Time is money as well and 3 years is seriously not a short duration. At present, many short tenure (3 years) endowment plans are way more attractive than most savings accounts for sitting cash. The appeal is intensified because it also offers some level of death coverage as well as guaranteeing your capital. The question is how do these companies that offer such plans ensure profitability? This question itself is quite telling because there must be an almost guaranteed strategy behind this short term “loan” from policyholders. In this post, I will try to use my knowledge in investments to propose possible methods that these companies use to ensure profitability. Also, we will be addressing why these policies have limited tranches up for grabs. 3 years tenure buys enough time for companies to plan ahead Unlike bank accounts that usually offer returns annually, these 3 year-long policies actually allow companies to try and secure the required returns ahead of time....