China Taiping i-Save Plan 12th Tranche offers you a guaranteed return of 1.50% per annum for 3 years. China Taiping i-Save Plan 12th Tranche is on a limited tranche basis. This means that once it is fully subscribed, it will not be available. You will have to wait for the next tranche.
With falling interest rates, this can be a good alternative to traditional bank fixed deposits.
What are Endowment Plans?
Endowment plans such as China Taiping i-Save are life insurance saving plans offered by insurance companies.
The aim is to help policyholders save towards specific financial goals. Policy holders can contribute a regular amount for a designated period of time or pay a lump sum upfront at the start of the policy.
Upon maturity of the policy, you will be given a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.
In this case, China Taiping i-Save Plan is a single premium, non-participating life insurance savings plan offered by China Taiping Insurance (Singapore) Pte Ltd that gives you a lump sum payout with guaranteed return of 1.50% per annum over 3 years.
The minimum amount required is S$50,000 and a single premium of S$100,000 paid will give you a guaranteed payout of S$104,570 at the end of policy maturity.
In my opinion, Endowment Plans are low risk investments as compared to stocks and bonds. I have previously bought the NTUC Gro Capital Ease. Since there are no new tranches from NTUC Income at the moment, China Taiping i-Save Plan is a good alternative.
Disclaimer: This is not a sponsored post and solely the author’s opinion.