What does an Endowment Plan mean?

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Endowment Plan

When anyone talks about retirement life, you think about leisure and other fun activities. But how is that possible when you don’t save and invest enough in your early income days. You are making the right investment plans that can help you create wealth and lead the best life.

But, to get a secure life, you need perfect planning for investment. There are various options available for investments. One of them is the endowment plan. So, to buy an Endowment Plan, you need to understand it thoroughly.

However, do not run buying an Endowment plan because someone persuaded you. Know everything about it and then choose the one that suits you and purchase it. This article will know everything about various regular premium endowment plans, features, and benefits. So, have a look at them below.

Endowment Plan: Brief Explanation

Before taking a huge step, it is crucial to have a basic knowledge of the endowment plan. To describe it simply, a regular premium endowment plan is one of the best ways to grow your money. So, by the time you retire, you can get a significant amount after it matures.

Features of an Endowment Plan

The endowment plan offered by various insurance companies has some common features. Some of them are listed below.

Keep a certain amount as premium

An Endowment plan requires you to put a certain premium amount until the span of your plan. Contrarily, it is quite dissimilar to shares and deposits, where you have to put in a large bulk amount of money at first.

Choose Your Premium

These premiums are generally of the same amount you choose by yourself when buying the endowment plan. However, you can change the price you are giving with some changes accordingly in your plan. So, you can decrease or increase the price according to your financial situation.

  • The maturity time is Fixed:

There is no market watch in the case of the regular premium endowment plan. That is why you can buy low and sell high when it comes to an endowment plan. Therefore, the endowment plans are generally skimmed for a fixed amount of time. They generally range between 3 to 20 years. Therefore, you need to choose a maturity period with your destination and preferences.

As you know, there is no perfect time to invest in a retirement policy. But, the investment plan can differ from one age to another. If you have just started your job, then you must prefer for 20-30 year plan.

On the contrary, someone at the edge of his\her working period would prefer 3 years or the same valued maturity plan. The purpose is that he\she is in search of a lower-risk endeavor. Subsequently, it is also to be noted that it will not benefit you if you do a shorter endowment plan for 3-5 years.

  • Payouts after Maturity:

When your regular premium endowment plan matures, you will be given your investment return. Although you will not know the sum of money, you will receive it as it depends on the company’s investment policies.

 When you buy an endowment plan, the insurance company will assure you a minimum payout on your guaranteed receive. However, the return can be larger or smaller than the premium you have paid for years.

 It creates a loss of your money if your return is lower than the lump sum money you paid. Moreover, anything higher in return than the given money is non-guaranteed.

Also read: Everything you should know about Bonafide Certificate

  • Insurance Constituents:

The regular premium endowment plans also have an insurance component. It means that you get insurance coverage along with the endowment plans. Thus, it is basically a combination of insurance and investment policies that is safe and secure.

However, to get the best deal out of it, you need to buy your Endowment plans from a reliable insurance company. If you are looking for a trustworthy company for your money, then nothing can beat the popularity of Great Eastern, a member of the OCBC group in Singapore. The OCBC group has been renowned since it was founded in 1992.

The Great Eastern has come up with a great endowment plan named GREAT Wealth Multiplier II. It is a regular premium endowment plan that multiplies your savings up to 7X or more on your total annual premium paid. Hence, there are several other features that you need to know about this regular premium endowment plan.

Crucial Features of GREAT Wealth Multiplier II

These are some important features of the GREAT Wealth Multiplier II endowment plan by Great Eastern.

  • Get all the protection against Death, a total or permanent disability, and terminal illness with no medical underwriting needed.
  • You will get a 100% guarantee of your Capital as early as the end of the 15th policy year, and then you can achieve the benefits of multiplied returns.

In conclusion, the above information can help you understand a regular premium endowment plan. All you need is expert guidance to select the best plans for yourself.

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