One of the best endowment plans in Singapore is China Life SaveReward plan. This endowment plan is so popular that the SGD Tranche has been fully subscribed in a short period after it was launched.
If you are looking for a short-term endowment plan to grow your savings without taking risks, you have two options:
- China Life SaveReward RMB Plan
- LIC Endowment Plan Invest Smart (SGD)
I will give you more details about the two plans in this post. If you are looking for longer-term retirement plans, you can refer the 3 best retirement plan options here.
Option 1: China Life SaveReward RMB Plan
SaveReward RMB plan is very similar to China Life SaveReward SGD plan. You have 3 Guarantees:
- Guaranteed capital
- Guaranteed yield
- Guaranteed acceptance
In fact, you earn a higher interest of 3.62% when you save in RMB.
The reason that RMB tranche is still available shows Singaporeans’ lack of understanding of RMB asset. Many Singaporeans are not familiar with China’s RMB products because there wasn’t many available in the past.
In my last month’s update on global investing momentum, China’s bull run may just about to start. And with the opening of China’s launch of Bond Connect, the demand of RMB may see a significant increase in the future.
If you think RMB will appreciate more than SGD in 5 years’ time, not only will you get a higher interest from China Life’s SaveReward product, you will gain from currency appreciation too.
Option 2: LIC Endowment Plan Invest Smart
If you are only comfortable with SGD asset. You can consider LIC’s new endowment plan offer “Invest Smart”.
In a nutshell, Invest Smart offers
- A non-Participating plan: all the returns are guaranteed
- 5 Years maturity with 2 years premium payment
- Guaranteed interest
- 25% for annual premium from $50,000 to $100,000
- 15% or annual premium between $20,000 to $40,000
Here is how it works:
|Total Premium for 2 years||
|Maturity value after 5 years||
|Simple interest on premium paid||
Then the next question that you may have is, who is LIC?
LIC is Life Insurance Corporation (Singapore) Pte Ltd. It is the life insurer from India and newly set up in Singapore. In terms of credentials, LIC is
- Largest Life Insurer in India
- Largest domestic financial investor in India
- Fully owned by the Government of India
- Operates in 14 countries worldwide
- With a customer base of over 3 billion
- With total Assets of S$510.63 Billion in 2016
- For consecutive years it has been ranked as the “Most Trusted Service Brand” in surveys in India
This product is also protected under Singapore’s Policy Owners Protection scheme, so you have one more layer of safety when it comes to the word “guaranteed”.
If you are an investor who is looking for short-term endowment plan with a guaranteed return which is higher than bank’s interest, you have two good options now.
- China Life SaveReward RMB with 3.62% interest
- LIC’s Invest Smart with up to 2.25% interest
If you know other better plans, please leave your comment below.
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