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!

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