available on insurance premiums, maturity payouts, and final payments. This is the only reason investors chose to invest in an endowment plan. An endowment plan can be beneficial from a double taxation scheme. 

1. Add-on Rider Benefits

You can add on a rider plan to your endowment life insurance to enhance your policy’s coverage. Among rider plans that you can choose from are a waiver of premium, accidental death benefits, critical illness coverage, and both total and permanent accidental disability benefits. 

1. Low Risk

Endowment policies are considered to be a safer platform than other forms of investments when it comes to investing as the money is not invested into mutual funds or other platforms. Although the earnings of this plan are lower than any other plan, there is less risk involved in the investment to worry about.

1. Dual Benefits

Endowment plans are a sort of life insurance that can be used for two components. This type of plan combines both life insurance and long-term investing rewards into one package plan. As a result, any life insurance plan that includes saving components, as well as lump-sum insurance benefits, is classified under an endowment plan.

If you want to save for the future, purchasing an endowment life insurance plan is a very beneficial choice for you. If you get endowment insurance now, you will have more than enough money when the plan matures to cover you after you are retired. Sounds promising, isn’t it? What are you waiting for? Purchase it now!