Are endowment plans a good "investing" strategy for someone who has very low risk tolerance? Is it generally safe?

An endowment plan is definitely a great option if you do not intend to take on too much risk. They are generally considered low-risk investments that provide a higher return rate than traditional saving accounts. For a 10 years Endowment plan, the return rate can go up to 4.75% per annum.

Should you be interested to find out more, do get in touch with us.

Disclaimer It is important to note that endowment plans are different from fixed deposits or savings accounts.​​​

Hi Anon,

Yes, endowments are definitely a low risk investment and is a good fit for your profile. However to note, as per all investments, whatever you are presented with in regards to the returns are non-guaranteed in nature. But once the insurer does it's annual declaration of bonuses, then those become guaranteed and part of the cash value of your policy. There are certain products out there that can be also used for legacy planning, as these policies can be transferred up to 3 generations if there is still cash value available in the policy.

Also with your age, I do think you can afford to look into some form of regular investments either through your bank or getting a full investment ILP. Cause investments are always for the long term, and with your age, you do have the ideal time horizon as well.