What is an endowment policy?

Endowment policies are life insurance policies that have a savings component to them. In return for premiums paid you get an assured benefit amount on maturity at the end of term or death benefit, whichever happens first. Endowment policies are very popular but they are not the best solution for insurance or investment need. Insurance component in these is minimal and due to high charges associated the returns earned do not match that from similar pure investment products.

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