Why you should get an endowment plan in your 20s?
Assuming that you are in your 20s now, it is likely that you have a job and are earning your own money then you might want to consider building a disciplined savings habit. Your lifestyle will only start to get more expensive from this point onwards as your expenses grow. However, your future self will thank you for planning ahead and gathering the resources you need at an early stage.
You may not be earning a lot at the start of your career. However, you have one thing that higher-income individuals do not have which is time. Because you have time for your money to grow, even saving a small amount each month can make a huge impact on your life. Owning an endowment plan is an ideal way to start because it allows you to be disciplined and save regularly. All you have to do is to make sure to keep up with your insurance payment. Before you know it, you would have accumulated a small fortune for yourself. Here are some of the reasons why your 20s are the best time to get an endowment plan: Predictable and low-risk investment: Stocks and other investments can be a quick and easy way to grow your wealth but, if you are new to investment then you may want to consider starting out with a low-risk form of investment such as owning an endowment plan. When it comes to investments like stocks, you fully bear the investment risk. With the current market volatility, there is a high chance that you will lose most of what you put in. An endowment plan makes more sense for a first-time investor as the risk is less.
Compound interest: Saving for long-term goals such as retirement in your 20s gives you advantage all thanks to compounding interest. The monthly premiums you save grow exponentially because of the interest building up over time. Even a small amount can grow over two or three decades and with endowment plans the policyholder gets higher returns with longer maturity periods. Achieve mid-term goals Endowment plans are not just for long-term goals like retirement. You can use the plan to save for mid-term goals as well. Whether it is seeing yourself getting married in 10 years’ time or making a down payment for a home, your mid-term goals can be met with the help of an endowment plan. It is never too late to start saving for your goals no matter how far away in the future they may seem. The sooner you take advantage of the time you have to start saving, the more wealth you can generate over time and use it when you need it most. The best type of endowment plan is the one that suits your needs and requirements the most. Make sure to get in touch with an expert or speak to an advisor before to help you select the best plan.
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