Is income gro gen saver the best endowment plan now?

Hi anon,

The best endowment plan is not the one with the best return. The best plan is the one that fits into your financial portfolio and helps you achieve your goals.

Thus, without knowing what your ultimate goal is, it's very hard to suggest an endowment plan that would be the 'best' for you.

Having said that, Gro Gen Saver is a whole of life endowment plan which means that the value of the plan will continue to grow as long as the life assured still lives. It can be transferred to a secondary life assured (typically a child) to continue to build value.

Such plans are typically more suited to assist the next generation in having a headstart in life instead of having to restart their wealth accumulation. The value of the plan can be partially withdrawn and the remainder will continue to grow. However you can also use this plan to accumulate wealth for retirement, except that you must remember to withdraw from it when the time comes!

Surrendering such plans too early is not recommended. Best to keep such plans for 20 years or more.

On the plan specifics, Gro Gen Saver has relatively high _projected _yield. The table below shows this, and is a comparative analysis of similar plans on the market. However, it does not have the highest guaranteed yield, so if guarantees matter to you, then this may not be the plan that suits you.

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Hi Anonymous,

In my personal view, there is no best endowment plan. More importantly, it depends on whether it fits into whatever financial objectives you have.

Also, do note the following clause which can be found in the proposal:

Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value payable (if any) may be less than the total premiums paid.

In other words, are you able to commit to paying premiums on time and in full, so that you will reap the cash value benefits as part of your financial objectives?

Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker