When should I buy an endowment or insurance plan, and how much should I have in the bank to keep paying the premiums?

Hi Alcander,

People get endowments if they have time bound commitments that definitively require the monies in future, and are able to finance the premium out of their cash flow. I note that you are a student at the moment and while it is good that you ask questions now, unless you have income, it will make more sense that you sort out your hospitalization coverage first, and critical illness once you start working. Then, ensure at least 6 to 12 months of expenses are available in your emergency fund before you consider getting an endowment or even starting any form of investment.

You can definitely put your monies in a FD first, since the only penalty is the interest you lose out on if you terminate early.

Hi seow ..

insurance is a very long term commitment .. but u need to secure the basic ones first ... hospital plan a must .. then follow by a life plan... if u can save in a discipline mannner ... then over 10/15/20 yrs.. investing in stocks might gives u a much much bettter returns ..

cheers .