When it comes to saving for retirement, not everybody has the risk appetite to go for an investment portfolio. If you prefer a saving scheme which gives you a predictable return and allows you to sleep well, you should consider endowment plan.
Endowment policies are offered by an insurance company and can be used to help you meet a financial goal over a fixed term. For example, you can use an endowment plan to save for your retirement or your children’s education. The return of the policy is backed by the insurer and they are all under Policy Owners Protection Scheme if the insurer collapse.
Today, I will help you compare the best endowment plans currently offered in Singapore.
To be candid, traditional endowment plans are lousy. Many endowment policies mature after a long time such as 15 or 20 years and the guaranteed cash values you get back may even be less than the sum of the premiums paid.
But the new generation of endowment plans is better with shorter term (3 to 5 years) and higher guaranteed return, which may be used as an alternative of fixed deposits.
Such offers are often popular among people who have large savings idling in the bank and they are usually offered by “tranches” and fully subscribed in a short term. Below is the list of them which are still available now.
- NTUC Capital Plus (CPN34) (Update: closed on 3 Nov 2017)
- China Life SaveReward 101 RMB (Update: closed on 31 Oct 2017)
- LIC Invest Smart (Update: closed on 20 October 2017)
- FWD Endowment Plan
The table below will help you compare the product’s features, returns and risks.
What do you think about these plans? Simply leave your comment below. If you find this information is valuable, feel free to click the share button below and let others know…