10 Best Long & Short Term Endowment Plans in Singapore (2020)

Endowment plans are life insurance policies that combine structured savings with protection. They’re usually thought of more as insurance savings plans rather than life insurance.

Typically, you pay either a single lump-sum premium or pay according to a monthly payment schedule. The insurer then grows your money such that you receive the agreed-upon payout upon policy maturity. Note that the returns can either be guaranteed or non-guaranteed, or a combination of both.

Most endowment plans provide some form of insurance coverage, i.e. a payout in the event of the policyholder’s death. However, the life coverage component is usually low, so one should not solely depend on an endowment plan for protection purposes. 

 

10 best endowment plans in Singapore (2020)

Type

Policy term

Best endowment plans

Short-term 

1 to 5 years

GREAT SP Series 2, Manulife Goal 7, Tiq 3-Year Endowment Plan

Mid-term

6 to 12 years

Etiqa eEASY Save V, NTUC Income Gro Goal Saver

Long-term

Up to 25 years

AXA EarlySaver Plus, Tokio Marine Nest Egg, AIA Smart Wealth Builder, Aviva MyWealth Plan

There are plenty of endowment plans available in Singapore. The best way to narrow down the options is to consider how long your savings horizon is, and then decide if you want a short-, mid- or long-term endowment plan.

As you can see from the table above, short-term endowment plans can be as short as just one year, whereas long-term endowment plans can have a term of up to 25 years to life. 

There are always new endowment plans on the market, so if you want the most up-to-date recommendations, get in touch with PolicyPal.

How can we help?

 

Best short-term endowment plans in Singapore

Endowment plan

Premium term

Policy term

Crediting rate

GREAT SP Series 2

Single premium

1 year

1.05% p.a. guaranteed

Manulife Goal 7

Single premium

3 years

1.39% p.a. fixed income

Tiq 3-Year Endowment Plan

Single premium

3 years

1.88% p.a. guaranteed

Short-term endowment plans are great for those looking for somewhere to park their savings for a short-term goal. For example, if you just balloted for a BTO flat, an endowment plan could be one place to set aside the cash you need for the down payment.

Short-term endowment plans are usually single-premium, i.e. you pay the premium in one lump sum upfront. Because of the short commitment period and relatively simple mechanics, most people are comfortable with applying online. However, if you do not understand the product, do speak to us to find out more.

GREAT SP Series 2
Great Eastern’s GREAT SP Series 2 is a limited-time-only endowment plan with a super short policy term of just one year, with a guaranteed return of 1.05% p.a. The minimum amount for its single premium depends on your profile, so do get in touch with us to find out more.

Manulife Goal 7
Among the Manulife endowment plans, Manulife Goal 7 is one of the best short-term endowment plans we found. It has a minimum single premium of $10,000 (payable by cash or SRS) and the policy term is three years. You’re looking at returns of up to 4.23% over three years with 1.39% p.a. guaranteed for the first two years. 

Tiq 3-Year Endowment Plan
Etiqa’s Tiq 3-Year Endowment Plan is another single-premium, three-year endowment plan. The minimum premium is $10,000 as well, and it has a guaranteed crediting rate of 1.88% p.a. for three years.

Looking for more options? Find more recommendations for short-term endowment plans in Singapore through PolicyPal.

 

Best mid-term endowment plans in Singapore

Endowment plan

Premium term

Policy term

Crediting rate

Etiqa eEASY Save V

Single premium or 2 years

6 years

2.68% p.a. guaranteed

NTUC Income Gro Goal Saver

3 years

10 years

Up to 4.75% p.a.

       

With policy terms ranging from six to 12 years, mid-term endowment plans require a longer commitment than short-term endowment plans. Your funds are locked in for a longer time, but the payoff is that the crediting rate is usually higher.

Speak to us to find out more about which type of endowment plans suit you best, and get personalized recommendations after a free financial review.

policypal Etiqa eeasy save v promotion

Etiqa eEASY Save V
Etiqa’s eEASY Save V is a six-year endowment plan that you can sign up for online through PolicyPal. The return of 2.68% p.a. is guaranteed as long as you hold it to maturity. From now until 30 Sep 2020, you can get PolicyPal credit rebates or a free staycation when you sign up for an eEASY Save V plan, depending on the size of your premium. You can read more about eEASY Save V and PolicyPal’s giveaway here.

NTUC Income Gro Goal Saver
There is a wide range of NTUC Income endowment plans, but we would highlight the NTUC Income Gro Goal Saver as the premium payment term is only three years. Thereafter, you wait seven years for the plan to mature, and the returns are up to 4.75% p.a. non-guaranteed.

Get more mid-term endowment plan recommendations when you speak to us.

 

Best long-term endowment plans in Singapore

Endowment plan

Premium term

Policy term

Crediting rate

       

Tokio Marine Nest Egg (GIO Cashback)

5 to 20 years

10 to 25 years

Up to 3.5% p.a. 

Aviva MyWealth Plan

5 or 10 years

10 to 25 years

Up to 2.35% p.a. guaranteed

AIA Smart Wealth Builder

Single premium, 5, 10, 15 or 20 years

Up to age 125

Up to 4.75% p.a.

Long-term endowment plans typically stretch from 10 to 25 years, and are most popular among young parents looking for a structured way to save up for their child’s university education.

These endowment plans require regular periodic premium payments throughout the duration of the premium term, which can be up to 20 years. This forces you to put aside a small amount of money every month for expensive milestones ahead.

Bear in mind that you have to stay committed to the policy throughout the policy term; there is a penalty for early termination of your endowment plan. If you surrender your policy early, you may even get nothing back from your policy. 

For this reason, we do not compare long-term endowment plans side-by-side but recommend a personalized advice session with PolicyPal first.

 

Best single-premium endowment plans in Singapore

Endowment plan

Premium term

Policy term

Crediting rate

GREAT SP Series 2

Single premium

1 year

1.05% p.a. guaranteed

Manulife Goal 7

Single premium

3 years

1.39% p.a. fixed income

Tiq 3-Year Endowment Plan

Single premium

3 years

1.88% p.a. guaranteed

Etiqa eEASY Save V

Single premium or 2 years

6 years

2.68% p.a. guaranteed

AIA Smart Wealth Builder

Single premium or 5 to 20 years

Up to age 125

Up to 4.75% p.a.

Single-premium endowment plans are the opposite of structured, long-term savings plans. Instead of requiring you to save incrementally for a long period, they just require one lump sum payment upfront.

This option is not for everyone, but if you are looking for a place to park a lump sum of cash without locking yourself into future premium payments, single-premium endowment plans may be it. Bear in mind that you still have to commit to the policy term.

Speak to us for more personalized recommendations for single-premium endowment plans.

 

Why get an endowment plan when you can invest?

The returns of an endowment plan are usually lower than open market stocks or ETFs, but they come at a lower risk compared to them.

Unlike investing in the stock market, endowment plans generally come with some form of guaranteed returns per annum. 

When you pay your insurance premiums regularly till the plan’s maturity, you will receive the guaranteed returns. In addition, most endowment plans guarantee your capital upon maturity. As long as you hold it to term, you should not lose money.

In contrast, when you invest, neither your returns nor capital are not guaranteed.

In addition, endowment plans come with some insurance coverage (which is paid using part of your premiums). If you are looking for pure returns without the added insurance benefits, it might be better to seek other forms of investments. 

 

Who should get an endowment plan?

Endowment plans are very popular among parents who wish to save and invest for their children’s education. They allow parents to systemically put aside money to hit a certain target amount upon policy maturity.

In addition, endowment plans provide additional protection which guarantees the payout even in unfortunate events like the parent’s untimely death. 

Endowment plans may also be suitable for meeting other goals in life, such as hitting a target retirement nest egg. There are also short-term endowment plans for more immediate goals like home down payments or weddings.

If you have an investment portfolio, you may also want to consider an endowment plan to balance out the risks.

 

PolicyPal promotion: 10% commission rebate via PayNow

Compare, buy and manage your endowment plans on PolicyPal — and earn cash rebates while you’re at it!

 

Arrange a free teleconsulting service with PolicyPal

Because endowment plans are not one-size-fits-all products, we strongly recommend speaking to us before you commit to a long-term plan of any sort. Our professional advisers can assess your budget and needs holistically, and give you personalised recommendations.

PolicyPal offers all our members a free financial portfolio review. This review will help you better understand how to create a suitable financial plan for you and your family. We will analyse life insurance products from over 20 insurers and present you solutions that are tailor-made to address your concerns. 

Our advisers will be more than happy to help you understand any of these insurance policies: 

  • Health Insurance
  • Critical Illness Insurance
  • Endowment/Savings Insurance 
  • Personal Accident Insurance
  • Term/Whole Life Insurance

To get in touch, you can WhatsApp us at 87500688 and let us know your preferred date and time for the appointment. Alternatively, leave your details below and we will contact you to help you set up an appointment. 

If you would like to know more about a specific insurance product you can also let us know your preference. This is so that we can be better prepared during the appointment to present you with a comparison table if needed.

Submit your interest now!

The teleconsultation can be done through a Whatsapp phone call or video call. We would recommend using Zoom as it is a free video-conferencing app that you can download for clear audio and video consulting on your computer or your phone. 

 

PolicyPal claims & contact information

 Contact Information
PolicyPal Customer Service+65 3163 9184
PolicyPal Claims[email protected]

 

Read more:
7 Best Term Life Insurance Plans in Singapore
Term Life Insurance vs Whole Life Insurance: Which Is Best for You?
PolicyPal Promotion: Get Paid to Sort Out Your Insurance
Etiqa eEASY save V: Guaranteed 2.68% p.a. Returns + Win a Free Staycation!

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