Asked on 24 Dec 2018
I have been researching alot on endowment plans- currently having one but it comes with an insurance component. I am looking one where I can put my PB in when I get it in March, but without the insurance component.
Otherwise, is there any other way to park it besides SSB or SRS?
You may wish to consider a few places.
1) Resale / Traded Endowments in S$ (Singapore dollars). Make sure Absolute Assignment is made ( and assigned to you) when the person sell you their endowment policy. Pray that the person doesn't die, and it matures for higher internal rate of return.
2) Why do you think of parking in SRS? SRS is a tax relief tool more than investment. But for SRS, there a few things you can invest in, including SSB in feb 2019.
3) All endowments have insurance component, so its the same for the tranches offered by FWD and NTUC. however, their insurance component is really low, hence very little (negligible) cost of insurance, hence their rates can beat fixed deposit. You lose liquidity for the time required to be put inside only.
All endowment plans have insurance. It's why it's called such. And also, it needs to have insurance so that insurers can sell it.