22 Nov 2019
It seems like both have the same non guaranteed and guaranteed returns?
There is a very big difference between the plans. Both aim to accumulate wealth, but ILPs can have protection elements. Here is a list of key points to note (not exhaustive)
Any consideration for getting such plans should be done only have you have sorted out your basic insurance (medical, CI, death/TPD) and establish an emergency fund.
Endowments offer a guaranteed benefit (payable by the insurance company) and a non guaranteed benefit (based on the performance of a fund with all par policyholder monies pooled together).
ILP generally do not offer guaranteed benefits and the non g'tee (usually everything) is dependent on the performance of a certain managed funds chosen by you.
For endowment plans, your money is invested into the insurance company's participating fund. In this...
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