An endowment plan is an investment option for investors who wish to invest for a period of 5 years or more. Funds invested into an endowment are never taxed in the investor’s hands as the funds are taxed at a 30% rate on the platform. Fees on this platform can be influence by the initial term chosen for the policy.

With an endowment policy the option of adding beneficiaries are available and therefore bypassing the estate in the event of the owner of the policy passing away. Another reason for choosing an endowment policy is a decision based on the taxed portion of the investment, as it is fixed at 30% and therefore it would be beneficial for an investor that has a marginal tax percentage higher than 30% to consider an endowment policy.