The Best Endowment Plans of June 2020

The Best Endowment Plans of June 2020

Endowment plans are life insurance saving plans that are 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 give a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.

Recently, fixed deposit interest rates had fallen to non-attractive levels. Thus, we should consider alternative financial instruments that can offer us better returns over a short fixed time duration.

Below are the best single premium, non-participating life insurance savings plan that I have found to provide you with a guaranteed return over the time period.

Tiq 3-Year Endowment Plan

Interest Rate (p.a.): 2.10%, Minimum Investment: S$10,000, Maturity Period: 3 years, Payment Mode: cash only

Etiqa is owned by Maybank Ageas Holdings Berhad, a joint venture company that combines local market knowledge with international insurance expertise. The company is 69% owned by Maybank and 31% by Ageas, an international insurance group.

Etiqa offers the Tiq 3-Year endowment plan. Based on S$10,000 placed in Tiq 3-Year Endowment Plan at an interest rate of 2.10% p.a., you will receive a guaranteed payout of S$623 upon maturity of the policy.

Tiq 3 Year Endowment Return and Benefit

China Taiping i-Save Plan

Interest Rate (p.a.): 2.13%, Minimum Investment: S$30,000, Maturity Period: 3 years, Payment Mode: cash only

China Taiping Insurance (Singapore) Pte Ltd is wholly-owned by China Taiping Insurance Holdings Company Limited. Since 2000, the company has been listed on the Hong Kong Stock Exchange, making it the first Chinese funded insurer listed overseas.

China Taiping Insurance (Singapore) Pte Ltd offers the China Taiping i-Save Plan. Based on S$100,000 placed in China Taiping i-Save Endowment Plan at an interest rate of 2.13% p.a., you will receive a guaranteed payout of S$6,530 upon maturity of the policy.

The Best Endowment Plans of June 2020

Summary

Here is a summary at a glance of the above endowment plans.

China Taiping i-Save Tiq 3-Year Endowment
Maturity period 3 years 3 years
Minimum investment S$30,000 S$10,000
Interest rate per annum 2.13% 2.10%
Payment mode Cash only Cash only

China Taiping i-Save Plan Guaranteed Return of 2.18% per annum

China Taiping i-Save Plan Guaranteed Return of 2.18% per annum

Do not get me wrong, I am not paid for this post and neither am I an insurance agent. With interest rates of Singapore Savings Bond falling and the recent stock market crashing due to COVID-19, I am on the lookout for lower risks investments.

If you are a follower of My Sweet Retirement, you know that I do not place all my eggs into a single basket. I place my monies in different investment instruments such as investments in the stock market, buying Singapore Savings Bond, buying short term endowment plans and fixed deposits. I also contribute to my Supplementary Scheme Retirement funds monthly. Subscribe to my post notification here if you are not yet a follower of My Sweet Retirement.

If you are wondering if I invest everything I have? The answer is no. I still have cash on hand in case I need the liquidity immediately. Now, let me introduce you to another Endowment Plan that I have found, which is China Taiping i-Save Plan.

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 2.18% per annum over 3 years.

The minimum investment amount is S$20,000 which gives you a return of S$1,336.72 at the end of policy maturity.

In my opinion, this is a low risk investment as compared to stocks and bonds. If your heart cannot take it or you cannot sleep because the stock market has crashed due to COVID-19, China Taiping i-Save Plan is something that you can look at for a short term investment.

China Taiping i-Save versus Tiq 3-Year Endowment versus NTUC Capital Plus (March 2020)

At the point of writing, the NTUC Capital Plus (March 2020) Tranche is no longer available. China Taiping i-Save Plan is also for a limited period only. Nevertheless, I have summarized the differences between the endowment plans below.

China Taiping i-Save Tiq 3-Year Endowment NTUC Capital Plus
Maturity period 3 years 3 years 3 years
Minimum investment S$20,000 S$10,000 S$5,000
Interest rate per annum 2.18% 2.10% 2.13%
Payment mode Cash only Cash only Cash and SRS

If you are unable to fork out S$20,000 in cash, I will recommend Tiq 3-Year Endowment Plan at an interest rate of 2.10% per annum. However, if you have an investment amount of S$20,000 or more, then I will opt for China Taiping i-Save with a higher interest rate of 2.18% per annum.

Both are low risks investments with 100% guaranteed return at policy maturity.