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3 life situations in which an endowment plan could benefit you

An endowment plan is a hybrid life insurance plan that combines insurance, savings, and investment. This plan helps you save money and receive a lumpsum upon its maturity date. In the case of premature passing, your family will receive the death benefit.<br>How does it work? The premiums that you pay for the policy would be used to buy the plan that provides you coverage as well as help you invest in asset markets. The benefits of such endowments are usually received as a lump sum payout upon its maturity.<br>

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3 life situations in which an endowment plan could benefit you

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  1. 3 life situations in which an endowment plan could benefit you

  2. An endowment plan is a hybrid life insurance plan that combines insurance, savings, and investment. This plan helps you save money and receive a lumpsum upon its maturity date. In the case of premature passing, your family will receive the death benefit. How does it work? The premiums that you pay for the policy would be used to buy the plan that provides you coverage as well as help you invest in asset markets. The benefits of such endowments are usually received as a lump sum payout upon its maturity. There are many who prefer to go for such plans given their fixed nature of premiums and guaranteed returns. Now you may be wondering whether endowment plans would be a good suit for you. To help you with this, let us take a look at 3 situations in which having an endowment plan could benefit you.

  3. Situation 1: To balance out your investment portfolio • For anyone looking to set up their investment portfolio, endowment plans are a great option to begin with. An endowment plan could act as a sound back up if you are looking for a balance in your investment portfolio. If your investments do not go as planned, you will have a safety net in your endowment policy. If your guaranteed returns do not seem to match with your expectations, you can also opt for a participating endowment plan where you could gain potential non-guaranteed returns. This will not affect your guaranteed portion of the returns in any way.

  4. Situation 2: Support life milestones financially You might have plans to buy a new home a few years down the line. Or, you may want to start saving up for your child’s university fees. As we all know, these expenses can take a major toll on your finances. Squirrelling away a bit of money in your savings account might not be the best way to build your nest egg. An endowment plan could be the perfect solution in such cases. Such plans require the policyholder to make fixed payments towards their premiums. These could be either monthly, quarterly, or annual for the entire premium term. Thus, an endowment plan can help you save up for life milestones as you steadily build a corpus of funds through the disciplined payment of your premiums.

  5. Situation 3: Aiming for an early retirement • Who wouldn’t like to kick up their shoes and relax for the rest of their days? • While this sounds great, there may be a lot that one has to work towards to achieve this dream. The first thing you need to take care of is to get financially secure. Endowment plans could really help you make your early retirement planning a success. Choose an endowment plan tenure that will support your retirement plan. You can choose to either get a lump sum or monthly payouts upon the maturity of your insurance plan. This will ensure that you will not have to worry about your finances during retirement. With proper planning, you will then be able to focus on your passions and hobbies in your golden years. • Seek advice from a financial consultant before buying an endowment plan so that your financial needs are considered holistically.

  6. You can also find more interesting details on the site below: Website: https://www.prudential.com.sg Facebook: https://www.facebook.com/PrudentialSingapore/ Instagram: https://www.instagram.com/prudentialsingapore/?hl=en LinkedIn: https://www.linkedin.com/company/prudential-assurance-company-singapore/ You Tube: https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQ

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