Asked on 27 Nov 2018
Haha behind the scenes, we actually met Singapore Life before to learn about their company. They are actually one of the most heavily funded Financial 'startups' here in this region and claim to be launching new products to the newer generation of users.
Much like another company which we know as FWD.
On the regulatory front, they check all the boxes... have the relevant licences and also have in fact the financial muscle to have bought over all of ZURICH's Life insurer's customers. So on a risk front, these are mitigated. Plus also, you are looking at a time frame of 3 years, so that is actually a smaller risk to take on, versus like a 100 year whole life plan.
Do take note however! Singapore Life Credit Rating: BBB
Standard & Poor’s “BBB” (long-term local currency issuer credit rating and insurer financial strength rating in January 2018). Singapore Life Pte. Ltd. is committed to offering a full suite of innovative and digitally executed insurance and financial solutions to customers to fulfill their protection, savings and investment needs.
Compared to AIA for exampe who has a credit rating of: AA- under the same Standard & Poor's rating agency :) Important point to consider.
It would also seem that many of these smaller insurers are using endowments as a way to buff up their coffers... Much like FWD, Etiqa and now Singapore Life.
This will be suitable for those who are very risk adverse. Personally I won't touch it as returns don't make sense for me.
I am not sure that people want to invest in endowment plans especialy in Singapore, where 17 years old boy/girl have good knowledge of stocks investment.
People in Singapore are more active toward financial planing as compare other countries. They know that how to make money with low risk of capital in short term period.
Don't you think that 3 percent of return is very less for 3 years investment.