Currently I have revosave as my life insurance and it still has a long way to go before it reaches its maturity. Should i consider buying another insurance or should begin investing instead?

Hi anon,

Revosave, although from a life insurance company, is really an endowment plan with really minimal death benefit. I would not consider it insurance in the form of coverage at all.

Actually your scenario does remind me of someone who was recommended to see me for an independent review 3 years ago. She bought her policies to me just to confirm that she had decent coverage, but when I met her, I discovered that all her policies were savings policies and she'd been walking around all this while without even a hospitalization or CI policy to protect her. Quite a scary thought, and goes to show that sometimes people aren't too sure about what they have bought and how it works.

If you do not at the very least have hospitalization and Critical Illness Coverage, you need to get that sorted out first before you start investing. Always remember that you need to protect your downside first. There have been several questions about whether to insure first or invest first, I will link you to one of my answers here so that you can understand more:
https://seedly.sg/questions/if-you-can-only-do-...

As for revosave, if it is within your budget, you can keep it as a form of forced savings for the future. There is a guaranteed return as a basic floor which no other asset class can provide (CPF/SSB/FDs aside). This could be useful for time sensitive commitments in future, for example, children's education.

You mention that you were considering buying another insurance, so you do need to ask yourself, what is the policy supposed to achieve for you? For example, if you were actually looking to save for retirement, then an annuity is a better option compared to an endowment. If not, you can venture into investing once you have sorted out your own coverage. At that point, you will want to understand the various asset classes available, their pros and cons, before decide what might work for you.

Revosave isn't a policy meant to cover you in the event of death, disability, or illness.

It is an endowment/savings plan to provide a lumpsum maturity benefit.

I hope you have other policies specifically for income protection in the event of Death, Disability, and Critical Illness.

If you're specifically asking about saving or investing money not for the purposes of protection, then buying an endowment plan is also a form of investing.

You're investing in a conservative portfolio with a floor of guaranteed returns.

If you're thinking about taking higher risk, then you should look at setting up a diversified portfolio with a higher allocation to equities.

If you're fine with a conservative return, then you can consider purchasing another endowment. Another option would be a retirement income product or an annuity.