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.
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.
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|
|Interest rate per annum||2.13%||2.10%|
|Payment mode||Cash only||Cash only|