In a low-interest-rate environment, your money might be yearning for better growth opportunities. But if you are not comfortable with investing. A short term endowment plan could be a good option. Short term endowment plans are issued by the insurance companies and I like their simple, no-trick and guaranteed return.

After Aviva launched MySecureSaver, their first three-year endowment plan, two years ago, they will be launching the third tranche, MySecureSaver III. This time, the yield is 1.8% per annum. 1.8% is not fantastic, but it is the best you can get if you don’t want to take investment risks. After all, the latest Singapore Savings Bond (SSB) (tranche SBOCT21 GX21100W) only offers an average return of 1.39% over 10 years.

What is MySecureSaver?

Aviva’s MySecureSaver is a single premium, non-participating savings plan. This means that all returns are guaranteed. The plan offers:

  • Guaranteed yield of 1.8% per annum
  • Guaranteed Issuance – No need to undergo a medical check-up to apply
  • Death Benefit – Pays 105% of single premium in the event of Life Assured’s death
  • You get back 105.5% of what you put in at the end of 3 years
  • Your Capital is guaranteed from the start of the 3rd policy year

The minimum premium is S$20,000. You can purchase the plan using Cash or Supplementary Retirement Scheme (SRS) funds.

The guaranteed yield of 1.8% per annum upon maturity is based on the Life Assured surviving until the end of the policy term with no surrender or claims made during the entire policy term. If you surrender the policy earlier you may suffer losses.

Please note that there are no yearly payouts for this plan. The Guaranteed Maturity Benefit (equivalent to 105.5% of single premium) will be paid at the end of 3 years. An illustration of the product is as below.

Source: MySecureSaver III Factsheet

How to buy this plan

You should be able to purchase it from your own Financial Adviser when the product is launched. If you prefer to deal with Aviva directly, you also can register your interest at Aviva’s website (This is NOT a referral link).

The eligible entry age (next birthday) for this plan depends on the payment mode:

  • Cash: Age 1 to 75
  • Supplementary Retirement Scheme (SRS): Age 19 to 75

This policy is underwritten by Aviva Ltd. MySecureSaver III is available on a first-come, first-served basis and is only available for purchase while the acceptance tranche is still open. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Update: the product was launched on 23 September and fully subscribed.

If you like such types of products, subscribe to my mailing list below or my Telegram channel so you will be notified of similar offers in the future.

About the Author

Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
The views and opinions expressed in this article are those of the author. This does not reflect the official position of any agency, organization, employer or company. Refer to full disclaimers here.

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