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This Is How You Choose the Most Suitable Endowment Plan




Endowments are long-term investments in which contributions are typically invested over time, and the principal is not withdrawn. In essence, an endowment plan lets you lock in a lump sum amount as an endowment investment for some time.

These plans differ from savings plans, which allow you to encash your investment at any time. One can also end up with a tax implication on returns realized from a savings plan. However, this liability might be avoided if withdrawals are made as a systematic withdrawal plan.

If you’re looking to safeguard your family’s future and help them sustain their finances in the event of your unfortunate demise, an endowment plan certainly fits the bill for you. However, with numerous options available in the market, it can be quite hard to get your hands on a good plan.

This article describes how an insurance plan calculator can help you choose the right endowment plan for your requirements:

What is an Endowment Plan?

An endowment plan is a type of insurance policy that combines both an insurance policy as well as a savings plan. With the growth in the money value, one can get a lump sum amount on maturity of the policy, if alive at that time.

You receive the cash value at a specific date in the future, but you usually pay a lower monthly premium since your death isn’t considered likely. If you pass away before the end of the term, any unused funds go to your named beneficiary.

Different Types of Endowment Plans

1. Low-cost endowment plan

This plan is designed to help policyholders build a corpus for the future. It is usually used to repay loans, mortgages, etc. The sum assured can be paid to your beneficiaries if you die before the term of the plan ends.

2. Guaranteed endowment policy

This is a type of insurance plan meant to guarantee that your beneficiaries get the money in the policy no matter when you pass away. At the time of maturity, the face value amount in your policy gets paid to you.

3. Unit linked endowment plan

This is a kind of insurance plan that comes with a savings component. The money you pay every month gets divided into two parts, one part goes towards the policy, and the rest depends on your risk preferences.

4. Full/with-profit endowment policy

The policy guarantees the sum assured regardless of the investment value of the policy. The final pay-out received under this policy is higher than in other types of endowment policies because it offers both the sum assured and the bonus amount.

5. Non-profit endowment policy

Under this policy, the amount the insurer pays to the policyholder’s beneficiaries as a death benefit or as a maturity benefit is determined by subtracting any paid premiums from the face value of the policy.

Salient Features of Endowment Plans

1. Serves dual purpose

An endowment plan is a type of life insurance plan which allows the holder to enjoy dual benefits of life insurance coverage and an investment option. With an endowment plan, you can ensure financial security for yourself and your loved ones.

2. Provides death benefit

This plan combines life insurance and investment in a single policy, providing financial security to your family when you are no longer around. In the event of your death during the policy term, the entire sum assured amount will be paid to your nominee.

3. Provides maturity benefits

The maturity benefit means that if you survive the entire term of the policy, you will get a lump sum payment. With this plan, you can invest your money in the long run. The maturity benefit encourages you to have disciplined saving habits.

4. Offers guaranteed additions

Endowment plans are participating insurance policies, which means the insurance provider will declare annual bonuses for them. Endowment plans offer guaranteed additions in the form of a death benefit or maturity benefit in case the life assured passes away during the policy term.

5. Tax benefits

Premium payments made towards a life insurance policy are eligible for tax exemption under Section 80C of the Income Tax Act, 1961. The maturity amount you receive can also be tax-free, depending on your income level.

How Insurance Premium Calculators Help You Find an Affordable Endowment Plan?

As you may already know, an insurance policy is nothing but coverage against death in return for recurring premiums. Knowing how much premium you would have to pay will allow you to gain a better idea about the policy and facilitate your decision.

With the help of an insurance premium calculator, you can define your policy preferences such as the required tenure, payment frequency, premium payment terms, policy term, and a lot more. Based on these details, the tool will calculate the expected premiums for your policy.

These calculators are completely web-based, which means you can use them on any device with a web browser. Moreover, you can always tweak your preferences and change your policy options to accommodate the premiums as per your budget.

Additionally, it is pretty easy to use these tools as they are self-intuitive and consist of only drop-down selection panels with pre-included options that you can choose from. These insurance premium calculators are great to make an informed decision.

Therefore, if you are looking for a good and affordable endowment plan to secure your family’s future financially, you should consider using these calculators to make your decision more informed and backed by calculations.

Bottom Line

There are many types of endowment plans available in the market today, and it can be difficult to choose the most suitable one. The need for you to decide on this should arise if you want to ensure that your money will be safe while providing you with a regular income when you retire.

The main features that should guide your decision include risk, returns, liquidity, and tax benefits. We hope that our post has helped you understand how to choose the best endowment plan for yourself.

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How to Start Investing in Cryptocurrencies




Cryptocurrencies are one of the greatest innovations of the 21st century. Not only are they an incredible thing on their own but they’ve slowly crept their way into many other facets of our life such as poker and video games and are being integrated everywhere in new, interesting, and exciting ways. Of course, because it’s so new there are many people who are only now getting into it and have many questions about cryptocurrencies and the various systems that are intertwined with them. We’ll go over everything you need to get started with investing in cryptocurrencies so that your journey can hopefully be simpler.

You need a wallet

Just as you store cash in your wallet, you’ll also need a crypto wallet for cryptocurrencies. There are many different kinds, but you don’t need to worry about that too much at the start, a simple desktop wallet will be good enough to start with. Just make sure to research online and find one that has a good reputation. There aren’t that many differences between them but it’s important to be sure you’re downloading one that is legit. Once you’ve secured yourself a wallet you can finally get started on your journey of becoming a crypto trader.

Time for the currency

Once you’ve obtained a wallet you can go about buying some cryptocurrency. There are many different ones to choose from and that number just keeps on growing. Picking which ones to invest in is an important choice, but when starting out it’s best to stick to the more stable ones and ignore the ones that are in their infant stages for now unless you are certain you know what you’re doing.

Of course, stability is relative and even the most stable cryptocurrencies have big fluctuations and they have them quite often too. It’s something that you’ll need to get used to, market volatility is one of the biggest draws for some people as while it does mean big potential losses it also means that profits are potentially ludicrous as well so risk takers are in their element.

Keep up with the news

Cryptocurrency at the end of the day has close ties to IT and as with anything, IT related you really need to keep up with the trends, innovations, and news in general. This doesn’t just mean keeping up with all the latest things in the world of crypto though. You’re not only required to follow crypto news but the news in general as big events in the world such as wars, new laws being passed or similar things can have big effects on the prices of various cryptocurrencies.

Being aware of everything that’s going on is one of the most important characteristics of any good crypto trader. It’s also important that you’re able to make good financial and market decisions based on that information but that can’t be done without first actually following the news so let’s take it slowly. If you already enjoy following the news and have a passion for new information then that’s absolutely perfect.

Be patient

Success in the crypto world rarely comes quickly. Usually, it takes quite a bit of trading to get your first big win and make good cash. In the beginning, it will usually be either small losses or small wins but both are fine as you’re learning and improving yourself. As with any skill it takes time to hone it and become good at your craft so don’t worry if you’re having a slow start, it’s more common than you may think.

Remember to pace yourself and not get discouraged. Keep a cool head, keep grinding, and eventually, you’ll reach success. There are many uncertainties in this line of work so it’s important that you are able to deal with them and keep going in spite of anything that may occur.

Have fun

The last but possibly most important thing is to enjoy yourself. Many of the best crypto traders genuinely enjoy what they’re doing and it’s that mindset that has allowed them to thrive in an environment that can easily swallow your wallet and mental health up. If you’re having fun and actually enjoying the market volatility and everything that comes with the job it’s a perfect recipe for success.

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What Every Investor Needs to Know about DeFi Coins and Tokens




The DeFi protocol is one of the most hyped block-chain-based projects. DeFi or also known as decentralized finance aims to cut out all transaction middlemen and offer users unparalleled convenience and lighting fast service.

Since the popularity of DeFi is on the rise, it’s normal that more inventors are interested in DeFi tokens and the features they can enjoy. There are currently more than a thousand coins trading in this sector and its market cap is exactly $50 billion. So, it’s easy to see why some might want to take that leap and bet on the future of DeFi.

So, without any further ado, let’s take a look at DeFi coins and tokens and what you should know before investing.

The list of coins

As we slowly progress toward the future of blockchain technology, more and more DeFi coins emerge, and each of them is different from the others.

That being said, when doing your research, you might notice that DeFi coins and DeFi tokens are used interchangeably. However, that should not be the case as both have different features.

DeFi coins

DeFi coins (such as Bitcoin) were designed for monetary purposes and they can be used to purchase goods and services. If you are a seasoned veteran in the crypto world, you are probably acquainted with other coins such as Ethereum and Litecoin, which serve the same purpose.

Digital coins can rise and fall in price fast. This is called volatility and DeFi coins are as volatile as cryptocurrencies get. To save your wallet from a potentially disastrous trade decision, never invest too much when experimenting with DeFi coins.

DeFi tokens

While DeFi coins are used to make transactions, DeFi tokens work for the investor. What this means is that when you obtain DeFi tokens, you can earn interest on them and trade them to make profits.

DeFi coins are native to their blockchain while DeFi token assets are set up on extrinsic blockchains such as Ether or Bitcoin. Some of these tokens serve no other purpose than to have value, while others can be actively used for trading. Some investors obtain these tokens to have a proper hedge against inflation.

And now that we know the difference between coins and tokens, let’s take a look at why it would be a good idea to invest in them.

How to invest in DeFi tokens and coins

Many people believe that you cannot invest in DeFi coins or tokens unless you do so in DeFi protocols. This is not true because most cryptocurrency exchange platforms list popular DeFi tokens.

You probably already know how to buy cryptocurrency. But, let us walk you through the process once again:

  • Make a crypto wallet. You probably have one if you have ever invested in cryptocurrency. If you don’t have one, you should create one. It will be used to store, receive and send DeFi tokens. Some wallets out there are integrated with your crypto exchange of choice and there are probably guides on their site that you can use to ensure maximum security for your assets.
  • Purchase your tokens. After you have created your wallet, connect it to the governance platform that is used by your chosen protocol. You can then purchase any DeFi token that you desire and have it transferred to your wallet.
  • Lend or borrow your assets. After the assets are purchased, you are free to use them as you see fit. DeFi coins offer a unique feature that crypto coins do not: you can borrow or lend assets without having to give up custody. In turn, you can earn interest and set yourself up for a solid passive income.

But the reason for investing in DeFi is entirely up to you. If you do believe that these assets have the potential for growth, feel free to visit the major crypto exchanges to get your hands on them.

Final thoughts

If you are already active in the crypto market, you are probably well acquainted with DeFi coins and tokens. That being said, if you were not aware of the existence of these types of assets, it’s good to get into them as they have a lot of potential for success in the future.

Some individuals praise DeFi coins as the future of digital coins and if you want to be smart about your investments, keep in mind that a diverse portfolio is a good portfolio.

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Investing in Medical Companies




There are many investment strategies you can use to reach your objectives. Some include diversifying your portfolio in as many fields as possible, while others call for narrowing your attention to one. Medical companies are an excellent place to start your search if you’re considering the latter as your strategy.

The healthcare industry can come in a few different forms, and depending on your interests and what you want to achieve, some options might work better. For instance, companies can be in the pharmaceuticals and devices, insurance, or even care provision sectors. Furthermore, market forces affecting one might not necessarily impact the others, while sometimes can have ripple effects.

So keep reading to learn more about investing in medical companies, and use this trading guide in the UK to help you get started.

Trends in the Healthcare Industry

When investing in companies in a particular industry, it’s always prudent to look at the sector as a whole to learn how trends affect them. The same applies to medical companies. Trends and events in other industry areas could significantly affect the companies you’re investing in and drastically affect your return on investment.

Furthermore, they can either be positive or negative and changes in trends adversely affect how companies in the health industry perform.

Positive Trends

  • An aging population
  • A longer lifespan for people with chronic diseases
  • Advancements in medical technology
  • The global spread of diseases
  • Customised medication

Negative Trends

  • Uninsured patients
  • Cost controls
  • Spread of consumerism

Where Can You Invest?

1. Big Pharma

Both pharmaceuticals and biotech companies are massive drug manufacturing entities. The main difference between them is how and what type of drugs they manufacture. Pharmaceuticals specialise in drugs made from small chemical compounds easily absorbed in the body. On the other hand, biotechs deal in drugs made of large proteins that don’t easily get through the cell membrane, giving them a slower intake than pharmaceuticals.

However, big pharma presents good opportunities to make long-term returns as an investor. But you have to be aware of a few factors before deciding which company to invest in:

  • What diseases and conditions do a particular company’s drugs treat?
  • What is the size of the market for said drugs?
  • Do the drugs meet all of the Medicines and Healthcare products Regulatory Agency standards, and how were the development and marketing handled?
  • How many patents does the company hold?
  • Are there any substitutes or synthetic versions of the drugs the company offers?

Once you have a clear picture of these factors, you will start to see the profit potential of the companies and know which ones to invest in.

2. Health Insurance

The other major player in the healthcare industry is the guy who foots the bills, the insurance companies. One thing to note about this sector is that there is a time delay between the rendering of health services and the payment of the bills. As such, it’s always best to look for one with a good reputation and a strong balance sheet to ensure it not only meets its obligations to its investors but the insured as well.

Another critical thing to look for while picking an insurance company to invest in is its medical cost ratio. This is the ratio between the cost of covering medical claims and the profit left after deducting them from the premiums collected. The lower this number is, the better the company is as an investment.

Reasons to Invest in Medical Companies

1. Strong Earnings and Growth Potential

In the last five years, the healthcare sector has seen a compounded growth rate of 8.1% in the S&P 1500. This has translated to excellent returns for investors, and the industry is only poised to do better.

2. Healthcare is a National Security Issue

The UK government views healthcare as a national security matter and can never let the industry run rogue or dilapidated. The industry also receives a lot of government support, and investors enjoy some of these perks and the investment security it affords them.

3. Health Care and Medtech

Investing in companies offering health care and Medtech increases the potential for future growth and returns while improving the human condition. The investments you make today pay off in the future in terms of good returns and better medical care when you fall ill.

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