Are you looking for the best endowment plans in Singapore?
With so many options available, choosing the right one that suits your needs can be overwhelming.
But don’t worry, we’ve done the research for you and compiled a list of the top endowment plans available in Singapore.
Whether you’re saving for your retirement, your child’s education, or just want to build a financial safety net, endowment plans can be a great option.
They provide you with a combination of insurance coverage and investment returns, ensuring that you can grow your wealth while protecting your loved ones.
Keep reading.
Comparison of the Best Endowment Plans in Singapore
| NTUC Income Gro Cash Flex Pro | NTUC Income Gro Saver Flex Pro | NTUC Income Gro Power Saver Pro | AIA Smart Wealth Builder Series | AIA Smart Flexi Growth | Prudential PRUActive Saver III | Prudential PRUWealth Plus (SGD) | Prudential PRUActive Cash | Singlife Choice Saver | Singlife Steadypay Saver | Great Eastern GREAT Flexi Goal | Great Eastern GREAT Wealth Multiplier III | China Taiping i-Saver8 | China Taiping i-WealthSaver | Manulife GrowSecure | Manulife ReadyBuilder (II) | Tokio Marine TM Nest Egg II (Cashback 8/10) | |
| Policy Term (Years) | 10, 15, 20, 25, 30, or till age 120 (options dependent on premium term) | 10, 15, 20, 25, 30, or till age 120 (options dependent on premium term) | 12 years | Up to 125 years old | 5, 10, 15 to 30 years | 10 to 30 years | Up to 130 years old | 15 to 25 years | 10 to 25 years, or up to 99 years old | 12, 15, 18, or 25 years | 15 or 20 years | Up to 120 years old | 8 years | 10, 15, 20 or 25 years | 16 or 18 years | Up to 120 years old | 10 or 12 years |
| Premium Term (Years) | 5, 10, 15, 20, 25, 30 years | Single Premium, 5, 10, 15, 20, 25, 30 years | 3 years | Single Premium, 5, 10, 15, 20 years | 15 to 30 years | Single Premium or between 5 to 30 years | Single Premium, 5, 10, 15, or 20 years | Single Premium, 5, 10, 15, 20, or 25 years | 5, 10, 12, 15, 18, 20, or 25 years | 12, 15, 18, or 25 years | 15 or 20 years | Single Premium, 5, 10, or 15 years | 3 years | Single Premium, 5, 10, 15 or 20 years | 5, 8, or 10 years | Single Premium, 5, 10, 15 or 20 years | 2 years |
| SRS Payment Available? | No | Yes | No | Yes | No | No | Yes | No | No | No | No | Yes | No | No | No | No | No |
| Capital Guaranteed? | Yes, only upon maturity | No | Yes, only upon maturity | Yes, at the end of 15th, 20th, or 25th year, depending on premium terms | Yes, only upon maturity | Yes, only upon maturity | Yes, at the end of 10th, 15th, or 19th year, depending on premium terms | No | Yes, only upon maturity | No | Yes, only upon maturity | Yes, at the end of 10th,15th, or 20th year, depending on premium terms | Yes, only upon maturity | Yes, 5 years after the end of your premium terms | Yes, only upon maturity | Yes, at the end of 15th year | Yes, only upon maturity |
| When Payouts Commence | – At maturity – Monthly; 3% of your sum assured and a non-guaranteed cash bonus, starting from the 3rd policy year | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity – Yearly; 3% of your policy value, minimum $1,000 per withdrawal, starting from the 3rd policy year | – At maturity | – At maturity – Yearly; 5% of your sum assured, starting from the 3rd policy year | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity | – At maturity – 8% or 10% yearly, starting from the 3rd policy year |
| Withdrawals allowed? | No | Yes, after 2 years for premium terms above 5 years | No | Yes | No | No | No | Yes | Yes | Yes, only your bonuses and if you reinvested your cash payouts, minimum $1,000 | No | No | No | No | No | Yes, for bonuses, and partial surrenders with a minimum $500 | No |
| Protection | Death & TI | Death & TI | Death & TI | Death, TPD, & TI | Death | Death | Death | Death | Death, Accidental Death, & TI | Death, Accidental Death, & TI | Death, TPD, & TI | Death, TPD, & TI | Death | Death | Death, Accidental Death, TI, and TPD Waiver | Death, TPD, & TI | Death |
| Riders available | – Retrenchment Benefit – Cancer Premium Waiver | – Retrenchment Benefit – Cancer Premium Waiver | – Cancer Premium Waiver | – ECI Premium Waiver | – ECI Premium Waiver – CI Premium Waiver – ECI/CI Premium Waiver for your children | – ECI Premium Waiver – CI Premium Waiver – ECI/CI Premium Waiver for your spouse & children | – ECI Premium Waiver – CI Premium Waiver – Death, total & permanent disability, CI Waivers for your loved ones | – ECI Premium Waiver – CI Premium Waiver – Death, total & permanent disability, CI Premium Waivers for your loved ones | Undisclosed | – Cancer Premium Waiver – CI Premium Waiver – Boost sum assured | Undisclosed | Undisclosed | None | None | Undisclosed | – Death, total & permanent disability, CI Premium Waivers | None |
| Other Notable Features | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option to add premium waivers for cancer – TPD Waiver after 70 years old – Appoint second life assured – Guaranteed insurability option at selected life events | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option to add premium waivers for cancer – TPD Waiver after 70 years old – Appoint second life assured – Guaranteed insurability option at selected life events | – TPD waiver before 70 years old – Option to add premium waivers for cancer | – Appoint second life assured | – | – Policy Loan – Automatic Premum Loan – Surgical & Nursing Loan | – TPD waiver before 70 years old – 2 years of premium deferment after 2 policy years – 1 year premium waiver if a family member passes on – Retrenchment benefit where you get 50% of a year’s premiums if you remain unemployed for 30 days or just before you turn 65 on regular premium policies. Single premium policies get 10% of single premium if retrenched within first 5 policy years and before 65 years old, or remain unemployed for 30 days. – Appoint second life assured – Change life assured | – Policy Loan – Automatic Premum Loan – Surgical & Nursing Loan | – Retrenchment benefit where your premiums are deferred for up to 12 months if you are retrenched for 3 consecutive months, between 19 to 75 years old – Policy Loan – Change of life assured up to 3x | – Policy Loan – Option to 5x your basic annual premium due to death, TI, & TPD | – | – Appoint second life assured | – At maturity | – Appoint second life assured | – Premium freeze for a year, up to 2 times, depending on premium terms – Change of life assured | – Retrenchment benefit where you will receive 50% of your annual premiums if you are unemployed for 30 consecutive days – Premium freeze for a year, up to 2 times, depending on premium terms – Change of life assured | – |
Best Endowment Plan in Singapore
The NTUC Income Gro Saver Flex Pro is the best endowment plan in Singapore due to it standing out for its versatility and comprehensive approach to financial planning.
NTUC Income Gro Saver Flex Pro
This plan is designed to cater to a wide range of financial goals and life stages, making it an attractive option for individuals seeking a reliable and flexible savings solution.
One of the most significant features of the NTUC Income Gro Saver Flex Pro is its array of policy term options.
You can choose from terms of 10, 15, 20, 25, 30 years, or even opt for coverage that extends until age 120, depending on their premium term selection.
This flexibility allows you to align the plan with your specific financial objectives, whether it’s saving for retirement, accumulating wealth for future endeavours, or planning for a child’s education.
The ability to select a term that resonates with one’s personal financial journey makes this plan exceptionally adaptable.
In terms of premium payments, the plan offers both single premium and regular payment options, spread over various durations.
This feature is particularly beneficial as it accommodates different financial capacities and preferences.
The capital guarantee upon maturity is a key aspect of the NTUC Income Gro Saver Flex Pro.
This guarantee provides a layer of security, ensuring that the principal amount invested is safeguarded.
In an unpredictable economic climate, such a feature is invaluable, offering peace of mind to those who are cautious about market volatilities and seek a stable savings avenue.
The plan’s compatibility with the Supplementary Retirement Scheme (SRS) is another advantageous feature.
It allows you to integrate your retirement planning with tax-efficient savings strategies, enhancing the overall efficiency of your long-term financial planning.
Not forgetting that NTUC Income’s participating funds outperformed almost every other insurance company across 3, 5, 10, and 15-year periods.
Should the future performance of NTUC Income’s participating funds continue performing well, you can expect a pretty decent maturity benefit.
Beyond its savings component, the NTUC Income Gro Saver Flex Pro also offers essential protection coverage, including death and terminal illness.
This coverage acts as a financial safety net, ensuring that in the event of unforeseen circumstances, the policyholder’s family is not left vulnerable.
Enhancing the plan’s appeal are additional benefits such as retrenchment benefits and the option to add premium waivers for cancer.
These features provide added security and flexibility, adapting the plan to the dynamic nature of life and employment scenarios.
The ability to appoint a second life assured further increases the plan’s adaptability, making it relevant and beneficial across various life stages and circumstances.
With everything so well-balanced and while having many features stand out amongst other endowment plans, there’s no wonder why the NTUC Income Gro Saver Flex Pro is the best endowment plan in Singapore.
Best Endowment Plan with Highest Guaranteed Returns
The Singlife Choice Saver stands out as an exceptional choice as the best endowment plan with the highest guaranteed returns.
Singlife Choice Saver
This plan combines attractive guaranteed returns with flexibility and comprehensive coverage, making it an ideal choice for discerning investors in Singapore.
The Singlife Choice Saver is designed with a keen focus on providing guaranteed returns, a feature that resonates strongly with investors who prioritise certainty and stability in their financial planning.
In a financial landscape often characterised by volatility and unpredictability, the assurance of guaranteed returns is comforting and a prudent financial move.
This plan offers a solid foundation for those who prefer a more conservative investment approach, ensuring that their financial goals are met with minimal risk.
One of the key strengths of the Singlife Choice Saver is its adaptability to various financial goals and life stages.
The plan offers policy terms ranging from 10 to 25 years, or even up to 99 years old, providing flexibility to cater to both short-term and long-term financial objectives.
Whether you are planning for a significant life event in the near future or looking towards long-term goals such as retirement or legacy planning, this plan can be tailored to suit your specific needs.
In addition to its focus on guaranteed returns, the Singlife Choice Saver also offers the benefit of capital protection upon maturity.
This feature ensures that your principal investment is safeguarded, offering peace of mind and a level of security that is highly valued in any investment.
For those cautious about market risks, this plan provides a safe and secure avenue for growing their savings.
The plan’s flexibility is further enhanced by its diverse premium payment options, including terms of 5, 10, 12, 15, 18, 20, or 25 years.
This variety allows you to choose a payment schedule that aligns with your financial capacity, making it easier to manage your investment without straining your current financial resources.
Moreover, the Singlife Choice Saver encompasses comprehensive protection features, including death and accidental death coverage.
This dual benefit of savings and protection ensures that while you are focused on building your wealth, you are also securing a financial safety net for your family in case of unforeseen circumstances.
The Singlife Choice Saver is not just an endowment plan; it’s a strategic financial tool that offers a balanced approach to savings and protection.
By choosing this plan, you are opting for a solution that provides both growth and security, ensuring that your financial future is well taken care of.
With its combination of guaranteed returns, capital protection, and flexible terms, the Singlife Choice Saver stands as a testament to Singlife’s commitment to delivering value and peace of mind to its policyholders.
Best Endowment Plan with Highest Total Returns
Selecting the best endowment plan for the highest total potential returns involves a careful analysis of various factors, including geometric returns and expense ratios.
Here’s a table comparing the par funds of the major insurers in Singapore:
After reviewing the available options, the Manulife ReadyBuilder (II) emerges as a particularly strong candidate in this category.
Manulife ReadyBuilder (II)
This plan’s impressive fund performance, as indicated by its geometric returns, combined with its reasonable expense ratios, positions it as an excellent choice for those seeking to maximise their total returns from an endowment plan.
The Manulife ReadyBuilder (II) has demonstrated a robust track record in terms of geometric returns.
These returns are a critical measure of the plan’s ability to deliver substantial growth over time, making it an attractive option for investors focused on maximising their total returns.
The historical performance of the Manulife ReadyBuilder (II) suggests that it has consistently provided favourable returns, a key consideration for anyone looking to optimise their investment outcomes.
In evaluating the total returns of an endowment plan, the expense ratios play a significant role as they can impact the net returns of an investment.
The Manulife ReadyBuilder (II) effectively balances high returns and manageable expense ratios.
This equilibrium ensures that the returns you accrue are not unduly eroded by excessive costs, thereby maximising your investment’s efficiency.
The plan’s design caters to a long-term investment horizon, which is ideally suited to the nature of endowment plans.
This long-term perspective allows your investment to harness the power of compounding, potentially leading to enhanced total returns over the policy’s duration.
Such an approach benefits those planning for future financial goals like retirement or legacy planning.
Apart from its potential for high returns, the Manulife ReadyBuilder (II) also offers comprehensive coverage, including protection against death and terminal illness.
This dual benefit of growth and protection ensures that while your investment aims for high returns, it also secures a financial safety net for your loved ones.
Furthermore, the plan is characterised by its flexibility in terms of premium payment terms and policy terms.
This adaptability allows you to customise the plan according to your individual financial goals and capacity, making it a seamless addition to your overall financial strategy.
In summary, choosing the Manulife ReadyBuilder (II) means opting for a plan that is geared towards maximising your returns and provides the assurance and reliability of a well-established financial product.
Its combination of strong geometric returns, reasonable expense ratios, and comprehensive coverage makes it an outstanding choice for anyone seeking an endowment plan that delivers high total returns while also offering the peace of mind of a secure and well-rounded financial solution.
Most Flexible Endowment Plan
The Manulife ReadyBuilder (II) is the most flexible endowment plan, as it reflects a keen understanding of the varying and dynamic financial needs individuals often face.
Manulife ReadyBuilder (II)
This plan stands out for its exceptional adaptability, making it a prime choice for those who value flexibility in their financial planning.
The Manulife ReadyBuilder (II) is distinguished by its wide array of policy term options.
With terms extending up to 120 years, it caters to a diverse range of financial planning goals.
Whether your focus is on medium-term financial objectives or long-term plans like retirement or legacy building, this plan offers the versatility to align with your specific timeline.
Flexibility in premium payment is another hallmark of the ReadyBuilder (II).
Manulife recognises that financial circumstances vary greatly, so they designed this plan to accommodate different payment capacities.
You have the option to choose from single premium payments or regular payments over various durations, such as 5, 10, 15, or 20 years.
This flexibility ensures that your investment in the plan is in harmony with both your current financial situation and your future aspirations.
Beyond its role as a savings tool, the Manulife ReadyBuilder (II) also provides comprehensive coverage options, including protection against death and terminal illness.
This dual benefit means that while you are focused on accumulating wealth, you also have the assurance of a safety net for your family, a crucial aspect of any robust financial plan.
One of the standout features of the ReadyBuilder (II) is its withdrawal flexibility, which is generally lacking in endowment plans.
The plan allows for partial withdrawals, giving you access to your funds under certain conditions.
This feature is particularly valuable for meeting unexpected financial needs, offering a level of liquidity that is rare in traditional endowment plans.
The option to add various riders further enhances the plan’s adaptability.
These riders can provide additional protection and benefits, allowing you to tailor the plan even more closely to your individual needs and circumstances.
In addition to its focus on flexibility, the Manulife ReadyBuilder (II) also holds the potential for attractive returns, adding to its appeal as a well-rounded financial instrument.
This potential for growth, combined with the plan’s adaptable nature, makes it an ideal choice for those looking to grow their savings while enjoying the benefits of a plan that can adjust to life’s unpredictable changes.
The Manulife ReadyBuilder (II) represents more than just an endowment plan; it is a versatile and adaptable financial solution, designed to evolve with your changing needs and goals.
Its blend of flexible policy terms, diverse premium payment options, and comprehensive coverage positions it as a top choice for anyone seeking an endowment plan that offers both growth potential and the flexibility to adapt to the various phases of life.
Best Single Premium Endowment Plan
The Prudential PRUWealth Plus (SGD) is the best single premium endowment plan.
This plan is designed for those who prefer a one-time investment, combining the ease of a single premium with the potential for substantial growth and comprehensive coverage.
Prudential PRUWealth Plus (SGD)
| NTUC Income Gro Saver Flex Pro | AIA Smart Wealth Builder Series | Prudential PRUActive Saver III | Prudential PRUWealth Plus (SGD) | Prudential PRUActive Cash | Great Eastern GREAT Wealth Multiplier III | China Taiping i-WealthSaver | Manulife ReadyBuilder (II) | |
| Policy Term (Years) | 10, 15, 20, 25, 30, or till age 120 (options dependent on premium term) | Up to 125 years old | 10 to 30 years | Up to 130 years old | 15 to 25 years | Up to 120 years old | 10, 15, 20 or 25 years | Up to 120 years old |
| Premium Term (Years) | Single Premium, 5, 10, 15, 20, 25, 30 years | Single Premium, 5, 10, 15, 20 years | Single Premium or between 5 to 30 years | Single Premium, 5, 10, 15, or 20 years | Single Premium, 5, 10, 15, 20, or 25 years | Single Premium, 5, 10, or 15 years | Single Premium, 5, 10, 15 or 20 years | Single Premium, 5, 10, 15 or 20 years |
| SRS Payment Available? | Yes | Yes | No | Yes | No | Yes | No | No |
| Capital Guaranteed? | No | Yes, at the end of 15th, 20th, or 25th year, depending on premium terms | Yes, only upon policy maturity | Yes, at the end of 10th, 15th, or 19th year, depending on premium terms | No | Yes, at the end of 10th,15th, or 20th year, depending on premium terms | Yes, 5 years after the end of your premium terms | Yes, at the end of 15th year |
| When Payouts Commence | – At maturity | – At maturity | – At maturity | – At maturity | – At policy maturity – Yearly; 3% of your policy value, minimum $1,000 per withdrawal, starting from the 3rd policy year | – At maturity | – At maturity | – At maturity |
| Withdrawals allowed? | Yes, after 2 years for premium terms above 5 years | Yes | No | No | Yes | No | No | Yes, for bonuses, and partial surrenders with a minimum $500 |
| Protection | Death & terminal illness (TI) | Death, total & permanent disability, & TI | Death | Death | Death | Death, total & permanent disability, & TI | Death | Death, total & permanent disability, & TI |
| Riders available | – Retrenchment Benefit – Cancer Premium Waiver | – ECI Premium Waiver | – ECI Premium Waiver – CI Premium Waiver – ECI/CI Premium Waiver for your spouse & children | – ECI Premium Waiver – CI Premium Waiver – Death, total & permanent disability, CI Waivers for your loved ones | – ECI Premium Waiver – CI Premium Waiver – Death, total & permanent disability, CI Premium Waivers for your loved ones | Undisclosed | None | – Death, total & permanent disability, CI Premium Waivers |
| Other Notable Features | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option to add premium waivers for cancer – Total & permanent disability Waiver after 70 years old – Appoint second life assured – Guaranteed insurability option at selected life events | – Appoint second life assured | – Policy Loan – Automatic Premum Loan – Surgical & Nursing Loan | – TPD waiver before 70 years old – 2 years of premium deferment after 2 policy years – 1 year premium waiver if a family member passes on – Retrenchment benefit where you get 50% of a year’s premiums if you remain unemployed for 30 days or just before you turn 65 on regular premium policies. Single premium policies get 10% of single premium if retrenched within first 5 policy years and before 65 years old, or remain unemployed for 30 days. – Appoint second life assured – Change life assured | – Policy Loan – Automatic Premum Loan – Surgical & Nursing Loan | – Appoint second life assured | – Appoint second life assured | – Retrenchment benefit where you will receive 50% of your annual premiums if you are unemployed for 30 consecutive days – Premium freeze for a year, up to 2 times, depending on premium terms – Change of life assured |
The Prudential PRUWealth Plus (SGD) is tailored for individuals looking for an efficient and straightforward way to save a lump sum of money.
The single premium payment structure is ideal if you have accumulated savings that you wish to grow over time without the need for ongoing premium commitments.
This approach is particularly appealing for its convenience and simplicity, catering to those who prefer a one-time investment decision.
A significant advantage of the PRUWealth Plus (SGD) is its policy term, which extends up to 130 years old.
This long-term horizon is beneficial for wealth accumulation, allowing your investment to potentially benefit from compounding growth over an extended period.
Such a long duration offers flexibility in terms of financial planning, making it suitable for various goals, whether it’s retirement planning, legacy building, or other long-term objectives.
In addition to its investment potential, the PRUWealth Plus (SGD) also includes protection coverage.
This plan typically provides death and terminal illness benefits, adding a layer of financial security.
While the plan’s primary goal is to grow your single premium, the protection element ensures a safety net for your beneficiaries, offering peace of mind alongside the opportunity for financial growth.
If you’re retrenched for 30 continuous days in your first 5 policy years, PRUWealth Plus (SGD)’s retrenchment benefits give single premium policyholders 10% of their single premium back – a key deciding factor in our decision to award it the best single premium endowment plan.
However, I have to say that the potential for high returns on the PRUWealth Plus (SGD) is something you might have to forgo.
It’s 15-year annualised returns ranked 7/9 at 2.64% only. So if you’re looking for better returns from your endowment and willing to forgo some benefits exclusive to single premium policyholders, consider the Manulife ReadyBuilder (II) or the NTUC Income Gro Cash Flex Pro instead.
The Prudential PRUWealth Plus (SGD) still stands out as the best single premium endowment plan.
Its blend of a one-time investment, potential for growth, and comprehensive protection coverage makes it a well-rounded and attractive financial solution.
By choosing the PRUWealth Plus (SGD), you are opting for a plan that not only seeks to enhance your lump sum investment but also provides the ease and convenience associated with a single premium plan
Best Supplementary Retirement Scheme (SRS) Endowment Plan
The best SRS endowment plan in Singapore is the NTUC Income Gro Saver Flex Pro as it stands out for its strong geometric returns, particularly over the long term, making it an excellent choice for maximising retirement savings through the Supplementary Retirement Scheme (SRS).
NTUC Income Gro Saver Flex Pro
| NTUC Income Gro Saver Flex Pro | AIA Smart Wealth Builder Series | Prudential PRUWealth Plus (SGD) | Great Eastern GREAT Wealth Multiplier III | |
| Policy Term (Years) | 10, 15, 20, 25, 30, or till age 120 (options dependent on premium term) | Up to 125 years old | Up to 130 years old | Up to 120 years old |
| Premium Term (Years) | Single Premium, 5, 10, 15, 20, 25, 30 years | Single Premium, 5, 10, 15, 20 years | Single Premium, 5, 10, 15, or 20 years | Single Premium, 5, 10, or 15 years |
| SRS Payment Available? | Yes | Yes | Yes | Yes |
| Capital Guaranteed? | No | Yes, at the end of 15th, 20th, or 25th year, depending on premium terms | Yes, at the end of 10th, 15th, or 19th year, depending on premium terms | Yes, at the end of 10th,15th, or 20th year, depending on premium terms |
| When Payouts Commence | – At maturity | – At maturity | – At maturity | – At maturity |
| Withdrawals allowed? | Yes, after 2 years for premium terms above 5 years | Yes | No | No |
| Protection | Death & TI | Death, TPD, & TI | Death | Death, TPD, & TI |
| Riders available | – Retrenchment Benefit – Cancer Premium Waiver | – ECI Premium Waiver | – ECI Premium Waiver – CI Premium Waiver – Death, TPD, CI Waivers for your loved ones | Undisclosed |
| Other Notable Features | – Retrenchment benefit where you don’t have to pay premiums for 6 months if you’re retrenched and unemployed for minimally 3 months. Further deferred for another 6 months if you can’t find another job – Option to add premium waivers for cancer – TPD Waiver after 70 years old – Appoint second life assured – Guaranteed insurability option at selected life events | – Appoint second life assured | – TPD waiver before 70 years old – 2 years of premium deferment after 2 policy years – 1 year premium waiver if a family member passes on – Retrenchment benefit where you get 50% of a year’s premiums if you remain unemployed for 30 days or just before you turn 65 on regular premium policies. Single premium policies get 10% of single premium if retrenched within first 5 policy years and before 65 years old, or remain unemployed for 30 days. – Appoint second life assured – Change life assured | – Appoint second life assured |
The NTUC Income Gro Saver Flex Pro’s notable performance in annualised returns, especially over the 10 and 15-year periods, indicates its consistent ability to deliver robust growth.
For individuals utilising the SRS for retirement planning, this plan offers an attractive combination of growth potential and financial security.
The long-term performance is particularly relevant for retirement planning, as it provides insight into how the plan might perform over an extended period, aligning well with the typical retirement savings horizon.
In addition to its potential for high returns, the NTUC Income Gro Saver Flex Pro also offers flexibility in terms of policy terms.
This flexibility is beneficial for tailoring the plan to individual retirement goals and timelines, whether you are nearing retirement or have a longer time horizon.
Moreover, the plan includes essential protection features, providing a safety net in the form of death and terminal illness coverage.
While the primary focus of the NTUC Income Gro Saver Flex Pro is on growing your SRS investment, these protection elements ensure that there is also a layer of financial security for your beneficiaries.
With everything required from an SRS endowment plan, the Gro Saver Flex Pro excels in all areas and there’s no wonder it’s hands down the best SRS endowment plan.
Best Endowment Plan for Legacy Planning
We think that the Prudential PRUWealth Plus (SGD) is the best endowment plan for legacy planning due to its extended policy term, which can go up to 130 years.
Prudential PRUWealth Plus (SGD)
This long duration is crucial for legacy planning as it aligns with the need to grow and preserve wealth over an extended period, often spanning multiple generations.
The ability to accumulate wealth over such a long term allows for a substantial financial legacy to be built, ensuring that future generations can benefit significantly from the foresight of the policyholder.
2 particularly important features of the PRUWealth Plus (SGD) that enhance its suitability for legacy planning are the options to appoint a second life assured and to change the life assured.
These features provide unparalleled flexibility in managing the policy across different life stages and circumstances, which is vital for legacy planning.
Appointing a Second Life Assured: This feature allows the policyholder to include another individual, typically a family member, as a secondary insured person on the policy. This is particularly beneficial for legacy planning as it ensures the policy’s continuity beyond the original policyholder’s lifespan. By appointing a second life assured, you can ensure that the benefits of the plan can be seamlessly transferred to the next generation without the need for initiating a new policy.
Changing the Life Assured: The ability to change the life assured offers the flexibility to adapt the policy to changing family dynamics or circumstances. For instance, if the original life assured passes away or if there’s a need to shift the policy’s focus to another family member, this feature allows for a smooth transition. This adaptability is crucial in legacy planning, where the objective is to maintain the policy’s relevance and benefits across different generations and varying family needs.
In addition to these features, the PRUWealth Plus (SGD) also offers the potential for attractive returns, balancing growth and security, which is essential in building a financial legacy.
The plan’s structure, which includes protection against death and terminal illness, adds an extra layer of security, ensuring that the financial legacy is protected.
In summary, the Prudential PRUWealth Plus (SGD) is an excellent choice for legacy planning due to its long policy term, the potential for wealth accumulation, and particularly its features that allow for appointing and changing the life assured.
These aspects make it a flexible and effective tool for creating and preserving a financial legacy that can support future generations.
Best Endowment Plan for Child Education Planning
The Singlife Choice Saver is the best endowment plan for child education planning as it is tailored to provide a combination of growth potential, flexibility, and security, making it an ideal choice for parents and guardians looking to invest in their child’s educational future.
Singlife Choice Saver
The Singlife Choice Saver is particularly suited for education planning due to several of its key features:
Flexible Policy Terms: The plan offers a range of policy terms, from 10 to 25 years, or even up to 99 years old. This flexibility allows you to align the maturity of the plan with key educational milestones, such as your child’s entry into primary school, university, or even postgraduate studies. Selecting a term that coincides with these milestones ensures that funds are available when they are most needed.
Potential for Attractive Returns: In our post comparing the best child education endowment plan, the Singlife Choice Saver has the potential to bring you the highest guaranteed and non-guaranteed returns. This growth is crucial in an education plan, as it can help keep pace with the rising costs of education. The plan’s potential for attractive returns means that you can build a substantial education fund over time, easing the financial burden when it comes to supporting your child’s educational aspirations.
Capital Protection Upon Maturity: The plan offers capital protection upon maturity, which is a significant feature of education planning. This protection ensures that your principal investment is safeguarded, providing a level of security and peace of mind. Knowing that your investment is protected allows you to plan your child’s education more confidently.
Liquidity Options: The Singlife Choice Saver provides options for partial withdrawals under certain conditions. This feature offers flexibility and access to funds if unexpected needs or opportunities arise before the policy matures. For instance, if your child needs additional resources for educational purposes before the end of the policy term, this feature can be invaluable.
Comprehensive Protection: In addition to its savings component, the plan includes coverage for death and accidental death. This dual benefit ensures that while you are focused on building an education fund, you also have a safety net in place for your family.
The Singlife Choice Saver is an excellent choice for planning for your child’s education.
Its flexible policy terms, potential for growth, capital protection, and liquidity options make it a comprehensive and adaptable solution for parents and guardians committed to investing in their child’s educational future.
By choosing this plan, you are taking a significant step towards securing your child’s academic journey and opening doors to a world of opportunities.
Best Short-Term Endowment Plan
Selecting the best short-term endowment plan involves considering various factors such as policy terms, premium amounts, returns, and additional benefits.
| Insurers | Tiq 3-Year Endowment Plan | Singlife Secure Saver Series | GREAT SP Series | HSBC Life Online Endowment | NTUC Income Gro Capital Ease | Manulife Goal / DBS SavvyEndowment |
| Policy Term (Years) | 3 years | 2 years | 2 years | 3 years | 3 years | 2 years |
| Minimum Single Premium | $5,000 | $20,000 | $10,000 | $10,000 | $20,000 | $5,000 |
| Maximum Single Premium | $1,000,000 | $500,000 | Undisclosed, but brochure illustrates $100,000 single premium | $100,000 | $500,000 | Undisclosed |
| Returns (p.a) | 3.56% | 3.80% | 3.50% | 3.90% | 4.20% | 3.4% + up to 0.31% non-guaranteed |
| Protection | Death, 101% of single premium | Death, 105% of single premium | Death & TPD, 105% of single premium | Death & TI, 110% of single premium | Death & TPD, 105% of single premium | Death, 101% of single premium |
| SRS Accepted? | No | Yes | No | No | Yes | Yes |
However, given the nature of short-term endowment plans in Singapore, where availability is often limited and demand is high, the choice can sometimes be more about seizing the opportunity than potential returns.
What’s typically available, and considering the rush to apply due to limited tranches, any of the listed plans could be viable, depending on individual circumstances and preferences.
If you’re looking for a plan and find one available, it’s often advisable to consider applying for it, especially if the plan’s features align with your financial goals and requirements.
However, if we were to highlight one plan based on its overall features and suitability for a wide range of investors, the Tiq 3-Year Endowment Plan stands out.
Tiq 3-Year Endowment Plan
This plan offers a balance of a reasonable policy term of 3 years, a low minimum premium of $5,000 (lowest in Singapore), the highest maximum premium of $1,000,000, and a competitive return rate.
Additionally, the protection offered at 101% of the single premium for death provides a basic safety net, which is a crucial aspect of any financial product.
The Tiq 3-Year Endowment Plan’s 3-year term strikes a good balance between short-term commitment and the potential for growth, making it suitable for those who are looking for a quick financial boost without locking their funds away for an extended period.
While the choice of a short-term plan in Singapore may often be dictated by availability, the Tiq 3-Year Endowment Plan offers a compelling mix of features that can meet the needs of many looking for such an investment.
Its combination of a manageable policy term, reasonable premium, competitive returns, and basic protection coverage makes it an attractive option for those fortunate enough to find it available.
Things to note when choosing an endowment plan
Policy Term
Some endowment plans require you to park aside your money for a specified period of time, known as the policy term.
This holding period should be considered carefully because if you were to surrender your plan early, you might incur losses and may not even get your initial capital back.
Once the policy matures, most endowments usually guarantee your capital at least.
More details on your estimated maturity value can be found in the policy illustration, varying across companies and products.
Some plans offer a policy term in multiples of 5, while others let you select from a range of years giving you the flexibility to choose the specific age you want your plan to mature.
If you’re saving up for a specific goal like children’s education, house upgrade, starting your own business, etc., consider selecting a plan with a policy term that ends closest to when you would need the money to maximise your returns.
Apart from fixed maturity endowments, there are also whole-life endowments that only mature when you’re above 100 years old in the market.
These plans are usually designed for those looking to leave an estate for future generations.
Long- vs Short-Term Policy
In the past, endowment plans were long-term with minimum commitment periods of 10 years or more.
But over the years, insurers have been launching short-term endowment plans with a term of 3 years or less.
If you’ve no immediate need for your money but don’t want to lock your money for the long term, these short-term plans are worth considering, as they enjoy interest rates that are generally higher than the bank.
Do note that these short-term endowments are usually launched on an ad-hoc basis with limited quantities, so the fastest fingers first.
Opting for a plan with a shorter term does come with a trade-off – which is that the returns may not be as attractive as a long-term plan.
This is due to the concept of compound interest, where you earn interest on your interest.
With this, generally the longer you hold an investment, the better your returns.
Premiums
Premium Amount
Endowment plans make your money work harder for you.
But it’s not just about throwing all your cash on hand into an endowment product because as mentioned, an early surrender could lead to losses.
The rule of thumb is to ensure that you’ve set aside emergency savings, usually 3 – 6 months of your annual income before you start investing.
Remember to select a premium amount that is within your means.
If you’re unable to finance your premiums, your plan will lapse, which could mean losing the premiums you’ve paid thus far.
Whether your budget is $100 or $100,000, there is a plan for everyone.
Different products have different maximum and minimum premiums, so do take note of this.
Premium Term – Regular vs Single Premium
If you have a lump sum of money readily available, you can choose to pay your premiums in a single premium, and just leave your money to roll and accumulate.
But fret not, even if you don’t have a large sum of money set aside, you can still opt for regular premium plans, where you pay your premiums for a certain number of years.
This premium term can be as long as your policy term or shorter.
With a regular premium plan, you might also have the option to choose how often you’d like to pay premiums in a year.
Premium frequency options range from annual, biannually, quarterly, or monthly.
If you find yourself living paycheck to paycheck, consider investing in a regular premium product, as a form of forced savings.
While you enjoy life in the current moment, it’s good to pay your future self so that you can enjoy in the future as well.
Regardless of the premium term, the earlier you fully pay up your premiums, the longer time that your money has to grow.
Protection
Another name for endowment plans are insurance savings plans, and as their name suggests, there is an element of protection in endowments.
Do note that the level of protection offered by endowments is not very high and is usually a percentage of the total premiums paid or the surrender value.
This level of coverage is insufficient if it is your only life insurance policy.
However, it is good if you are more focused on investment, but still want some coverage to complement your existing coverage.
If you’re looking for a protection plan, a whole life insurance or term life insurance plan might be better suited for your needs rather than an endowment plan.
Liquidity
Cash Payouts
For those who want to grow their monies, but also want to ensure some liquidity for small indulgences or to help you pay off your liabilities, some endowments come with a feature that provides you with cash payouts.
These payouts are usually a small percentage of your plan’s face value, often ranging between 3 – 5%.
The face value is usually calculated based on a percentage of the total premiums you’re expected to pay and varies across plans.
Payouts are usually paid annually, but some plans might offer a monthly option.
These plans usually allow you to choose whether you want to receive the cash payouts or leave them in the plan to accumulate, letting you start or stop the payouts as and when you require.
There is a give and take if you do choose a plan with this feature, and that is that your returns may not be as high as a plan that does not provide payouts.
If you’re looking for cash payouts, although some endowment plans allow for this, they’re not designed for it.
You can consider getting an annuity policy instead if cash payouts are your thing.
Premium Loans
In the event that you really need the money urgently, but do not want to surrender your plan, some plans allow you to withdraw some money from your plan and take a premium loan.
Doing so might affect the long-term value of your plan as you’re reducing the value inside your plan, meaning that the interest you earn would not be as high.
Most insurers will also charge interest on the loan that you take from your policy, which would need to be paid back.
If not paid back, this interest will be deducted from your maturity payout at the end of your policy term.
If the interest incurred exceeds the surrender value in your plan, it will terminate and you would not get back anything, and lose your capital.
So, if you do take a premium loan, do monitor it to minimise any possible losses.
Partial Withdrawal / Surrender
In rare cases, some plans offer you the option to partially surrender some of the cash value in your plan, without having to pay it back or incur an interest.
Be careful not to mix up this option with the premium loan option.
If you’re unsure, it’s always good to consult your financial advisor. If you don’t have one, we can always link you up with an advisor.
A partial surrender will also affect the plan’s maturity value, so do consider all your options before you choose to exercise this option.
Expected Returns
Participating Fund Performance
Insurance savings plans take part in the participating fund of the insurer. This fund invests in various instruments and assets which differ across insurers.
Your premiums are pooled together and invested into this fund.
Depending on the performance of the fund, bonuses would be declared and added to your plan, which makes up a portion of your returns.
Looking at an insurer’s par fund performance will give you a rough gauge of how likely they are to actualise the returns illustrated in the policy document, or perform better.
However, do also note that past performance is never an indicator of future performance.
Guaranteed vs Non-Guaranteed Returns
In the illustration provided by the insurer, the cash value is split into 2 – a guaranteed and non-guaranteed portion.
The guaranteed return is the minimum amount the insurer promises to return you if you surrender your plan or when your plan matures.
The non-guaranteed portion provides an estimate of any additional returns that you might get from your plan but there is no full guarantee that you’ll receive this.
It can be affected by the participating fund performance, expenses incurred, and the claims and surrender experience of all participating products under the insurer.
It’s recommended to take note of the guaranteed returns.
At maturity, you’d want your guaranteed returns to at least be able to beat your maturity payout.
After all, there is an opportunity cost if you choose to lock your money in an endowment instead of another investment instrument such as an investment-linked policy.
If your guaranteed returns can’t beat your capital, your capital is at risk if the plan’s non-guaranteed returns are not realised.
A good rule of thumb is to check the policy/benefit illustration and check which year you’ll “breakeven” if any.
The breakeven year is determined by when your guaranteed returns are equal to your total premiums paid.
Others
Supplementary Benefits
Premium Waivers
Most plans allow you to add on premium waivers in the event of disability or critical illness at a nominal fee.
It’s generally recommended to add these waivers to prevent your plan from lapsing in the event that you’re unable to work and fund your premiums due to disability or illness.
Not only do you lose your capital if your plan lapses, but you lose time as well.
Personal Accident
You might also be able to add personal accident riders to your plan as well.
These riders usually cover medical bills and traditional Chinese medicine bills incurred due to accidents.
Some might even cover certain illnesses like food poisoning and dengue fever.
For more details, refer to the policy document or ask your financial advisor.
Death/TPD/TI
What’s Next?
Just like buying a life insurance policy, selecting the right endowment plan is a decision that requires careful consideration of various factors, as there are many nuances in everyone’s financial situation.
It’s important to remember that not every policy will be the best fit for every individual.
Each person’s financial goals, risk tolerance, and time horizon are unique, and these should be the guiding factors in choosing an endowment plan.
Given the complexity and long-term nature of these financial decisions, it’s always wise to seek a second opinion.
An external perspective can provide valuable insights and help you evaluate whether a particular policy truly aligns with your financial objectives.
This step is crucial in ensuring that you make an informed and confident decision.
If you ever find yourself unsure about which endowment plan to choose, we strongly recommend consulting with an unbiased financial advisor for financial advice.
They can help you navigate the myriad of options available and tailor a financial solution that best suits your individual needs.
For those who would like further guidance, we offer the opportunity to speak with one of our MAS-licensed financial advisors.
Our team of experts is dedicated to providing personalised advice, helping you understand your options and making choices that align with your long-term financial goals.
Remember, the right advice can make a significant difference in your financial journey, and we are here to support you every step of the way.
