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This Is How You Choose the Most Suitable Endowment Plan

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Endowments are long-term investments in which contributions are typically invested over time, and the principal is not withdrawn.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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Investment

Why Is a Free Share Market App the Perfect Choice for New Investors?

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Share market apps now come with a feature of free account opening benefits and also offer zero brokerage charges functionality for some segments. This helps you lower your total cost of investment and you can invest more in the instruments and earn more as well.

In this article, you’ll get to know about how a share market free app is helping new investors in their journey.

Advantages of a Share Market App

The stockbroker provides you the benefit of investing in different instruments such as stocks, mutual funds, futures, options, etc. from one share market app.

That’s why all the new investors are attracted to this changing investment landscape and they are trying to catch all the possible opportunities.

Here are some of the advantages the new investors are getting from share market apps:

1. Open the Account in a Few Minutes

In this busy life, nobody has the time to visit the broker’s office and open the demat and trading account with the physical KYCs process. Now, the share market app will help you open an account in a few steps and you can complete the full process in an online way.

You can get the credentials of your account in less than 10 minutes and all these steps are completed with no charges at all.

2. New Age of Orders

You can get the features of executing different types of orders in one app such as basket orders for combined positions and trigger orders for some set price level. Other types of orders that are available for investors are bracket orders, cover orders, forever orders, limit orders, and iceberg orders.

3. Execute Options Orders

In options trading, you will get the feature of flash trade where you can pick out the contracts on the basis of the bearish or bullish market outlook. Also, you can analyze the options on the basis of the highest OI, top traded, and ATM and you can execute them instantly.

4. Stop Overtrading

As a new investor, if you forget about your trades and they are getting into losses, then you can use the Trader’s Controls feature which will help you stop that. You will also get an alert if you are doing overtrading. At the same time, you can switch on the notifications for breaking news and updates in the share market.

5. Information about Your Trades

Now, the investors want to know how each day their portfolios and all the trades have performed. The share market apps will provide a calendar view diary of your daily trades and you can see how each trade has made profits and losses in the past as well.

Conclusion

Free market share apps provide you the benefit of opening an account for free which is ready in a few minutes. You can execute different types of orders and options trades instantly. These apps help you avoid overtrading and you can get an analysis of your daily trades. 

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Before You Buy Bullion, Look for These Four Warning Signs in a Dealer

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People dive into the world of bullion for many reasons. They may be unsatisfied with flagging stocks and bonds and want to add an element of diversity to their financial portfolios. They may want to hedge against rising inflation. Others appreciate the economic stability of precious metals but are also interested in developing an impressive collection of gold or silver coins.

No matter what’s driving their decision, those interested in buying gold, silver, or platinum need to look for a trusted source for bullion to ensure transparency, authenticity, and a fair deal. If this sounds like you, here are four things to watch for as you forge this important new relationship.

Numismatic Coins Are Great, but Are They for You?

Looking for bullion as an investment — as a way to diversify your portfolio and stay secure through market unpredictability? Then don’t get talked into purchasing collectible coins: a category that includes numismatic coins, which appeal to collectors for their rarity or irregularity, and commemorative coins, celebrating or honoring an event of cultural or national significance. Stick instead with bullion coins with a higher precious metal value than the mint or authority’s stamped nominal value.

This is not to say numismatic and commemorative coins aren’t worthwhile investments; they just might not be appropriate for your goals.

Don’t Bow from Pressure to Buy Immediately

Don’t bow to scare tactics meant to intimidate you into a rash decision with your money. Some buyers or sellers might refer to a weak dollar, the imminent collapse of banks or fiat currencies, skyrocketing inflation, or other insider information. They’ll do this to pressure you into selling or buying right now (often with a threat that you’ll miss out on a once-in-a-lifetime opportunity or something equally ridiculous). A professional bullion supplier will never do this to you.

Don’t Fall for Weirdly Low Asking Prices

Another word of warning: a trustworthy seller will also not post ridiculously low ask prices. Gold is a liquid asset since it can be easily exchanged without losing value. It’s also fungible, in that one troy ounce is worth the same as any other in the same condition and with the same purity.

Why would a seller have a blow-out sale when dealing with this kind of investment? If you see one, walk away.

Sorry — You Can’t Get Rich Quick

Gold bullion is a wise long-term investment to protect your portfolio against market volatility. When fiat currencies take a dive — and when global events become unstable through a war or a pandemic, for example — gold trucks along with a negative (or asymmetric) correlation to the general market.

And while some years over the past five decades have seen tremendous gains and losses, gold is a largely non-volatile asset with a steady upward trajectory. So don’t believe a gold bullion buyer or seller who tricks you into thinking that gold won’t behave much like it’s done for the past 40 or 50 years.

What’s your long-term goal? If you’ve got a clear vision for your financial future, and bullion is an important interlocking element of that state, then don’t take shortcuts when finding a reputable dealer. Keep your wits about you, think critically, and do your research, and you’ll find a trustworthy and transparent buyer and seller of gold and silver in your area who has your best interests at heart.

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5 Most Googled Auto Stocks in India

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India’s auto sector has been booming for years, and investors are taking notice. The automotive business offers several profitable career paths, from automakers to component manufacturers.

To help you get started, we’ve compiled a list of the top 5 most googled auto stocks in India for online share trading. Let’s find out which companies made the cut and get insight into the auto sector as an investment prospect.

1. Tata Motors

Tata Motors is the biggest bus, truck, tractor, and vehicle manufacturer. Ratan Tata founded the company in 1945. The company has been in operation for approximately 75 years.

Tata Motors’ key brands include Jaguar Land Rover (JLR), Land Rover, Jaguar, Range Rover and Daewoo Commercial Vehicles Co Ltd (DCVL), and Tata Daewoo Auto Ltd.

The company manufactures not only standard automobiles but also buses and trucks, among other commercial and heavy-duty vehicles.

Their range of automobiles is tailored to suit a wide range of customers. Whether it is passenger cars, commercial vehicles, or heavy-duty vehicles, Tata Motors has something for everyone.

2. Maruti Suzuki

Maruti Suzuki dominates the Indian vehicle market with over 50% share. It’s India’s most popular automobile brand, offering models for every need and taste.Maruti Suzuki is constantly growing its manufacturing facilities and production capacity.

To address demand in Indonesia and Vietnam, the company is launching new models. Maruti Suzuki sells millions of cheap, dependable automobiles every year, making it the top choice for affordable automotive buyers. This corporation has risen dramatically in recent years and seems likely to dominate the Indian automobile sector for years to come.

  • Maruti Share Price as of April 2023: ₹8,450+
  • Market Cap: ₹2.57 trillion

3. Ashok Leyland

Ashok Leyland Ltd., situated in Chennai, India, was founded in 1948. This automotive powerhouse makes trucks, buses, and other heavy-duty vehicles. This firm has led India’s automobile sector since its founding and is recognized for its reliable goods and services.

Investors and potential purchasers search the internet for information about Ashok Leyland, one of India’s most prominent automakers. Ashok Leyland is one of the most googled auto stocks in India, with investors and potential buyers alike turning to the internet to learn more about this popular Indian automaker.

  • Share Price as of April 2023: ₹140+
  • Market Cap: ₹414.15 billion

4. Eicher Motors Ltd

Eicher Motors Ltd

Eicher Motors Limited (EML) is one of the largest car companies in India. It makes both industrial and personal service vehicles. Their portfolio consists of the Royal Enfield motorcycle and other products like passenger vehicles, all-terrain vehicles, and construction equipment.

Eicher Motors has an impressive 1Y return of 22.09%. It also has a high profitability rating of 7.5 and positive analyst recommendations. All this shows that the stock is rising in the market and may be a good choice for diversifying investors.

  • Eicher Motors Share Price as of April 2023: ₹3240+
  • Market Cap: ₹889.01 billion

5. Bajaj Auto

Bajaj Auto is India’s second-largest two-wheeler manufacturer. It was established by Jamnalal Bajaj in 1884. It became a listed company on the Bombay Stock Exchange and National Stock Exchange in 2000.

The company makes bikes and motorcycles under the Pulsar and Discover brands, respectively. Bajaj Autohas over 80 years of automotive experience and is one of India’s most sought-after companies.

  • Bajaj Auto Share Price as of April 2023: ₹4,300+
  • Market Cap: ₹1.22 billion

Conclusion

The Indian automotive sector has garnered strong interest among investors, as reflected in the top 5 most Googled auto stocks in India. With the Indian economy’s projected growth, these auto stocks could potentially provide diversification options in the auto sector. Nonetheless, making informed decisions based on careful analysis of the market and individual stocks is critical for minimizing risks and maximizing returns.

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