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Quick Tips To Choose The Right Endowment Plan For You

25 Mar 2021
Lady running showing excitement over Gibraltar BSN Endowment Plans

Being a part today’s world may very likely mean that you have accustomed yourself with living in the new normal amid a pandemic. It has not only disrupted our everyday life as we know it, but it has also vividly reminded us of the importance of having adequate protection. 

Turtle hiding inside shell as strong as Gibraltar BSN insurance
Source: Tenor

Having protection may not necessarily only mean protecting yourself and your loved ones. We have heard about how livelihoods have been severely impacted. As such, preparing ourselves for financial uncertainties has also become equally crucial.

As the saying goes, “It is never too early to plan your finances”, so it is important that you ensure your financial route is secure. While some may consider it a hefty task to jointly guard both life and wealth; we have just the thing for you - ‘endowment plans’. 

Life insurance and savings in one plan!?

Man is impressed with Gibraltar BSN endowment plans
Source: Tenor

An endowment plan provides both life insurance and saving benefits. It offers not only life insurance coverage, but also helps you to accumulate wealth over a specific period of time, enabling you to get a lump sum upon policy maturity.

Man is able to achieve his financial goals with the help of Gibraltar BSN endowment plan
Source: Tenor

It’s a great way to help meet your financial goals by giving you a financial boost especially during retirement. It also provides better peace of mind in case of the policyholder’s demise, the nominee is entitled to receive the payout based on claim benefits which ensures a high level of financial security for your loved ones in your absence.

Before you hurry off to look into endowment plans, pocket these tips to help you make the right choice. 

1. Choose plans that offer longer coverage with a shorter payment period.

Did you know that some endowment plans offer a longer period of coverage with a shorter period of payment? These endowment plans not only help to maximise your coverage but continue to help accumulate wealth even after your premium payment term.

For instance, Gibraltar BSN’s Cash Star offers 20 years of coverage on life and savings with only 5 years of premium payment term. With this, you get to pursue your financial goals with confidence.

Two women and a man are amazed by Gibraltar BSN Cash Star's 20 years of coverage on life and savings with only 5 years of premium payment term
Source: Pinterest

2. Know the difference between Guaranteed Vs Non-Guaranteed Returns.

As the name suggests, Guaranteed Returns are guaranteed cash payment at the end of every policy year. These are usually fixed and the rates may differ yearly in accordance to your policy. 

While for Non-Guaranteed Returns, these are extra returns which some endowment plans provide. They include bonuses and non-guaranteed cash dividends which depends on the investment and operational performance of the company.

3. Enhance, enhance and enhance! Choose plans that offer riders.

You can get the best out of your endowment policy by understanding the different riders which can be used to increase the benefit of your policy. These additional benefits may include protection from life-threatening illnesses, relieving anxiety from medical bills or more.

Man wants more riders for his Gibraltar BSN endowment policy
Source: Tenor

4. Estimate your maturity age and the benefits you’re getting.

Before signing up for a plan, always get to know the benefits that you are getting at the end of the plan. You may also refer to the policy’s term to help estimate your age upon maturity.

This comes in handy to help you pre-plan your financial allocations.
There you have it, having these tips in mind will ensure that you get a head start in choosing the right plan for you.

Cat encourages everyone to know the benefits that they are getting at the end of their Gibraltar BSN endowment plan
Source: Giphy

Opt for an Endowment Plan today!

Your insurance policy can do more than just protection. Endowment plans can help you achieve peace of mind by providing both life protection and financial stability. 

Start by checking out our Gibraltar BSN’s Cash Star, which provides exceptional features such as:

  • Having both Guaranteed Cash Payments and Non-Guaranteed Cash Dividents.
  • Upon maturity, you’ll also receive 100% of basic sum assured.
  • Offers 20 years of coverage term for 5 years of premium payment term

You can also check out our other savings-related plans here.