Should I get the Great Eastern Great SP endowment plan for its TPD coverage?

Hi anon,

The GE SP plan only provides marginally more TPD coverage (I think 105%) compared to what you put into the plan, since the main purpose of the plan is not TPD coverage. However, it is admittedly better than none at all.

You can consider this plan if you don't feel that you will need the $10K for the next 2 years under any circumstances, since any early withdrawal will lead to financial losses. (This is assuming that your current medical condition makes it impossible to get TPD coverage, else a normal term plan would be far more cost effective, even if there was loading)

Generally, if you need insurance coverage, then you should get a life insurance policy. This is opposed to using an endowment policy.

For one reason, an endowment policy will only cover you for a limited amount of time, e.g. 15 years. In effect, you will be presented with the same problem (lack of coverage) thereafter.

Having mentioned that, an endowment policy may be used to boost your basic life insurance coverage for a short period of time. However, it shouldn't be used as your main insurance coverage.

For insurance protection, you may look into proper insurance plans, e.g. term insurance, participating whole life insurance, or an investment-linked policy.

More Details:

What is a Term Insurance Policy

What is a Participating Whole Life Insurance Singapore

On the whole, I will suggest for you to do a comprehensive financial review. Through this process, it allows you to make long-term planning and execute decisions that are right. For this purpose, you may wish to use an insurance portfolio summary to help you.

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Why Every Client needs an Insurance Policy Summary

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