Endowment plan
A life insurance policy that also pays a lump sum if you survive the term.
An endowment plan is a traditional life policy that combines insurance with a savings element, paying out at the end of the term if you survive. It is sold as protection plus savings, but the cover is usually small and the return is low once you work out the yearly rate. For most people, term insurance plus a separate investment does both jobs better.
Questions people ask
What is an endowment plan?
A traditional life insurance policy that also pays a lump sum if you survive the term. It bundles protection with a savings element in one product.
Is an endowment plan a good investment?
The return is usually low once you work out the yearly rate, and the life cover is modest. For most people, buying term insurance and investing the difference separately does both jobs better.
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