Why you need an Endowment Policy (even while you are Pre-Rich)

We’re all constantly thinking of new ways to save money, especially when it comes to saving towards a particular target. We use apps, banks, and even in 2021, our pillows.

Do you know what these all have in common? Your money is somehow still right in front of you, tempting you at every turn. Without a great deal of discipline, you’ll break into your savings and never reach your goals.

According to independent surveys by She Leads Africa, 73% of young women in our audience said that their top money goal right now is financial independence. In another survey, 58% of women highlighted their top money goal as ‘saving and investing for my future’.

Now if you earn a decent, steady income but you’re always breaking into your savings, when are you going to achieve financial independence, or even save towards your future?

Luckily, there’s a more efficient way to save towards your goals that you’ve probably not heard of in the past- an endowment policy. Never heard of it? Well, you’re in luck, because that’s what this article is all about.

 

So, what is an endowment policy?

An endowment policy is a plan to help you meet set financial targets and obligations at a particular date in the future. You set a goal, pay periodically towards that goal and your policy provider pays you your set target amount plus a pre-fixed interest sum on your target date.

With an endowment policy, you’re able to put money aside with a trusted institution and get a specified amount back at your target date.

An endowment policy could also double as an insurance plan as in the event of death, accident, or illness (in the terms covered by your plan). Your target amount is paid to you…even before the target date.

 

Why should you get an endowment policy?

You’ve been trying to save for yearsss: You’ve tried a bunch of methods and nothing is working. It’s definitely time to try an endowment policy.

You want to be accountable: Endowment policies are a great way to plan towards your goals. You’ll have a specific target amount to save monthly towards your goal and the payment plan keeps you accountable.

You want to stay focused: With a target date and a target sum, you can keep your end goal and payday in mind and actively work towards it. You’re not spending the money you’re saving on something else. Your money is safe and secure till the agreed date.

You’re saving towards a specific goal: Could be a master’s, a car. your kids’ education or even a wedding! Get the funds you need when you need them…with no excuses.

You have money: No, that’s not a typo. If you have money and a plan for your future, you SHOULD get an endowment policy.

Other benefits…


Tax relief: Some endowment plans qualify for tax relief so the amount of tax you have to pay is reduced. 

Your estate is covered: In the event of death, your target sum is paid back to your estate and the policy terminates.

Back-up funds in case there’s an accident: If you ever have a serious accident, you’ll have your target sum to fall back on even before the set target date.

Fall back plan in critical illness: If you get critically ill? We know hospital bills can be a pain. You’ll have your target sum to fall back on and help you pay your bills!

Where do you start?


A good example of an endowment policy is the Leadway Target plan. You can contact Leadway Assurance right now via DMs and they’ll put you on all you need to know!

 



About She Leads Africa

She Leads Africa is a community for smart and ambitious young African women. Our goal is to become the #1 digital destination for young women looking to build successful careers and businesses.

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