Tips for choosing the right endowment plan for you

Tips for choosing the right endowment plan for you

The world has had to accept and get accustomed to the new normal in the midst of the pandemic. The pandemic has not only changed the way we live, livelihoods of some people were also direly impacted. It has reminded us of the significance of adequate protection for ourselves and our loved ones. Protecting ourselves not only medically but also against financial uncertainties has become important.

If you are wondering how you can protect both life and wealth simultaneously, then we have the right thing for you - endowment plans. An endowment plan provides life insurance as well as savings benefits. Read further to know how you can choose the right endowment plan for you.

 Opt for plans offering longer coverage with a shorter payment period.

Various insurers offer a longer period of coverage with a short period of payment in their endowment plans. These plans can help you maximise your coverage as well as continue to help you gain wealth even after your premium payment term. Through this, you will be able to meet your financial goals confidently.  Be aware of guaranteed vs non-guaranteed returns.

Guaranteed returns are cash payments at the end of every policy year. The rate of return is usually fixed and the rates can differ depending on your insurance provider. On the other hand, non-guaranteed returns are extra returns that some endowment plans offer.

These extra returns include bonuses and non-guaranteed cash dividends.

 Opt for plans that offer riders.

You will be able to get the best out of your endowment policy by getting to know the different riders which can help you increase the coverage of your policy. The increased coverage may include protection from life-threatening critical illnesses as well as protection from medical expenses and more.  Estimate the maturity age and the offered benefits.

Before you sign up for any insurance plan, you should always know the type of benefits being offered to you. This will help you narrow your list of options and decide on the best option available that fits all your requirements. You can also refer to your policy’s term to help estimate your age upon maturity. This will help you pre-plan your finances.

These are some of the tips you can keep in mind when choosing the right plan for you.

For further information on endowment plans, you can visit the website of an insurance provider offering endowment policies and get a better idea about the benefits being offered to you.

 You can even visit our Social sites: Facebook:- https://www.facebook.com/PrudentialSingapore/ LinkedIn:- https://www.linkedin.com/company/prudential-assurance-company-singapore/ YouTube:- https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQ Instagram:- https://www.instagram.com/prudentialsingapore/?hl=en

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