Best Endowment Plans In Singapore For 2019

The year 2019 is finally here, and for many, it represents alot of opportunities especially for anyone looking to invest. There are manyinvestment opportunities in Singapore, but heavy competition makes it ratherdifficult to get consistent returns. Investors, therefore, have to considerwhere they are most likely to earn decent returns and Endowment plans have beengaining more traction due to their low risk.

Understanding what itis

An endowment plan is a long-term insurance policy used as asavings plan that helps the investor acquire wealth over a specified durationof time such as ten years or more. Endowment plans are becoming more popular inSingapore because they are characterized by higher returns compared thelong-term savings interest offered by banks.

One of the reasons or the growing interest is that endowmentplans offer some guaranteed returns unlike traditional investments such asdeposits or stocks. They also require premium payments to be made throughoutthe investment lifespan. The premiums are usually fixed although investors havethe option of lowering or increasing their premiums.

Premium payments can be made either monthly, quarterly orafter every six months and even on an annual basis. Endowment plans to behavelike insurance policies due to the premium payments, and they also behave likemandatory savings. They are described as investment vehicles.

Endowment plans thatwill likely be huge in 2019

Before getting to the ones that are probably going to be thebest in 2019, it is important to understand the five different types ofendowment plans in Singapore.

• Single premium- They are characterized by justone lump sum amount that is paid upfront.

• Education plans- these are endowment plans thatallow investors to save up money for their children’s education.

• Regular premium- they offer a savings plan wherethe investor contributes a regular premium depending on the stipulated durationwhether monthly, quarterly or annually.

• Cashback- Just as the name suggests, these areplans where the investor may receive some cash back after some time but may optto reinvest it.

• Retirement- This is an endowment plan that youcan take up to prepare for retirement. You may opt to receive regular payoutsor let the interest accumulate so that you can receive a lump sum once youretire. You may also opt to receive regular payouts after retirement.

Below are some of the most promising endowment plans forthis year.

Aviva MySavingsPlan

This is a regular pay savings endowment plan that is 100%guaranteed. It will likely be a hit in 2019 because it offers flexibility evenfor investors on a tight budget. As far as flexibility is concerned, thisparticular endowment plan allows users to choose from a five-year to a 25-yearinvestment period. It also allows investors to pay premiums daily at amounts aslow as $1.56.

Aviva MySavingsPlan is also easy to enter because it doesnot ask any health questions while at the same time insuring the client againstaccidental death and terminal illness. Those subscribed to this endowment planare guaranteed 100% of their capital upon maturity. The only drawback is thatit does not allow a cash withdrawal option before maturity.

Manulife ReadyPayoutPlus

This is a cashback endowment savings plan that offers aflexible policy term ranging from 13, 15 and 20 years. It also has a premiumpolicy term that runs for 10, 15a and 20 years. The Manulife ReadyPayout Plusis available to anyone since no health questions are asked and it also offersprotection against terminal illness and death.

This particular savings plan allows investors to withdrawinterest from the end of their first policy year and onwards. The downside isthat Manulife ReadyPayout Plus does not offer 100% capital guarantee.

Great Eastern FlexiEndowment

This refers to an insurance policy that offers a flexiblepolicy term whose duration ranges from 10 to 40 years. The Great Eastern FlexiEndowment allows the insured to decide whether to fund their savings plan for afive-year duration, ten years or to go full term. This policy plan also insuresagainst permanent disability, terminal illnesses, and death.

The policy plan is quite flexible, and it offers a 5% discountto those that pay the 5-year premium in a one-time lump sum. The downsidesinclude the lack of a cash withdrawal option before the expiry of the policyterm and the lack of a 100% capital guarantee.

Aviva MyEduPlan

This is an education insurance plan that helps policyholdersto secure their children’s education. This is one of the numerouseducation-focused endowment plans that have been predicted to be the bestendowment plans in 2019. The cost of education in Singapore has been rising,forcing the country’s residents to start considering investing so that they canfund their children’s education.

Aviva MyEduPlan offers 100% capital guarantee andfacilitates multiple payouts before the savings plan reaches full term. Itspremium payment term is also limited to 10 years. The premium holder also getsto choose whether to pay the premiums on a monthly, quarterly, twice a year oreven once a year.

Aviva MyEduPlan can be acquired through an easy andstress-free process. It also accommodates additional riders that facilitatecontinued education in case something unfortunate happens to the policyholder.The disadvantage is that the Aviva MyEduPlan does not offer any guarantee onthe bonus.

The OCBC MaxEdu GoalEducation Endowment Plan

This is yet another endowment plan that offers an affordableavenue that policyholders can use to save for their children’s education. The OCBCMaxEdu endowment plan offers a 100% capital guarantee and even offers a bonuswhich can boost the policy holder’s balance significantly. It also offersmultiple payouts through Fixed Cash Benefits paid out after the policy reachesmaturity.

The policyholders receive the payouts when their childrenreach 18 or 20 years old. The payouts are supposed to help the policyholder topay for their child’s 3 or 4-year university course. The policy is easy tosubscribe to, and it provides additional protection against terminal illnesses,permanent disability, and death. The downside is that it does not offer aguarantee on bonus.

The above are just some of the endowment plans that willlikely be the best in 2019 although there are many other endowment plansavailable.

(By Neha Gupta)

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