Is my Aviva endowment plan, MyEasySaver, worth it?

I bought a 25-year endowment plan from Aviva back in 2017, the sum assured is $16,500.

I'm paying a monthly GIRO payment of $124.70 which will total up to $37,410 over the 25 years period.

However, there is a yearly cash benefit which is withdrawable from the end of 2nd year onwards and it's 5% of the sum assured which amounts to $825.

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Hariz Arthur Maloy

28 Sep 2019

Independent Financial Advisor at Promiseland Independent

Hey Anon, as you can see from the screenshot below, the total projected yield if you decide to withdraw the yearly cash benefits every year would be 1.89% p.a and if you're reinvesting it, it's 2.43%.

If you choose a plan that gives you flexibility, you sacrifice yield. And also this cashback endowment plan isn't the best in its class when compared to other products provided by different insurers.

You can treat this as a bond product, with a regular coupon and some upside upon maturity or a non-coupon bond with a little more upside at the end with an option to withdraw some money a little earlier.

Whether or not, this fits into your overall financial plan, I wouldn't know. But what I do know, is that if you surrender this now, you lose all the money you'd have already invested. And you have to hold this plan to maturity to earn any money.

Speak to the advisor who sold you this policy and ask for his/her basis of recommendation, or speak to an independent financial advisor on what could your options be. Any decision has to come with an opportunity cost calculation and a break-even yield if you do choose to surrender and re-direct funds.

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