Savings
2024-05-14 5 Min read
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For an individual who has a family to look after, choosing the right investment policy is critical, as it shapes financial goals. The right kind of investment will help shape your financial goals and manage risks effectively. If you are looking for a policy that offers the dual benefits of savings and protection, then you can consider endowment plans.
Understanding Endowment Insurance Plans
Endowment insurance plans are guaranteed savings plans that can easily align with your individual objectives. Here, a predetermined maturity amount is paid out when the plan comes to an end. This amount is established at the time of purchase and remains unaffected by market changes. This fixed sum called the maturity benefit, provides stability and ensures financial predictability. Along with savings, endowment plans also offer life coverage. If, during the tenure of the policy, the insured individual passes away, then a death benefit is paid to the appointed nominee.
While this is typically how endowment plans work, there is a lot of flexibility that some endowment plans offer. One such example is the SUD Century Gold policy. Listed as one of the best endowment policies in India, the Century Gold plan can help you secure financial stability, generate wealth, and meet future needs.
While this is typically how endowment plans work, there is a lot of flexibility that some endowment plans offer. One such example is the SUD Century Gold policy. Listed as one of the best endowment policies in India, the Century Gold plan can help you secure financial stability, generate wealth, and meet future needs.
SUD Century Gold: A flexible and reliable long-term investment avenue
Investors seek endowment plans for the dual benefits of savings and protection. Endowment plans like Century Gold offer a blend of disciplined savings with insurance, serving as a reliable long-term investment avenue. Its appeal lies in the balance it strikes between accumulating a corpus for future needs and providing financial security to your loved ones. It presents you with a comprehensive solution that addresses both savings goals and protection requirements.
Flexibility in endowment plans
As an endowment insurance policy, the Star Union Dai-ichi Life Century Gold Plan offers the benefits of savings and protection. In the event of the insured’s demise, the appointed nominee receives the death benefit. Additionally, this policy allows you to accrue a significant corpus over time, which helps you avail the benefits of a savings plan.
Despite the guaranteed returns that the Century Gold plan provides, it also offers you the much-required flexibility. Flexibility in endowment plans refers to their adaptable nature. These plans offer you various options, such as coverage, premium payments, or payout benefits. These versatile features can enhance the plans’ suitability to meet your changing financial needs or life circumstances. Let us see how:
1. 2 plan options to choose from:
Most endowment plans offer flexibility in the payout. Depending on the needs and requirements of your loved ones, you can choose the most suitable option.
The SUD Century Gold policy comes in two plan options. Read about both and then make a well-informed decision, keeping in mind your family’s future financial needs. Both options have different death benefits. Let us take a look at both.
1.Goal Sure Plan Option
In the Goal Sure Plan option, in case the insured individual dies during the term of the policy, the policy sum assured is paid out to the nominee. In case the insured outlives the term of the policy, he/ she receives the maturity amount.
2.Edu Sure Plan Option
In the Edu Sure plan option, the death benefit is paid out in three parts:
1.A lump sum benefit is paid immediately after the death of the insured
2.An income benefit is paid out every month, This is 5% of the annualised premium
3.A Guaranteed Maturity Benefit is paid when the policy term is over.
2.Premium paying term:
Endowment plans have a premium paying term. As the name suggests, it is the period for which you have to pay the premium. With Century Gold, you have the choice to pick a premium paying term of 5/ 6/ 8 or 10 years. You can choose a term that is most suited to your plan. Another major advantage here is that you have the option to make changes in the term in case you feel the need.
3.Payment of premium:
Endowment plans offer premium payment flexibility, allowing you various payment frequencies. This flexibility caters to diverse financial situations, enabling you to choose a payment schedule aligning with your budget and preferences.
Century Gold, a guaranteed savings plan, provides adaptability to your changing financial circumstances. If you feel that paying the premium annually might be difficult, you can break down the amount and pay it on a monthly, quarterly, or half-yearly basis. This flexibility allows you peace of mind. You can maintain their coverage without undue financial strain.
4.Other benefits:
There is no denying that an endowment plan allows you to safeguard the future of your loved ones, whether or not you are there with them. In case of an unfortunate event, monetary help can help them sustain a decent livelihood. So whether you are looking for a child plan or want to build up a retirement fund with a retirement policy, the flexibility that is offered by such plans makes planning your financial future simpler and easier.
Along with flexibility and long-term coverage, you can also get the advantage of tax savings when you invest in an endowment insurance policy like the plan. The premium that is paid towards the policy can fetch you tax deductions of INR 1.5 lakhs/ year as per Section 80C. Under Section 10(10D), you can also enjoy a tax-exempt maturity benefit once you have a minimum of 10 times the sum assured of the annualised premium.
Despite the guaranteed returns that the Century Gold plan provides, it also offers you the much-required flexibility. Flexibility in endowment plans refers to their adaptable nature. These plans offer you various options, such as coverage, premium payments, or payout benefits. These versatile features can enhance the plans’ suitability to meet your changing financial needs or life circumstances. Let us see how:
1. 2 plan options to choose from:
Most endowment plans offer flexibility in the payout. Depending on the needs and requirements of your loved ones, you can choose the most suitable option.
The SUD Century Gold policy comes in two plan options. Read about both and then make a well-informed decision, keeping in mind your family’s future financial needs. Both options have different death benefits. Let us take a look at both.
1.Goal Sure Plan Option
In the Goal Sure Plan option, in case the insured individual dies during the term of the policy, the policy sum assured is paid out to the nominee. In case the insured outlives the term of the policy, he/ she receives the maturity amount.
2.Edu Sure Plan Option
In the Edu Sure plan option, the death benefit is paid out in three parts:
1.A lump sum benefit is paid immediately after the death of the insured
2.An income benefit is paid out every month, This is 5% of the annualised premium
3.A Guaranteed Maturity Benefit is paid when the policy term is over.
2.Premium paying term:
Endowment plans have a premium paying term. As the name suggests, it is the period for which you have to pay the premium. With Century Gold, you have the choice to pick a premium paying term of 5/ 6/ 8 or 10 years. You can choose a term that is most suited to your plan. Another major advantage here is that you have the option to make changes in the term in case you feel the need.
3.Payment of premium:
Endowment plans offer premium payment flexibility, allowing you various payment frequencies. This flexibility caters to diverse financial situations, enabling you to choose a payment schedule aligning with your budget and preferences.
Century Gold, a guaranteed savings plan, provides adaptability to your changing financial circumstances. If you feel that paying the premium annually might be difficult, you can break down the amount and pay it on a monthly, quarterly, or half-yearly basis. This flexibility allows you peace of mind. You can maintain their coverage without undue financial strain.
4.Other benefits:
There is no denying that an endowment plan allows you to safeguard the future of your loved ones, whether or not you are there with them. In case of an unfortunate event, monetary help can help them sustain a decent livelihood. So whether you are looking for a child plan or want to build up a retirement fund with a retirement policy, the flexibility that is offered by such plans makes planning your financial future simpler and easier.
Along with flexibility and long-term coverage, you can also get the advantage of tax savings when you invest in an endowment insurance policy like the plan. The premium that is paid towards the policy can fetch you tax deductions of INR 1.5 lakhs/ year as per Section 80C. Under Section 10(10D), you can also enjoy a tax-exempt maturity benefit once you have a minimum of 10 times the sum assured of the annualised premium.
Conclusion
The significance of informed and strategic investment decisions cannot be overstated. Endowment policies are financial instruments that provide a structured financial approach. They allow you to accumulate savings while ensuring a safeguarding mechanism for your loved ones through life coverage. Investing in the right policy at the right time can help your loved ones fulfil their dreams, even if you are no longer around.
Reference
https://incometaxindia.gov.in/tutorials/20.%20tax%20benefits%20due%20to%20health%20insurance.pdf
Reference: SUD Life Century Gold | UIN: 142N087V02
Reference: SUD Life Century Gold | UIN: 142N087V02
Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Smart Healthcare” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in any way indicates the quality of the plan, its future prospects or returns.
SUD Life Century Gold | UIN: 142N087V02 | A Non-Linked Non-Participating Individual Savings Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
SUD Life Century Gold | UIN: 142N087V02 | A Non-Linked Non-Participating Individual Savings Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472
Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.
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