In addition to that, people back then (60s or 70s) did not have much knowledge about ways how to invest their money. Therefore endowment was attractive because of its return.
Add to this that there were not many options available for investments as well. The two most popular forms of insurance plans available that time were the traditional term life plans and the endowment plans.
Its true that against the term life plans, which doesn't offer any return other than the death benefits, endowment plans were a better options for the people. The returns too looked attractive because it was calculated on the then price index, and hasn't taken the inflation rate into consideration, which has exploded since then.
Yeah, I guess I first need to qualify my need before getting a new policy. Thanks guys.
That's just the right approach.
I believe that the customer should always purchase a plan that suits his needs best. However, I've seen many to believe what other say and follow the trend. I guess, that's another reason why the endowments plans have lost their popularity.
Universal plans and equity indexed plans are now in trend. Most of the policy holders feel that they will be better off by purchasing what is current in the market and don't evaluate their needs much.
Universal plans are good for investment purpose, but it may not always be the right option for people who have their families' interest to preserve.
