What are the key points to look at in endowment plans. Both long and short term. What are the safe interest rate to be looking at?

What are you intending to achieve by putting money into the endowment plan?

1. Are you looking to save for big ticket item i.e., saving for college education or buying a car?
2. Are you looking for something to beat inflation but with no specific goals in mind?
3. Are you looking at investing but not sure where to begin?

Endowment could be a safe way to save up but there would be the insurance aspect you will be paying for. The returns will also depend guaranteed or non-guaranteed amount. It will also depend on the premium payment.

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Happy to discuss more before you decide on what to buy so you will make the best decision for yourself.

To answer this question fairly, you've to understand the trade off between guaranteed and non-guaranteed maturity payouts from endowment plans. The most recent adjustment in non-guaranteed rates are caused by a multitude of factors - 1 major one being that we are currently in a very low interest rate environment.

A low interest rate environment typically affects equity markets and bonds alike. This affects the insurance company's par-fund projections etc etc.

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A quick answer to your question will then to decide what's the objective of pursuing an endowment plan?

Typically, companies with lower guaranteed par projections have more 'room' to achieve their non-guaranteed projections. And vice versa.

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Happy to share more if there's feedback here :)