Are savings or endowment plans essential?

Would assume you would rather invest than to put too much into savings.

For me, my use case for endowment plan is for when the high yield accounts are coming down just like now!

Most of my emergency money will be parked in flexible endowment plan like singlife, elastiq or dash easy earn to hedge against inflation.

I have maxed out singlife and currently looking into elastiq next month.

On why elastiq(1.8%) rather than easyearn(2%):
http://seedly.sg/questions/should-i-opt-for-das...

Hi Anon,

It depends on what you conisder essential. The benefit of endowment plans is as what you just said, they hedge against inflation. Due to the nature of them being a participating policy, where the insurer will invest on your behalf and give you the returns of investments in the form of annual bonuses.

Compared to saving in the bank, where most of the returns of investments are actually given back to themselves for operational cost and other things. I think if you have the discipline to save, saving in both instruments are beneficial for you.

The good thing about saving in the bank is that it gives you liquidity; you have the option to draw the money out as and when you need. This is definitely something no endowment plan is able to provide.

I have spoken about the better returns from endowment plans, and just to highlight that they are also a lower-risk form of investment as compared to ILPs and investment products. So if you are risk-averse as a person, endowment plans might be a more comfortable instrument for you to invest your money.

Endowment serves to guarantee the amount of money you will need in time to come, while hedging against risks such as health from reaching the target.

There are various instruments that serves differing needs and it is important to choose the right one.

https://www.skyfp.com/2016/02/endowment-safety-...

Don't think so .. I think it's mainly for legacy purpose? :)