I've seen the recent short term endowment post : https://blog.seedly.sg/singapore-life-short-term-endowment-plan and therefore wonder if it is worth buying? - Seedly

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Asked by Anonymous

Asked 1w ago

I've seen the recent short term endowment post : https://blog.seedly.sg/singapore-life-short-term-endowment-plan and therefore wonder if it is worth buying?

Which makes more sense, 3 or 5 years? Is there added benefit to get through PolicyPal? I have 20k that I do not want to leave in the bank because the interest rate is low.

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Do bear in mind that if you commit to a short term endowment plan, you absolutely cannot surrender it until the the policy matures, or you will lose money. 3 or 5 years, while not extremely long, is still a period whether you will have no access to this money, and hence you need to consider if you will have enough emergency funds to meet your needs during this period. I'd personally opt for the 3 year one to give myself more flexibility, unless I absolutely can live with not having access to the money for 5 years.

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Question Poster

6d ago

Thanks Elijah, but one interesting thing about this endowment is that they got this free withdrawal option, if i get married i can take out partially. Never see this kind of clauses before for 3-5 years endowment. That is the attractive portion.
Elijah Lee
Elijah Lee

1d ago

Hi Question Poster, yes, you are right, I dug deeper into the wording and this clause is indeed a very unique feature. Still, I would have my emergency funds as the first layer to touch first if I need money, instead of having a partial withdrawal and losing some of the benefits. Still, there is no right or wrong, but only what you feel would suit you.

Whether 3 or 5 years makes sense for you depends on your objective. Do you see yourself needing the cash after 3 years? Going through policypal gives some policypal rebate to use for their other products or can exchange for some discount. You can see what is available in their app.

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Question Poster

6d ago

Thanks so much Gabriel. .It's abit difficult to say whether i need the money. Explored the PolicyPal app the rewards marketplace like not fantastic :( But maybe can buy travel insurance when travelling.