Insurance product that combines a savings element with life cover. Returns are a mix of guaranteed and non-guaranteed; pays out at maturity or on death.
A hybrid insurance product that combines life cover with a savings / investment element. Pays out a lump sum on maturity (typically 10 – 25 years) or on death of the insured during the policy term. Marketed as a 'guaranteed savings' vehicle for medium-term goals.
Typically 2% – 4% net return on participating endowments — comparable to fixed deposits over similar tenures, occasionally a bit higher. Far below long-run equity returns. Returns include guaranteed plus non-guaranteed bonus components.
Generally no for pure investment purposes — ETFs or unit trusts in similar holding periods give higher expected returns. Endowments make some sense as forced-savings for specific medium-term goals (down payment, child's tuition) where you want guaranteed returns and behavioural commitment.
Steep. Surrendering in the first 5 – 10 years typically returns less than total premiums paid. Endowments are designed for hold-to-maturity. If your situation may change, term insurance + ETF investing offers similar protection with full liquidity.