Long-Term Endowment Plans | Endowment Plans in Singapore
Investmentby Priyadarshini 22 April 2022
In this blog, we tell you about Singapore’s best mid/long-term endowment plans.
Here are five of the top mid/long-term endowment plans on the market.
Singapore’s best mid/long-term endowment plans
MySavingsPlan by Singlife
Singlife MySavingsPlan provides tremendous flexibility in terms of premium and policy length, while also guaranteeing 100% of your capital if you maintain the policy to maturity.
Non-guaranteed returns of up to 4.75 percent per annum
Term premium: 10 to 25 years
Policy duration: 10 to 25 years
Withdrawal/payouts: When you hold the plan to maturity, you will receive a 100 percent capital guarantee, with no early cash withdrawal alternative.
What this plan is good for: This plan has premium and policy lengths ranging from 10 to 25 years. It also guarantees that your capital will be returned in full as a lump sum payout if you keep the policy until maturity. You may also be eligible for bonuses upon maturity, however, this is not guaranteed. This coverage is simple to apply for, and no medical exams are required.
What are the disadvantages of this plan: The maturity incentives are not guaranteed, and you cannot withdraw the money early. Riders are similarly limited, with no coverage for a critical sickness, however, a cancer premium waiver is possible.
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Excellent Eastern Flexi Cashback
Flexi Cashback from Great Eastern offers a variety of premium conditions and guarantees your capital upon maturity for limited-pay plans. The word “limited-pay” refers to paying for a set number of years during the policy’s life.
Interest rate: 4.75 percent p.a. non-guaranteed returns and 3 percent p.a. accumulation interest rate
Premium term ranges from 5 to 25 years.
Policy jargon: While the website does not specify the minimum and maximum policy terms, classic endowment plans often have policy terms that are slightly longer than the premium terms.
Withdrawal/payouts: After the second policy year, guaranteed annual cash payouts are made.
What this plan is good for: The high guaranteed yearly cash payout of 6% of the sum assured distinguishes this plan. You can also begin withdrawing cash dividends from the second policy year, or you can choose to re-deposit them into your plan to build your wealth. At maturity, your capital is also guaranteed.
Great Eastern Flexi Cashback offers premium payment options ranging from five years to a 25-year commitment, allowing you to choose the premium term that best meets your needs. This plan is also not subject to medical underwriting.
Finally, this policy includes coverage for death, total and permanent disability, and terminal illness. In the event of death, either 105 percent of the total regular yearly premiums paid less total survival benefits provided or the guaranteed surrender value will be paid out. Coverage for presumptive total and permanent disability is available for the duration of the insurance. Coverage for various types of total and permanent disability is available until the age of 65.
What are the disadvantages of this plan: Capital is only guaranteed upon maturity for limited-pay plans, not full-pay plans. There are only two expanded coverage riders available: Payer Benefit and Premium Waiver.
AXA Early Saver Plus – Singapore’s best mid/long-term endowment plans
AXA Early Saver Plus is an endowment plan that offers assured returns by paying out cash in the last three insurance years. In the last three policy years, the interest rate was 4.75 percent p.a. for non-guaranteed interest and up to 1.57 percent * p.a. for assured returns in the form of cash dividends.
5 or 10 years as a premium term
Policy duration: 10 to 25 years
Withdrawal/payouts: Get guaranteed cash payouts for the last three years of your insurance. You can also reinvest the first and second dividends to obtain the accumulated benefit at maturity.
What this plan is ideal for?
The AXA Early Saver Plus provides one of the highest guaranteed returns of up to 1.57 percent per annum, albeit this is only paid out in the last three policy years. Another benefit is the additional reimbursements for outpatient medical expenses, which can be up to S$200 per claim with a maximum of two events per policy.
You can also receive this plan without having to undergo any medical exams, and all basic plan applications will be accepted. Finally, this policy includes coverage for death, total and permanent disability, and terminal illness. It is assumed that a minimum payout of 101 percent of the entire premiums deposited will be made. If the death was caused by an accident, an additional 50% will be paid out.
What are the disadvantages of this plan? Your capital is not guaranteed, and you cannot withdraw the cash early. AXA likewise has a maximum age of entry of 60 years old. In comparison to the other insurance carriers on this list of long-term endowment plans, AXA Early Saver Plus offers just five or ten-year premium terms, with no option for longer premium terms such as twenty years.
The Tokio Marine Nest Egg (GIO Cashback)
The Tokio Marine Nest Egg (GIO Cashback) is an endowment plan that provides assured acceptance and capital if held until maturity.
Non-guaranteed returns of up to 3.8 percent every year
Premium terms of 5, 10, 15, or 20 years are available.
The policy duration can be 10, 15, 20, or 25 years.
Withdrawal/payouts: The option to withdraw the guaranteed annual payouts beginning in the second policy year for either eight or ten years, or to reinvest to earn interest. When you hold the plan until maturity, you will also receive a 100 percent capital guarantee.
What this plan is ideal for: This plan has a variety of premium payment durations, including a five-year premium term. While providing guaranteed yearly cash benefits beginning with the second policy year, it also provides some type of liquidity, allowing you to withdraw or reinvest this yearly cash benefit to generate interest.
Your capital is also guaranteed upon policy maturity, ensuring that every dollar paid in premiums is refunded. You will also be able to buy this plan without having to undergo any medical underwriting.
Finally, this plan includes death coverage. If this occurs, a lump payment equal to 105 percent of the total year premiums paid, accrued reversionary bonuses, and any accumulated guaranteed yearly cash benefits, plus interest, will be paid out.
Should you invest in a mid-to-long-term endowment plan?
A long-term endowment plan is an alternative for those wishing to save money for their child’s education or to plan for retirement. These endowment plans are also ideal for those who need to be disciplined in order to save money for the future.
However, keep in mind that long-term endowment plans necessitate years of dedication, with premiums paid on a monthly basis for the whole premium period. If you opt to cancel the policy before it matures, you may lose some of your capital.