Should You Use Life Insurance As an Investment?
- July 26, 2016
- Business and Management
- No Comments
You will find two common varieties of insurance coverage in the industry – term insurance and device linked plans, or ULIPs. There is another kind of insurance – which is popularly known as investment based insurance – endowment plan.
One of the questions that pop to your mind is that "Should you use life insurance as a great investment? In other words, when we have a considerable spend that is planned towards insurance policy, why exactly should we not get returns out from the investment, along with the insurance cover? That, specifically, is the idea lurking behind an endowment policy, enabling you to buy life policy and also stand to gain from the benefit point of view. You can check bakerig if you are interested to know more about Endowment Plan.
What is Endowment Plan?
One of the popular attractions associated with investment in insurance is that you would be entitled for regular and built up bonuses and would also benefit from survival benefits at the end of the term of the insurance policy.
When you buy life insurance coverage, you would also be eligible for returns at predetermined rates. As much as bonuses are concern, they tend to get accumulated and receive money to the insured after maturity of the insurance plan, or to the nominee after death of the insured.