With expanding opportunities for women across sectors, their participation in the workforce has steadily risen over the last few decades. The modern Indian working woman is independent, empowered and driven. She has her life goals clearly chartered and works relentlessly to achieve them.
However, these life goals cannot be achieved without savings. While a conventional savings bank account is the usual go-to-option, there are better ways to save for the future and insure their lives. Endowment policies are one of the most suitable insurance-cum-investment plans that can help this growing section of working women achieve their goals and procure a safety net to deal with the challenges and contingencies that may arise.
What Goals Can a Woman Fulfil with an Endowment Insurance Plan?
As a working woman, you know the importance of planning ahead. An endowment plan can help you systematically plan for both the short and long-term future. Here’s a list of goals you can achieve with an endowment plan:
Buying your Dream Home
Purchasing your dream home may be one of your most cherished life goals. However, with the growing property prices, it can be difficult to achieve this goal without some extra help. The maturity payout that you receive from an endowment plan can help you get a step closer to achieving this life goal. Since this payout includes the sum assured and additional bonuses (if any), the lump sum amount that you receive may be sizable. You can consider using this amount to make a down payment for a home loan.
Financing your Child’s Higher Education Aspirations
As a mother, you would always want to do whatever you can to help your children fulfil their dreams and aspirations. For instance, you wouldn’t want a dearth of funds to compromise your child’s dream of studying at a good university. This is where endowment plans come in handy. Such plans help create a corpus that can be used to fund your children’s higher education as well as cover other milestones like their wedding expenses.
Building a Retirement Fund
To continue living an independent life after retirement, you must start acting in the present. By reserving a part of your monthly income as a premium contribution for your endowment plan, you can systematically save for your retirement years. The small piecemeal payments that you make during the premium payment tenure and guaranteed returns (excluding ULIPs) on these payments will help build a corpus by the time you retire. Thus, with endowment policies, you can plan for a comfortable and independent retirement well ahead of time.
Creating a Safety Net for your Loved Ones
Whether you are a daughter taking care of your ageing parents or a single mother looking after the well-being of her kids, you would always want the life of your dependents to be safe and secure, even in your absence. This is where endowment insurance comes in handy. Like other life insurance policies, such plans come with a life cover that extends death benefits to your named nominees if anything untoward were to happen to you during the policy term. This amount can be used to ensure that your dependents remain financially stable even in your absence.
Repaying loans on time is important to protect your credit score and avoid additional penalties. If you already have outstanding loans, the lump sum maturity payout from an endowment policy can help cover these payments. Similarly, the burden of these debt repayments wouldn’t fall on your family members in the event of your untimely demise.
Summing It Up
While as a working woman, you may think simply saving for the future is enough, endowment plans prove that you can reap the benefits of savings with a little extra. While an endowment policy can be a suitable tool to help you fulfil both your long and short-term goals, it is also a preferred way to ensure the financial security of those you love. Whether it be providing for your family, buying a dream home or car, or simply traveling the world, the guaranteed returns from an endowment plan (excluding ULIPs) can help you achieve it all.
Endowment plans are one of the cost-effective ways to invest in insurance. There are quite a few types of endowment policies available in the market, you have the complete freedom to pick one that best suits your life goals and budgetary parameters. Irrespective of which plan you select, once you opt for an endowment policy, you essentially take the first step towards checking off goals from your existing bucket list. Take the aid of an investment calculator for further assistance!