NTUC Income Gro Capital Ease [Fully Subscribed]
If you need help saving some cash for a large purchase like a house or a car in the near future, the NTUC Income Gro Capital Ease offers guaranteed returns.
Minimum premium: S$5,000. You can make a cash payment via PayNow QR, e-GIRO (for DBS/POSB customers only) or use your SRS funds.
Policy term: Three years. During this term, you are covered for death or total permanent disability (TPD) during this time.
Maturity benefit: With a guaranteed yield at maturity of 1.48% p.a. at the end of the three years, you will enjoy a guaranteed maturity benefit of 104.51% of the single premium.
Assuming you apply for the maximum single premium of S$200,000, you will be able to receive a lump sum of S$209,020 at the end of three years.
Current tranche: The current tranche is closed. Visit NTUC Income for updates.
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Manulife Goal 12
Manulife Goal 12 is a short-term endowment plan is ideal for those seeking a short commitment period of just two years.
Minimum premium: Single premium of S$10,000, payable via cash or SRS.
Policy term: Two years. During this term, you are insured 101% of the premium in the event of your death.
Maturity benefit: Apart from the guaranteed 5.07% return upon maturity, you may also enjoy a potential maturity bonus of 0.61% of your single premium.
For example, if you bought a S$10,000 policy, you can cash out up to S$10,507 with a non-guaranteed maturity bonus of $61 upon maturity of your endowment plan, bringing your potential total maturity value to S$10,568.
Current tranche: This Manulife endowment plan is currently open. As there is no online application available, you need to speak to a financial consultant or apply at a bank branch.
AIA Wealth Savvy [Tranche Closed]
AIA Wealth Savvy is an endowment plan that provides guaranteed returns of 3% p.a. in 3 years.
Interest rate: 3% p.a. *guaranteed interest
Premium term: Single premium
Policy term: 3 years
Withdrawal/payouts: The endowment ends in 3 years, after which you will receive 100% of your capital plus returns earned
Minimum investment: S$5,000, up to a cap of S$30,000 per transaction. Apply online with cash or Supplementary Retirement Scheme (SRS).
*Guaranteed returns and capital guaranteed are only applicable if the policy is held to maturity. A surrender charge will be applicable, and the surrender value payable will be less than total premiums paid in the event of early termination before maturity.
What this plan is good for: One of the most accessible plans with a fairly affordable investment starting point of S$5,000, the AIA Wealth Savvy endowment offers a high guaranteed return of up to 3% p.a. upon maturity.
Another plus point is the possibility of earning up to 4.25% p.a. when you purchase any qualifying plan) under AIA #Wealth Savvy Bundle Campaign (2.0) 2022 on or before 30 November 2022. Your guaranteed returns for AIA #Wealth Savvy will be boosted to 4.25% p.a. at the end of year 3.
You can also get this plan without having to undergo any medical examinations. All online applications for the basic plan will be accepted.
Lastly, this policy features coverage against death. Your family will receive an additional 10% payout of the insured amount on top of the death benefit should an accidental death happen in the first policy year. The death benefit is the higher of the insured amount (the single premium paid at the policy inception) or the cash value.
Available till 30 November 2022 or when the tranche closes for subscription.
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Should you get a short-term endowment plan?
Endowment plans can be attractive short term alternatives to savings accounts, fixed deposits and even Singapore Savings Bonds (SSBs).
In today’s climate, the options for growing your money risk-free are extremely limited. With endowment plans, your capital is guaranteed, the returns beat that of banks, and you also get a little bit of insurance coverage as a bonus.
But, however short the policy term, an endowment plan is still a commitment. Only park cash that you absolutely will not need in the next two or three years here. Should you need to terminate your policy early, you may lose money.
There are also trade-offs to locking up your funds. If interest rates were to rise within the next few years, you might not be able to take advantage of a good savings or fixed deposit promotion since your cash is parked in the endowment plan.
What you need to know about mid/ long-term endowment plans
- Regular premiums: You contribute regular premiums towards the endowment plan for the entire premium term.
- Interest rates/returns: Interest rates are an indication of how much you can expect at the end of the policy term. However, the returns are not guaranteed and this means that the actual benefits payable will vary based on the market conditions and future performance of the participating fund.
- Long term commitment: Unlike short-term endowment plans that mature in two to three years, long-term endowment plans can have a policy term that ranges between 10 to 25 years.
- Early termination: Terminating the policy before it matures could be costly as the surrender value, if any, could be zero or less than the total premiums paid.
Best mid/long-term endowment plans in Singapore
Here’s a look at five of the best mid/long-term endowment plans available.
Singlife Choice Saver
With seven premium payment terms to choose from, Singlife Choice Saver offers great flexibility to reach your goals while guaranteeing 100% of your capital if you hold the policy till maturity.
- Interest rate: Up to 4.25% p.a. non-guaranteed returns
- Premium term: 5, 10, 12, 15, 18, 20 or 25 years
- Policy term: 10 to 25 years, or cover to 99 years old
- Withdrawal/payouts: Get 100% capital guaranteed when you hold the plan till maturity, with no early cash withdrawal option.
What this plan is good for: This plan offers a wide range of premium and policy terms as reflected above. It also guarantees that your capital will be returned 100% in the form of a lump sum payout when you hold the policy till maturity.
You also stand to earn potential bonuses upon maturity, though this is not guaranteed. Application for this policy does not require medical check-ups.
You can also choose from a range of add-on riders to have a savings plan that also protects you against critical illness and more. What's also unique to this plan is the option to change the Life Assured of the policy to suit you or your family's needs.
What are the downsides to this plan: The maturity bonuses are not guaranteed and there is no option for you to withdraw the cash early.
GREAT Prime Rewards 3
For those who are planning to receive additional income for retirement, the Great Eastern GREAT Prime Rewards 3 is an attractive option. In additional to the annual payout after year 5 of the policy term, this endowment plan also pays a lump-sum benefit upon completion of the policy term, death, terminal illness, or total and permanent disability. You can choose either cash or your CPF Supplementary Retirement Scheme (SRS) funds to purchase the policy.
Premium term: Single premium
Policy term: 20 years
Accumulation period: Optional, 3 or 5 years
Withdrawal/payouts: Choose between 10, 15, 17, or 20 years
What this plan is good for: Retirement income. This plan offers guaranteed payouts each year and you can choose from four payout terms – 10, 15, 17, or 20 years. Your capital is guaranteed after 5 years, and you can choose to let it accumulate more interest for 3 or 5 years.
These payouts will be provided annually, and may be used for a variety of your needs, such as to supplement your income or your retirement funds.
What are the downsides to this plan: It does not cover pre-existing conditions, critical illnesses, and hospitalisation. The cost of entry is on the slightly higher side, starting from S$10,000. Returns are not guaranteed and may change according to market conditions.
Tokio Marine Nest Egg (GIO Cashback)
The Tokio Marine Nest Egg (GIO Cashback) is an endowment plan that offers guaranteed acceptance and guaranteed capital if held to maturity.
- Interest rate: Up to 3.8% p.a. non-guaranteed returns
- Premium term: 5, 10, 15 or 20 years
- Policy term: 10, 15, 20 or 25 years
- Withdrawal/payouts: Flexibility to withdraw the guaranteed yearly payouts from the second policy year for either eight or 10 years, or reinvest to earn interest. You also enjoy 100% capital guaranteed when you hold the plan till maturity.
What this plan is good for: This plan offers a wide range of premium payment terms, including a short five-year premium term. While providing guaranteed yearly cash benefits from the second policy year, it also provides some form of liquidity, giving you the option to withdraw this yearly cash benefit or reinvest it to earn interest.
Your capital is also guaranteed upon policy maturity, ensuring that every dollar you contribute as premiums will be returned. You will also be able to purchase this plan without requiring any medical underwriting.
Lastly, this plan features coverage against death. In the event that this occurs, a lump sum of 105% of the total annual premiums paid, accumulated reversionary bonuses, and any accumulated guaranteed yearly cash benefits plus interest will be paid out.
What are the downsides to this plan: Addition of riders such as Cancer Waiver Rider or (Enhanced) Payer Benefit Rider may require you to undergo full underwriting.
If you are looking for cancer insurance, you can also check out these best cancer insurance plans in Singapore.
Should you get a mid/long-term endowment plan?
A long-term endowment plan can be an option for those that are looking to set aside money for their child’s education, or to prepare for their retirement. These endowment plans are also great for those that require discipline to help them save money for the future.
However, do keep in mind that long-term endowment plans require years of commitment, regularly paying the premiums for the entire premium term. You could lose some of your capital should you choose to terminate the policy before maturity.
As an alternative way to grow your wealth, you can also consider starting your investment journey with a regular savings plan, or using one of the many robo-advisors in Singapore.
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Disclaimer: Protected up to specified limits by SDIC. As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid. You should seek advice from a financial adviser before deciding to purchase the policy. If you choose not to seek advice, you should consider if the policy is suitable for you. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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