facebookWhat do the community think about having a Long term endowment plan e.g 20 years for someone who just started working? What are the pros and cons? Thanks in advance! - Seedly

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Anonymous

18 Apr 2019

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Insurance

What do the community think about having a Long term endowment plan e.g 20 years for someone who just started working? What are the pros and cons? Thanks in advance!

Discussion (4)

What are your thoughts?

Soon Xiaohui

Soon Xiaohui

28 Aug 2018

Analyst at Common Place

Hello There,

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To be honest, it is depending on what is the purpose/objective for the plan? There is many alternative options. And premium term affects the overall ROI of the plans. Let me put this in a simple way: Paying a 20 years premium does not guarantee you will have a good return as every plan is designed & calculated differently. Sometime a short term premium (5 years premium) with a long duration (maybe 20 to 25 years of holding period) can give a much higher ROI however this is solely depending on your budget.

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But for someone who just started working, I would recommend you to look into your cash flow (expense), learn on how to manage it, create an emergency funds & saving up in alternate bank accounts (especially if you do not have a saving habit, time to build the habit). You may put partial of your saving into SSB while you learn more about endowment, investment.

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Please do not hurry and commit into a plan without understand its nature. If you really wish to speak privately, do feel free to pm via facebook~

you will be locking up your cashflow for very long time for mediocre returns. are you comfortable with it?

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compare the returns with ssb avg 2%+ for 10 yrs, with 1 month flexibility

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dont rush to lock in your money without comparison

Eric Chia

Eric Chia

20 Aug 2018

Senior Financial Consultant at Prudential

Long term endowment (or commonly called savings) plan works to make you disciplined in savings. For ...

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