Aviva vs. AIA Endowment Policy?

I have been looking for an endowment policy for my child's education that is coming up in 20 years.

Been given 2 quotations, Aviva's MyLifeSavingsPlan vs. an equivalent from AIA. Should I be fixated on the past participating fund performance? Because AIA has projected a higher value compared to Aviva.

However, I have been see-ing Aviva's endowment policies being recommended by multiple websites as being a preferred choice in many different scenario.

Thank you for the help in advance :)

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Pang Zhe Liang

02 Nov 2020

Lead of Research & Solutions at Havend Pte Ltd

Assuming that both plans provide similar features and benefits that fulfils your needs, you may wish to consider the participating fund's performance, as well as the total expense ratio.

This is because the participating fund's performance will determine the plan's ability to give you the promised rate of non-guaranteed returns in due time.

More Details: What is a Participating Fund Singapore

Additionally, it is important to realise that a single year's performance may not have an immediate impact on that year's bonus. This is because of smoothing of bonuses.

More Details: Smoothing of Bonuses Singapore

Consequently, it will be helpful to work with a reputable insurer that is capable of giving you the promised rate of return in 20 years' time. Nevertheless, past performance is not an indicator for future performance.

Finally, here is the latest results from AIA Singapore: AIA Participating Fund Performance 2019