Endowment Policies

A savings plan with a payout over a period of years

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Insurance

Endowment Policies

For the returns risk, just remember the non-gauranteed portion have a small risk of giving $0, and a slightly higher probability of giving less than stated, due to market (which is the same as any endowent plants). But since its a pre-loved plan, you can surrender anytime if the returns are not fantastic to you. For the legal risk, its stated in my article. https://www.linkedin.com/pulse/have-your-financial-advisor-shared-you-traded-life-ethan-loh-tat-tian/ For the risk of insurer belly up, it can't be easily found because you wouldn't know whether the person has reached the SDIC limit for his other policies. P.S: I am a self-employed broker so if you wish to, you may engage my service.

Endowment Policies

Insurance

Savings

Regular Shares Savings Plans (RSS)

Alan Kor
Alan Kor,
Level 5. Genius
Answered 3w ago
1) do u like locking up your money for a period of time? 2) is the guaranteed returns satisfactory to you?

Insurance

Whole Life Insurance

Endowment Policies

Term Life Insurance

Brandan Chen
Brandan Chen, Financial Planner at Manulife Singapore
Level 5. Genius
Answered on 08 May 2019
I am an Advisor with Manulife, but due to MAS regulations, we arent allowed to provide any recommendations online without having a full understanding of your profile. However, I can break down the basics for you via this comment. Firstly, we should first understand how much coverage we require for both Early CI and Late CI. Typically, we would suggest a coverage of about 5x of your annual income for coverage. For Early stage, typically about 1 - 2 x of your annual income. Secondly, what are the options available. There are typicall 3 options for you to take up. Whole Life Plan with ECI & CI rider, Term Plan with CI Rider, Multi-claim CI plans which is a term plan that only covers CI but allows for one to claim multiple times. Thirdly, What is your overall budget? My suggestion is that you should NOT spend more than 10% of your income on all your insurance including your health insurance and Personal accident insurance if any. Things to look out for: 1) No of conditions that are covered. For Manulife, we cover a total of 106 conditions, which is one of the more comprehensive CI plans in the market 2) Fine print on the definition of the conditions 3) For Multi-Claim CI, it would be good to take a look at the structure from the various insurers. Some insurers provide 0 waiting period for their ECI claims but do not allow you to claim from the same category of CI again, whereas some may have a waiting period of 1 year for multiple claims but yet do not restrict you in the category of CIs. In conclusion for Critical Illness plans, you may either get a combination of Whole Life and Term, or a Multi-claim CI plan depending on your budget and preference! As for endowment policies, there are typically 2 types, those with flexibility and those without. More often than not, the endowment plans with flexibility tend to generate lower returns as compared to those without flexibility. More importantly, before deciding on an endowment plan, do understand your current risk profile and your savings/investment objective. There are plenty of options for you to grow your money. You should definitely speak to a financial advisor to find out more! Lastly, feel free to connect with me via my email at [email protected] if you would like to have a further (non-obligatory) discussion on your personal financial planning.

Endowment Policies

Investments

Savings

I feel that endowment plans are for people who have problems keeping up with regular savings The returns and time frame is too long and I feel that it would be better to put the money else where Since you have signed up for one it might be wise to stick with it. Cancelling half way will mean a great lost in capital

Insurance

Endowment Policies

Savings

I have done comparison before. Effectively locking the liquidity for 20-25 years, and getting 2.43% of growth seems very inefficient to me. Why not consider putting into your CPF SA for 4% returns to hit FRS, (since if you are about 25 years old, by 55 you can get your excess amount on top of FRS, out), tax relief of up to $7,000 for cash topup, or even topup your medisave to BHS (which also has tax relief)? If you require the money to be in cold, hard cash, you may even consider some universal life like Save3 TIQ which has a 6 years lock in period, at 3% interest, and can look for better deals after that? I would expect interest rate for banks to increase anyway for such a long time. For even for citibank maxi-gain account (which you may require $75,0000) but earns 70% of Sibor + 1.2%. Do review why you want to save so long, and earn a paltry interest in this case... (even DBS multiplier seems to have 2.2% which is so much flexible than the savings plan imho).

Investments

Insurance

Savings

Endowment Policies

Investment Linked Policies (ILP)

I think it is better to get a trust worthy insurance agent that is in it for the long term. The agent will take care of you and provide the high touch assistance. Banks are more concern about selling products

Endowment Policies

Savings

Why do you want to cancel your plan? Is it due to cashflow issues or there is an urgent need for money and that you cannot find any other alternative? If that is the case, it does not matter what the return is because you need the money now. However if you are cancelling it because you can get better returns elsewhere, then it is important to do your sum and take into account the time value of money and opportunity cost. (As Mr Hariz has mentioned above) It is also good to have an endowment or a “guaranteed product” instrument in your financial portfolio. It is not always about which give instrument gives the best return in the portfolio. Rather is is always about managing your risks and returns. Strategise it to your needs and goals. 👍🏻

Investments

Savings

Insurance

Endowment Policies

How about you speak to an IFA and ask for a comparison? The answer will be different based on age, budget, type of endowment, length of premiums. If you'd like a comparison, you can message me. I represent almost all the insurers in Singapore.

Endowment Policies

Insurance

Savings

Yes correct. Both are universal life as their base investment is in bonds. Other than time period, please read through the product summary / brochure for exclusion and Conditions since they do not pay interest for special conditions.

Savings

Endowment Policies

Financial Planners

Investments

Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Answered on 06 Oct 2018
What is your purpose for signing into an endowment plan in the first place? Saving up for a big ticket item down the road? Retirement? Or just a form of "forced" savings? Personally, I won't recommend getting into endowments or any retail wealth management products out there, including ILPs/unit trusts/mutual funds. They cost too much to put in and you get paltry returns in the end. As alternatives to endowment plans, considering buying into Singapore Savings Bonds, or leaving a standing instruction to "force transfer" a sum of money each month into an account giving higher interest, such as POSB's SAYE, CIMB's FastSaver, or Citibank's Maxi Gain. You can also buy into a bond ETF through POSB's Invest Saver programme each month at minimally S$100. Hope this helps.
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