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Best Endowment Plan in Singapore
The Manulife ReadyBuilder (II) stands out as best endowment plan in Singapore, especially if you’re often looking for a neat balance between flexibility, par fund returns, and features that make sense for your situation.
It offers a policy term that goes all the way up to age 120, which essentially means you’re looking at a plan that can last for life.
You can choose how you want to pay your premiums too.
Go for a single premium if you have a lump sum ready, or opt for a 5, 10, 15, or even 20-year payment period if you prefer something more manageable.
Its capital guarantee kicks in at the end of the 15th year, giving you the reassurance that what you’ve put in will be safeguarded.
Over the last 15 years (from 2009 to 2023), it achieved a solid 4.89% return, making it the second highest amongst insurers.
Look closer at the 3, 5, and 10-year performances and you’ll see even better results, topping the charts at 1.33%, 4.80%, and 4.17% respectively.
That’s pretty neat, especially if you’re eyeing something stable for the medium term.
However, there’s a cost to these strong returns.
Its average Total Expense Ratio (TER) over the past 8 years sits at 3.63%, which is considerably higher than the industry average of 2.49%.
This means that your actual returns might not be as high as you’d expect.
Insurance coverage is straightforward – it includes death, total and permanent disability (TPD), and terminal illness (TI).
You can also enhance your protection with riders that waive premiums if death, TPD, or critical illness (CI) strikes. This ensures that your policy policy continues to grow, even when you’re in difficult times.
You can withdraw bonuses, or make partial surrenders in chunks of at least $500 – giving you some breathing room if you need access to funds along the way.
You also have a retrenchment benefit where you get 50% of your annual premiums back if you’re out of a job for 30 consecutive days.
There’s also a premium freeze option, allowing you to pause your premium payments for a year (up to 2 times) if your finances get tight.
Changing the life assured is possible too, which can help with long-term legacy planning.
Overall, the Manulife ReadyBuilder (II) checks many boxes.
Sure, it’s not the cheapest in terms of expenses, but its versatility, strong historical returns, and wide range of features more than make up for it.
Best Endowment Plan with Highest Guaranteed Returns
If guaranteed returns are your top priority when choosing an endowment plan, then the Singlife Choice Saver might be right up your alley.
After working closely with readers at Dollar Bureau, I’ve noticed that many people want something stable and predictable, especially if they’re planning for a child’s education or other big milestones.
In these cases, having high guaranteed returns can mean sleeping better at night, knowing that no matter what happens, you won’t end up with less than you started with.
The Singlife Choice Saver offers a flexible policy term from anywhere between 10 to 25 years or go all the way up to age 99.
Premium payment terms are also varied, letting you pick from 5, 10, 12, 15, 18, 20, or 25 years.
At maturity, your capital is guaranteed.
That makes it clear that the core promise stands strong: you’ll at least get back what you’ve put in, if not more.
According to the benefit illustrations provided by Singlife, Singlife Choice Saver comes out top for guaranteed returns.
However, its par fund performance over the last 15 years wasn’t the best.
Clocking in at 3.89%, it’s sitting at the lower end of the spectrum (ranked 7th out of 9) compared to other participating funds.
The average expense ratio of 2.45% is slightly below the industry average of 2.49%, which is somewhat comforting, but still on the higher side.
What this might mean is that while your guaranteed portion looks great, the bonuses you receive may not be as impressive as with other plans.
You can still access your funds through withdrawals if the need arises.
There’s also a retrenchment benefit that allows you to defer premiums for up to 12 months if you’ve been unemployed for 3 consecutive months.
A policy loan is also available, and you can change the life assured up to 3 times.
For those who value that peace of mind above all else, the Singlife Choice Saver is worth considering.
Best Endowment Plan with Highest Potential Returns
The endowment plan with the highest potential returns is the AIA Smart Wealth Builder Series.
To identify this, I first wanted to look beyond just raw par fund performance.
It’s tempting to focus only on those headline numbers, but it’s not quite that simple.
Your returns are often nudged down by total expense ratios (TER), and the smoothing of bonuses also chips away at the final figure you actually get.
In other words, that impressive percentage you see on paper might not match what eventually ends up in your hands.
So I took the 15-year par fund returns and subtracted the average TER over the past 8 years.
This approach isn’t perfect – since I’m double-counting the investment expenses, it likely understates the final returns slightly.
Still, it gives a more realistic look at what you might genuinely pocket, smoothing out any odd spikes and offering a fairer comparison.
Under this method, Tokio Marine scored highest at 3.37% p.a., but I chose to remove them from the selection as they’ve removed par plans a couple of years back and have just re-added some at the time of writing.
I wanted to choose a policy that’s more reliable (and so that I don’t have to keep updating this post as often, sorry not sorry), so that left AIA as the next best performer at 3.24% p.a., making their Smart Wealth Builder Series my pick.
This plan not only offers strong adjusted returns, but also gives you room to breathe.
You can stretch your policy term to age 125, and you have flexible premium terms – single premium, or spread them out over 5, 10, 15, or 20 years.
Plus, you can fund it with SRS or cash.
The capital guarantee at the end of the 15th, 20th, or 25th year adds a layer of reassurance, and you’re free to make withdrawals if needed.
In short, while it’s never just about the headline par fund numbers, once you factor in what actually counts – expenses, bonus smoothing, and long-term consistency – the AIA Smart Wealth Builder Series steps forward as the best endowment plan for higher potential returns.
Most Flexible Endowment Plan
If you want an endowment plan that’s flexible to fit your life’s changes, the NTUC Income Gro Saver Flex Pro is definitely worth a look.
It gives you a wide range of options for how long you want your policy to last – 10, 15, 20, 25, or 30 years – or stretch it all the way till age 120.
Premiums can also be paid in different ways – single premium or spread over 5, 10, 15, 20, 25, or even 30 years.
Plus, you can pay using your SRS funds.
You get your payouts at maturity, which is pretty standard.
Withdrawals are allowed too, but only after 2 years, and if your premium term is more than 5 years.
This means you have some breathing room if you need some cash before the end.
Looking at the numbers, the par fund has performed at 4.11% over 15 years (2009-2023), putting it squarely in the middle of the pack at 6th out of 9. Not the best, not the worst.
But here’s where it stands out: its Total Expense Ratio (TER) is consistently the lowest, below 1% each year.
This matters because your bonuses are given after all expenses are taken into account.
A high return on paper is less impressive if a large chunk is eaten away by fees.
With a low TER, you’ll likely keep more of what the par fund earns, which is exactly what you want.
There are other thoughtful features too.
A retrenchment benefit means you can pause your premiums for 6 months if you’re laid off and out of work for at least 3 months.
If you still can’t find a job, you can defer another 6 months.
You can also add premium waivers for cancer, ensuring you stay protected if life throws you a curveball.
A TPD waiver after age 70, the option to appoint a second life assured, and a guaranteed insurability option at certain life events are all extras that show this plan is built with changing life circumstances in mind.
If flexibility is what you need, this plan might just hit the sweet spot.
Best Single Premium Endowment Plan
If you’ve got a lump sum of cash just sitting around and you’d rather let it grow quietly over the years, the Prudential PRUWealth Plus (SGD) might catch your eye.
It’s designed for those who can afford a single premium upfront, although you can also spread it out with 5, 10, 15, or 20-year payment terms.
You can fund it with SRS too, which is handy if you’re looking to optimise your retirement savings.
With a policy term going up to age 130, this plan literally looks beyond a lifetime, making it a strong candidate for those who value long-term wealth building.
By the end of the 10th, 15th, or 19th year (depending on how you set your premium terms), you get a capital guarantee.
That means you can go to sleep each night knowing that what you’ve put in is locked down.
Over the past 15 years, the par fund performance stacks up at a geometric return of 5.73% (from 2009 to 2023), which is pretty solid.
On the flip side, the average TER comes in at 2.67%, above the industry average.
The retrenchment benefit is another thoughtful touch – if you’re out of work for 30 days, you get a portion of your premiums back, depending on the type of policy you’ve chosen (single premium or regular premium).
And if your family circumstances change, the option to appoint a second life assured or even switch the life assured can come in handy.
Prudential PRUWealth Plus (SGD) is a strong contender if you have a lump sum you’re comfortable locking away.
Its blend of flexibility, long-term perspective, and decent returns might just be the right recipe for those who value a well-structured, single premium endowment plan.
Best SRS Endowment Plan
For those of you looking to give your SRS funds a steady boost, the NTUC Income Gro Saver Flex Pro shines as a dependable option.
You can choose how long you want your policy to last – 10, 15, 20, 25, 30 years or even until you’re 120 – and you can opt for a single premium or spread out payments over 5, 10, 15, 20, 25, or 30 years.
This means you have the flexibility to match your investment horizon with your own comfort level.
If you need some cash along the way, you can make withdrawals after 2 years if you’ve chosen a premium term above 5 years – though it will go back to your SRS account, which you will incur fees to withdraw it after (charged by SRS, not NTUC Income).
Over the past 15 years (2009-2023), the par fund has chalked up a geometric return of 4.11% – not the highest, but stable and respectable.
What stands out is its average Total Expense Ratio (TER) of 0.90%, the lowest across all insurers for the past 8 years.
This low TER means less is eaten up by costs, giving you a clearer path to growing your savings.
But beyond numbers, this plan comes with some thoughtful perks.
Lose your job?
You get a 6-month breather from paying premiums, extendable for another 6 if you still can’t find work.
Worried about critical illnesses like cancer or total and permanent disability (TPD) after 70?
There are premium waivers you can add on.
You can even appoint a second life assured or exercise a guaranteed insurability option at certain life events, which adds a personal touch that not all plans offer.
Overall, if you’re looking to grow your SRS funds in a controlled, low-cost environment, the NTUC Income Gro Saver Flex Pro ticks the right boxes.
Best Short-Term Endowment Plan
Short-term endowment plans in Singapore tend to sell out quickly, and availability can be unpredictable.
Because of this, choosing the best plan often comes down to timing – if you find one that meets your needs, it’s usually wise to act fast.
That said, if we had to highlight an option, the NTUC Income Gro Capital Ease takes the top spot.
This plan offers a well-balanced 3-year policy term, making it an attractive choice for those looking for stable returns without committing for too long.
The last tranche provided a solid 4.2% p.a. return, one of the most competitive rates in the market.
The minimum investment starts at $10,000, with a generous maximum premium of $500,000, offering flexibility for different financial situations.
Beyond returns, it also provides protection of 105% of the single premium for Death & Total and Permanent Disability (TPD) – a stronger safety net than many similar plans.
Plus, it’s SRS-approved, allowing you to maximise your Supplementary Retirement Scheme (SRS) funds.
While short-term endowment plans often get snapped up quickly, NTUC Income Gro Capital Ease stands out as a compelling choice with its blend of competitive returns, manageable commitment, strong protection, and SRS eligibility.
If you find it available, it’s definitely worth considering.
By now, you should have a clearer idea of what’s on the market and how these plans differ.
But remember, no single policy ticks all the boxes for everyone.
Your situation is unique.
What works perfectly for someone else might not be the best fit for you.
That’s why it’s always a good idea to get a second opinion.
Don’t hesitate to talk to an unbiased financial advisor if you’re unsure, as they’ll help break down the fine print and tailor a solution that truly fits your goals.
If you feel confused or have questions specific to your circumstances, we can connect you with one of our trusted financial advisor partners – completely free of charge.
It’s a simple, no-pressure way to ensure you’re making the right choice, especially when your future is on the line.
