An endowment policy pays a benefit if you die during the term, and also aims to pay a lump sum if you survive to maturity. Part of each premium funds risk cover; part builds a savings or investment element. Costs and return assumptions need clear eyes before you treat it as a pure investment.
Key takeaways
- It is usually more expensive than pure term life cover for the same death benefit.
- Maturity values may be illustrated, not guaranteed, depending on product design.
- Surrendering early can return little after charges.
- Compare the protection need and the savings need separately before bundling them.