I’m servicing endowment plan today for 100 dollars a month. It will mature in 15 years. Should I give up my endowment plan which my parents bought for me? - Seedly

Insurance

PFF Panel 1

Seedly PFF 2019

Asked by Jermyn Wee

Asked on 02 Mar 2019

I’m servicing endowment plan today for 100 dollars a month. It will mature in 15 years. Should I give up my endowment plan which my parents bought for me?

1

Answers (3)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Chua Jovantre
Chua Jovantre
Level 2. Rookie
Answered on 29 Mar 2019

Does your policy have a yearly cash back feature which you are entitled to take out? If so, you can consider taking out this cash back benefit and explore other avenues to put your money into. Ultimately, you still need to diversify your investment portfolio even if you are aiming for higher returns. And, safer alternatives like endowment policies and bonds makes up part of it.

0 comments

0
Jermyn Wee
Jermyn Wee
Level 3. Wonderkid
Updated on 07 Jun 2019

Thnks for your reply Gabriel.

I think its because the interest they give is really quite bad. ANd i still have 15 years to pay for this plan. If i give it up i can use that to invest somehwere and get beter returns.

1 comment

0
Hariz Arthur Maloy
Hariz Arthur Maloy

04 Mar 2019

It really depends on how long you have been paying for, the current surrender value and the IRR from today onwards. You'll have to do an opportunity cost calculation and break even rate on any investments you would replace this $100 with. The good thing about your endowment is at least it has guarantees and returns are predictable. Treat it like a bond. Speak to an advisor to see if it's worth it.

Why do you want to give it up?

I think you can treat it as a long term savings. Returns are not fantastic but it helps you save up.

0 comments

0