Endowment plans are definitely not necessities but they could be a good addition to your portfolio. Many investors diversify their investments by investing in instruments of different risk levels. Endowment plans could be an option for these investors as a low-risk instrument which requires minimal monitoring while providing them with a potential of 2-4% (approx) yield per annum. Furthermore, there are endowment plans which provide minimal guaranteed maturity values with at least 1% (approx) yield per annum. Thus, if the participating fund of the endowment plan performs terribly consecutively for the term of the policy, the investor could still achieve a yield similar to a fixed deposit. However, this scenario is unlikely as endowment plans typically run for long periods which makes it rare for the policy to be issued zero bonus across the years. Furthermore, once the bonuses are declared, they become part of the policy. Endowment plans thus helps these investors to free up their time and allow them to focus their attention towards investments with higher risks (which translates to higher potential returns). Endowment plans are also suitable for parents who are looking to put aside money for their children's education. Parents want to make sure that regardless of what happens to them, be it death or disability, their children get a chance to pursue the education they deserve. With an endowment plan, should death or total disability happen to the policy owner, the endowment plan would pay out a lump sum of money which can then be used for the children's education. Endowment plans also provide the discipline (which some parents may lack) by locking away the funds until the maturity date. This ensures that the children's education funds remain untouched until it is needed. In conclusion, endowment plans are definitely not necessities but it can serve as a good instrument to certain groups of people. Thus, be clear of the reason you are purchasing an endowment plan before committing to it. Should you have any queries, feel free to contact me at https://m.facebook.com/vinson14 or drop me a text at 94318747.