Is Endowment Plan a Good Investment?

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Endowment plans are a good investment tool for everyone. Endowment plans are long-term insurance policies that will help you in many ways. One of the major advantages of an endowment plan is that you will be able to invest the money in a more disciplined way. Endowment plans will have a higher premium rate, but their outcome will also be high. 

An endowment plan has a high-interest rate compared to other policies. Thus it will provide higher benefits to the policyholder. It is a life insurance policy that will provide a lump sum of money after the maturity or death of the policyholder. GREAT Wealth Multiplier II is the best choice if you want to take an endowment policy. It is one of the best policies provided by the Great Eastern Insurance agency in Singapore. 

About Endowment Plan

An endowment plan is a good method to invest your money. The investment will be secured, and you can use it in the future. You need to invest money every month in an endowment policy. The invested money can be taken for your child’s education or some other needs. The endowment plan will give you a payout after maturity or in case of any emergencies. The emergencies include accidents, health problems, and disabilities. The time limit for endowment plans is usually high. It can vary from 10 years to 35 years or more.

Requirement of investing in an endowment plan

Everyone needs money for different uses. Even child education requires a lot of money and higher education requires even more. So you should take an endowment policy to maintain your family’s financial security. All the people who regularly have an income and need a lump sum of money can buy an endowment plan.

Pros and Cons of investing in an endowment plan

Benefits of investing in an endowment policy

Endowment policy has a lot of advantages, some of which are mentioned below.

  • Provides dual benefit

An endowment plan provides the dual benefit of long-term investment and insurance. 

  • The endowment plan will give surrender, loan, and paid-up values.
  • Secured and disciplined way of investing

You can invest your money in a disciplined way. Endowment plans are risk-free, and you will get guaranteed benefits after maturity.

  • Interest benefits

Most of all, insurance agencies will add interest to the total premium you paid. The additional interests will be given to you at the time of payout. The bonus amount differs with the endowment plan you chose and the agencies.

  • Tax benefits

Endowment policies will provide tax benefits. The payable premiums are eligible for tax-exemptions. Thus, you can increase your savings.

  • Loan and other payout benefits

You can take a loan against the endowment policy based on your needs. An endowment loan is called a mortgage. You can pay the investment without paying the loan amount. The money from your total investment will be used to close the loan. You will be able to withdraw the money based on your needs.

Disadvantages of an endowment policy

Even though an endowment policy is a good investment, it has some disadvantages. 

The main disadvantages of an endowment plan include

  • An endowment plan will provide security only for a specific period. The endowment policy does not provide any lifetime security. After you withdraw the invested money after maturity, it will not provide you with any service.
  • The premium for an endowment policy is higher than other policies like whole life insurance and term insurance. To get a higher payout, you will have to pay a higher premium.
  • The surrender value provided by the endowment plan will be lower than the premium paid.

The Top Endowment Plan in Singapore

GREAT Wealth Multiplier II is a regular premium endowment plan Great Eastern Insurance agency made. Great Eastern is one of the top life insurance agencies in Singapore. This plan provides multiple benefits to the individual. GREAT Wealth Multiplier II endowment plan will increase the total payout you receive. 

Benefits of GREAT Wealth Multiplier II | Endowment plan

  • GREAT Wealth Multiplier endowment plan will multiply your total savings by 7X or more. You will receive more money during the payout than you invested.
  • This endowment plan will benefit the beneficiaries if the policyholder passes away. It also provides extra payout for total or permanent disability and terminal illness.
  • The policy provides a 100% capital guarantee and the choice to withdraw your money. You can withdraw your money based on your needs.

Conclusion

An endowment plan is a good investment in maintaining your financial requirements in the future. You will get a lump sum of money after the maturity period, and it will use in many ways. This article will help you know whether endowment plans are a good investment. Many insurance agencies provide endowment plans. GREAT Wealth Multiplier endowment plan is a good investment plan provided by Great Eastern.  

Pooja sharma

Pooja is a digital nomad and founder of HotMail Log. She travels the world while freelancing & blogging. She has over 5 years of experience in the field with multiple awards. She enjoys pie, as should all right-thinking people.

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