What's the difference between endowment vs insurance savings?

Hi anon,

Endowments are a means to build up wealth in a safe manner.

In fact, to endow is to give or bequeath an income or property to (a person or institution).

Thus endowments have a maturity date where by your proceeds from what was invested are returned to you.

In that same vein, insurance savings are practically similar to endowments. The only difference are the characteristics of the endowment.

For example:

• Does it last for a limited number of years? Or a life time

• Does it mature in one lump sum? Over 3 years? Over 20 years?

• Is ownership transferrable?, etc

In the end, most plans are a variant of an endowment. A saving plan is an endowment. A retirement income plan is also a form of endowment. A plan with coupon or cashbacks are also a form of endowment.

To the consumer, they could be considered one and the same.

Hi Anonymous,

Not sure what you meant by "insurance savings", but endowment policies in general are savings plans with some insurance component.

Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker