Singapore is popular in the investment community for its financial sectors and trade. Singapore is termed successful in global trade and this is due to best short term investment plan in singapore location and also for the fact there is negligible corruption. Besides this, Singapore also boasts of a skilled workforce, best short term investment plan in singapore, advanced infrastructure and low rates of tax. There are multiple benefits of investing in Singapore and you find a wide range of options available.

You need to have a thorough knowledge of the different investments and opt for a specific one in accordance to your requirement and the benefits this offers.  Besides the many long term saving plan,Singapore, you have the option of a short term investment plan which is favorable to quite a few.

Factors to consider:

Before making a choice between the long term saving plan, Singapore and the short term plans you need to ensure you consider specific factors.

* Objectives of the Investment:

You need to ensure you set specific goals for yourself so that you gather the required confidence for investing. You can start off with the monthly investment plans which are offered by multiple local brokerages. Investing for retirement is definitely different as compared to investing for buying a home or for funds to travel.

*Products of Investment:

It is advisable to opt for investments which are familiar to you, that is, you have all the information and knowledge about. Investing strategies include putting your funds in index-funds considered as ‘broad-based’. These include Exchange Traded Fund (ETF), Straits Times Index (STI) or the ABF Singapore Bond Index fund.

You need to gradually opt for complex instruments after you have the required knowledge. Real Estate Investment Trusts (REIT), is apt for those who like to own properties. You can also directly invest into the shares of specific property developers. Opting for bank stocks is apt for those working in the financial sector.

*Asset Allocation:

It is advisable to spread your investments across different classes of assets so that the investments are not correlated to each other perfectly. This is wise as with a single investment you have chances of losing out in case of any changes made in the economic policy.

Some Short Term Investment Plans, best short term investment plan in singapore, Singapore:

Most of the investment plans listed below ensure returns which are risk-free.

1. Singapore Government Bonds:

The government bonds by the Singapore government offers you a choice between the long term savingsplan, Singapore and also short term savings plan. The long term investment plan can be anywhere from 2 years to 30 years.

The returns paid by these bonds are anytime higher as compared to the treasury bills of 1 year but is not the choice for those looking for short term saving plans.

1. Fixed Deposits:

Fixed deposits work well for both, those looking for long term saving plan, Singapore or even those looking for a short term saving plan. Every bank has a different set of criteria with their fixed deposit schemes. You have the choice of seeking the help of qualified professionals to ensure you make the apt choice. Most of the banks offering fixed deposits have their own set of conditions which need to follow.

1. Savings Plans:

Savings plans in Singapore again can be long term saving or short term saving. Insurance companies offering the savings plans tend to guarantee the returns along with the capital. There are specific saving plans which guarantee the capital but not the returns.

With a saving plan you either need to contribute continuously for a fixed period of time or lock the funds for a specific number of years. In case you are unable to do so, there are chances of you losing the returns.

Singapore Deposit Insurance scheme (SDIS) also covers these plans. It is possible to get an insurance component that ensures payment in case of an unfortunate incident.

Benefits of Investing in Singapore:

Singapore has a growing economy along with favorable demographics and a rich population, best short term investment plan in singapore. Investors need to be aware the focus on trade can lead to some dependence on the global foreign trade.

*Open and Free Economy:

Singapore is considered to be an easy country to conduct any specific business as this has tax rates considered as ‘favorable’ skilled workforce and low level of corruption. Besides which, the infrastructure is advanced.

*Demographics favorable:

With third highest income per capita, Singapore has the highest number of millionaires and the lowest unemployment rate among all the developed countries.

Be it long term saving plans, Singapore or even the short term saving plans, you need to ensure you monitor these on a regular basis. This allows you to make any required adjustments and plan out a conservative strategy that offers you a passive income. If not too sure, it is advisable to seek out professional help for the apt investment in Singapore.

It's all about time in the market, not timing the market

Many investors believe that they can "time the market" – getting in before the prices rise, and getting out just before the prices fall.

Anticipating these market rises and falls can be extremely difficult and stressful for the investor, which is why RIS may be a preferred approach as compared to taking the risk to "time the market".

Illustration of the benefits of dollar cost averaging

If the unit price falls to S$20 in June, you will have realised a smaller loss if you had practised dollar cost averaging, than if you invested one lump sum in January.

On the other hand, if the unit price rises to S$60 in June, you will have received a much larger gain with dollar cost averaging than with a lump-sum investment.

Based on the above scenario, with dollar-cost averaging, your losses are minimised while your gains are potentially enhanced.

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In September last year, many retail investors were anxiously waiting for their financial consultants to call and e-mail them with the good news that they had been successful in their latest investments.

But they were not betting on securing a red-hot new initial public offering share that was expected to jump in value when it made a debut in the stock market.

Neither were they hoping to get their hands on some exclusive "by-invitation" private investments that could offer higher-than-usual yields.

Instead, they were banking on getting their hands on a very conservative investment that would produce only $18 in profit for best short term investment plan in singapore $1,000 that they put in.

The product in this case was a three-year single-premium endowment plan which pays 1.8 per cent guarantee yield annually. Within hours, the capital guarantee and limited tranche plan was fully subscribed.

In today's low-interest-rate environment, such guaranteed return is better than bank fixed deposits and is very attractive to conservative investors.

Even if you are keen to apply, it is not readily available.

The most recent offer was the Temasek five-year bond at an annual 1.8 per cent yield which had an overwhelming subscription rate in November.

We have a client who has been with us for more than 15 years. She is in her 60s and is a high-ranking executive. She will only look for fixed deposit or short-term guaranteed endowment plans. As she had lost money in the stock market, she doesn't like the volatility risk.

The ups and downs of the market affect her emotions which in turn affects her work.

If you also share her risk appetite, here are some financial products that you can look at.

Singapore savings bond

This is backed by the Singapore Government and you can get back your investment with no capital loss. You can invest from as little as $500 to the $200,000 maximum, subject to a small service fee.

The January 2022 issue is offering 1.64 per cent annually if you hold this for 10 years. As the rate of return is based on your investment period, any early termination will have lower yield, such as 0.52 per cent for first year.

Single-premium endowment plan

Insurance companies do offer short-term single-premium endowment plans from three to five years. There are plans which provide guaranteed annual yield of 1.5 per cent as we are in a low-interest environment.

You should reach out to your financial consultants or insurance advisers to express your interest so they can notify you when there is a good offer. You will need to hold to maturity for such plans as early withdrawal will carry penalties.

When you see “life best short term investment plan in singapore it feels like a huge financial commitment with uncertain benefits. 

Once you read the insurance’s terms, you feel much more confused if you’ll receive your benefits or get them at all during your lifetime. Insurance is tricky as an investment because you never know you need it until an insured event happens to you. 

Read on to get the clearest picture of short-term endowment plans.

What Is An Endowment Plan?

Picture this: you want to insure yourself and your family against a low-risk but devastating event. However, nobody can predict the unlikely event’s passing, making insurance a troubling investment. If it passes, you can justify all you’ve paid for the insurance. Otherwise, you’ve spent a huge amount for nothing.

An endowment plan meets the investor halfway. You get protection against multiple insured events plus a maturity period that pays out a certain amount of cash benefit. Many Singaporean investors have made profits or broke even by using endowment plans, best short term investment plan in singapore, making them an excellent insurance and investment fund hybrid.

Types of Endowment Plans

Endowment plans have varying maturity periods carrying their respective risks. While short-term plans carry the relatively highest risk of all three, you can receive your money on the dot and with possibly insurer-guaranteed returns. On the other hand, long-term plans give your savings a longer time to grow, allowing insurers to give you better-guaranteed returns than short and mid-term endowments. Let’s dive deep into each one.

1. Short-Term Endowment: You get best short term investment plan in singapore insurance on certain events, and your savings maturity period is often within 3-4 years.
2. Mid-Term Endowment: You can insure multiple events, and best short term investment plan in singapore savings maturity period is often within 10-15 years.
3. Long-Term Endowment: Customers can protect themselves against multiple insured events. Their savings maturity period is often within their near-retirement or retirement age (60-65).

Reasons Many Singaporeans Are Going for Short-term Endowment Plans

Now that you see the benefit of endowment plans, you surely have plans to use them to increase your nest eggs and give yourself protection. However, it pays to have a financial goal aside from just amassing wealth. For most Singaporeans, including yourself, a short-term endowment plan is perfect for the following:

• Education Fund: University education is becoming much more expensive every year. With a short-term endowment plan, you can grow your money enough to pay for a full-course.
• Retirement: Your life plan can pay you a hefty endowment upon retirement. Supplement it with short-term endowment plans.
• Forced Savings: If you’re bad at saving money, short-term endowment plans can do it for you and give you protective benefits too.
• Stable Investment With Enough Returns: Short-term endowment plans give you shorter maturity periods with guaranteed returns on your investment. 

6 Best Short-term Endowment Plans in 2022

Without further ado, here are the best short-term endowment plans for wise investors.

1. DBS SavvyEndowment 4

DBS’s best for the short-term endowment industry has the bank partnered with Manulife as an insurance underwriter, best short term investment plan in singapore. If bitcoin investor world a DBS account owner, it’s the perfect choice for your short-term endowment plan.

• Minimum payment: S $5,000 minimum premium payable using your DBS/POSB or SRS account
• Policy term: 3 Years with a 101% Death Benefit
• Maturity benefit: DBS Savvy Endowment 4 is a participating endowment plan with a split between guaranteed and non-guaranteed returns. Your capital can gain huge bonuses depending on the fund’s overall performance.

DBS SavvyEndowment 4 is currently a tranche available best short term investment plan in singapore DBS as of March 2021. You can conveniently enroll in DBS SavvyEndowment 4 using your DBS Digibank account.

2. Manulife Goal 7

The insurer has earn extra money from home uk own endowment plan aside from serving as DBS’s underwriter for its SavvyEndowment 4. The Manulife Goal 7 has a high minimum payment, but you enjoy publish articles and earn money features you can’t find from other endowment plan providers in this list.

• Minimum payment: S $10,000 payable through cash or SRS.
• Policy term: 3 years for the fund to mature. Until then, you’re insured up to 101% of your premium.
• Maturity benefit: You get a guaranteed capital return from Manulife Goal 7 plus the fixed yearly income of 1.39% of your single premium. You can withdraw every year or leave to accumulate best short term investment plan in singapore rates, best short term investment plan in singapore. Leaving it to accumulate until the maturity period gives you a total of 4.23% fixed yearly income plus your guaranteed capital.

3. LIC Secure Growth 2

The Life Insurance Corporation of Singapore (LIC) offers its own short-term endowment plan for Singaporeans. LIC Secure Growth 2 is their short-term endowment plan.

• Minimum payment: S $20,000 single premium up to S $150,000 single check or cashier’s order payment. Higher total payments guarantee higher returns.
• Policy term: 3 years with a death benefit of 101.12%-101.22% plus a 10% additional amount for accidental first-year total disability or death sufferers (which it calls the first-year accidental death benefit).
• Maturity benefit: 
• You receive a guaranteed 1.12% per year for all single premiums from S $20,000-S $45,000
• Customers receive a guaranteed 1.22% per year for single premiums starting from S $50,000-S $150,000

4. LIC Wealth Plus 6

Another LIC endowment plan is guaranteed to give you the best returns. Its main difference to LIC Secure Growth 2 is it extends the benefit maturity to five years.

• Minimum payment: S $20,000 single premium best short term investment plan in singapore to S $200,000 single check or cashier’s order payment. Higher total payments beyond S $50,000 guarantee higher returns.
• Policy term: Five years with a single-premium death benefit with a 1.20% or 1.25% simple interest rates added depending on your premium size.
• Maturity benefit: 
• You receive a guaranteed 1.2% per year for all single premiums from S $20,000-S $45,000
• Customers receive a guaranteed 1.25% per year for single premiums starting from S $150,000- S$200,000

5. NTUC Income Gro Capital Ease

This endowment plan has the shortest policy term on this list at two years. It has many rewarding benefits for customers too.

• Minimum payment: S $5,000 payable through eNets or PayNow. You can pay through SRS, but the plan increases the minimum payment to S $20,000 using this method.
• Policy term: 2 years with death and total permanent disability benefits. If the insured event happens in the first year, you get a 100% premium. If it happens in the second year, you get 105% of the premium.
• Maturity benefit: Your endowment plan guarantees a 1.85% yearly interest rate (a total of 3.73%) added to your capital after the policy term ends as a non-participating plan.

6, best short term investment plan in singapore. Etiqa Tiq 3-Year Endowment Plan

While it has one of the highest minimum payments for an endowment plan, the Etiqa Tiq 3-Year Endowment Plan has a short policy term of 3 years plus a great death benefit.

• Minimum payment: S $10,000 single-premium payable by bank transfer or PayNow only
• Policy term: 3 years with a 101% premium death benefit
• Maturity benefit: Guaranteed returns of 1.8% per year.

Some Terms To Familiarize Yourself

The world of short-term endowment plans can get easily confusing. Here are some difficult terms that we can help you make sense of quickly with this handy glossary.

• Premium: The amount you pay to start the plan. Take note that all the payment amounts we’ve listed per product are only the minimum. You can pay more and get much higher guaranteed benefits.
• Policy term: The short-term endowment plan’s earn money displaying banners period. Most plans can last for 10 years and beyond or up to your retirement age. Short-term endowment plans often have a 2-5-year maturity period.
• Capital or cash benefit guaranteed upon maturity: Most customers’ gripes about insurance pay for something they don’t believe they need. Some endowment plans give back their initial insurance payment.
• Maturity benefit: The amount your capital has grown throughout the policy term. It’s often expressed in percentages. Some maturity benefits are guaranteed and non-guaranteed.
• Insurance coverage: All insurance policies have a scope of insured events they can cover. For example, the LIC Secure Growth 2 gives you death and total permanent disability benefit, best short term investment plan in singapore. You won’t get these benefits during a car accident with minor injuries because it isn’t part of your insurance coverage.
• Tranches: Endowment plans are similar to savings bonds. They’re limited in number, and those with attractive rates get quickly filled. You’ll have to wait for the next tranche if the current best short term investment plan in singapore you prefer can’t provide for you.

Short Term Plans are Perfect for People Who Want:

• Stability: Insurance policies give you peace of mind regarding devastating insured events. Plus, you get a cash benefit after a certain period for investing money.
• Compulsory Savings Option With Benefits: Having a mandatory monthly savings deposit helps you have a rainy-day fund. Your insurance against certain events is a great money-saving bonus to have.
• An Investment With Guaranteed Life Protection: If you want to grow enough cash and wish you can preserve your investment and give it to your surviving family upon an insured event, short-term endowment plans are perfect for you.

Short-Term Best short term investment plan in singapore Might Be a Bad Idea For People Who:

• Don’t Need Insurance: You’re better off investing with growth and hedge funds rather than an endowment plan if you don’t want best short term investment plan in singapore pay for the insurance side of things.
• Want High Return on Investments: Endowment plans only offer humble returns. If you have a higher risk appetite, other specialized funds can work better for your financing goals.
• Have Financial Commitment Problems: While no fund will ever promise a get-rich-quick result, you’ll need to wait and be patient in receiving your returns. If you’re impatient, best short term investment plan in singapore, endowment plans and other investment products might not be for you.
• You Aren’t Confident You’ll Profit or Benefit: All investment products carry huge risk even with short-term endowment plans and other stable investments. If you aren’t confident or unwilling to take on any risk amount, it’s best to stay away from endowment plans.

Important Details To Always Consider

Before finalizing your endowment plan decision, make sure you’ve checked these decision-helping details. With knowledge about each detail, you can make the best financial decision easily.

• Guaranteed Returns: Check if the plan’s stability and low-risk profile fit your financial objectives. If you need insurance that gives back what you paid for if you don’t get to use it, best short term investment plan in singapore, check if your chosen plan returns your capital by the policy term-end.
• Non-Guaranteed Returns: Ask yourself how much do you prioritize non-guaranteed returns. While their rates are tempting, the extra cost and expectation have a higher risk than guaranteed returns.
• Insurance Coverage: Death and total disability benefits are helpful, but you have to make sure you fit the criteria when the insured event happens.
• Endowment Duration: Short-term endowment plans offer 2-4 years of premium payment while giving you substantial returns. However, you might want a higher return on your investment and are willing to wait a little more for it.
• Early Redemption: Some short-term endowment plans allow you to choose the maturity benefit with some penalties. Make sure to ask these directly from your endowment plan provider.

Always Have a Birds-Eye-View on Things

Short-term endowment plans are an extremely-low risk product with an in-depth focus on insurance plus a small profit on the side. They’re great for customers who want an insurance policy but get back their investment capital if they never had to use the product.

It’s great to sign up for a short-term endowment plan if its insurance coverage works for you. Plus, it’s a perfect plan if you’re not willing to wait 10 years or even up to your retirement age. Always remember, the best endowment plan is what works well for your needs. Make sure to list your needs to see whether all currently available tranches work best for you, such as items in our list.

If you’re looking for a loan to fund your investments in Singapore, you can’t go wrong using Instant Loan’s triple quotation services. Plus, you get great content to help you start on an investment journey at any time.

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With the various investment tools you can use to grow your money, an endowment plan is one of the lowest risk options for you to choose from.

This is if you get a policy that provides a 100% capital guarantee.

Apart from using endowment plans to invest, it also acts as a forced savings account, and the returns would minimally allow you to counteract the effects of inflation.

What is an Endowment Plan?

The simple definition is that it is a life insurance policy. Besides covering the policyholder’s life, it also helps them save regularly over the years.

The savings accrue to a lump sum amount that they can claim once the policy matures.

It differs from investments that do not offer any insurance coverage in the event of the investor’s death.

Endowment plans come to the rescue for various reasons. It could be saving for your child’s education, a vacation, or retirement.

They all add to our personal financial goals – be it short-term, medium-term, or long-term.

How Does an Endowment Plan Work?

Before you decide on an endowment plan in Singapore, you may want to familiarise yourself with the diverse best short term investment plan in singapore it works.

Regular Premium Payment

An endowment plan requires you to make periodic payments throughout a period of time, unlike in the case of most investments and shares.

In the latter case, you usually need to pay a lump sum amount in the earnest money refund oklahoma premiums you pay in endowment plans are generally a fixed amount each time. You might also have the chance to increase or lower your premiums as you make changes to your policy.

The payment frequency can be monthly, quarterly, biannually, or annually.

Pre-Determined Maturity Period

You need not look out for fluctuating market conditions in the case of an endowment plan. They typically last for a fixed time duration, anywhere between three to twenty years.

Your financial milestones should determine the maturity period of your plan.

For instance, if you are in your early twenties and planning for retirement in the years to come, a longer maturity period might suit your needs.

On the other hand, those who are older and seeking low-risk investment pre or post-retirement may opt for a shorter maturity period.

If your object is to buy a home or pay for your child’s college education, the maturity period will depend on when you need the payout.

An important point to note is that endowment plans are seldom appropriate for short-term financial objectives, which are 3 to 5 years.

It means if your goal is to save money for a couple of years, you may want to choose investments like fixed deposits or savings bonds instead.

That’s because they are of lower risks but comes at lower returns as well.

If you’re okay with taking slightly more risks, a short term endowment plan might be for you.

Payouts Upon Maturity

You will receive the returns of your investment only when your endowment plan reaches maturity.

However, the return amount will be left unknown to you before it’s time to claim.

That is because the performance of the participating funds determines your payout.

The insurer will quote a guaranteed return amount at the time of signing up. It’s the minimum payment you will receive when your plan matures.

It can be higher or lower than the sum of all the premiums you pay over the years.

There will also be a non-guaranteed portion where the returns you receive are not guaranteed. As with best investing advice investments, best short term investment plan in singapore, there are risks involved.

In case you are receiving returns lower than the sum of all the premiums, you are probably losing money.

Any amount over and above the guaranteed value entirely depends on the investment performance.

As endowment plans are meant to be a safer option, it is best to look for one that offers 100% capital guaranteed. This guarantees that you will receive all your investment back minimally and any non-guaranteed returns on top of it.

Insurance Element

In Singapore, endowment plans usually come with a life insurance portion, best short term investment plan in singapore. And that is the reason why the companies selling endowment plans are mostly insurers.

This means endowment plans are a hybrid, similar to investment-linked policies, best short term investment plan in singapore. They cover both insurance and investment.

The premiums you pay will be split into both investment and insurance. If you choose higher insurance coverage, you will get lower returns when your plan matures.

The catch is that the insurance coverage is usually feeble to rely on entirely. Hence, if it is life insurance that you mainly need, best short term investment plan in singapore, you may want to sign up for a different plan to be more secure.

Participating vs, best short term investment plan in singapore. Non-Participating

A participating endowment plan usually offers a guaranteed sum and added non-guaranteed returns as a bonus. The premiums you pay are combined with premiums of other participating policies.

These premiums further go as an investment in a unit trust. The unit trust will then invest in bonds, stocks, and other assets.

This model makes you “participate” in the performance of the fund. In the end, you get the returns as non-guaranteed bonuses.

On the contrary, non-participating funds do not offer a bonus but only a guaranteed sum. So you have to decide whether you’re willing to risk some capital for higher returns or not.

Interest Rate

The interest rate is essentially the rate of returns. It determines the amount best short term investment plan in singapore you will earn once your policy matures.

You will potentially receive higher returns with a higher interest rate.

Advantages of Endowment Plans

It’s clear by now that you will probably need to make premium payments at fixed intervals in an endowment plan. And you probably foresee higher returns than the sum of your premiums when the plan matures.

Why would you particularly pick an endowment plan when other types of investments are available in the market? Here are some reasons why.

Insurance Coverage

If you find the insurance package in an endowment plan convincing, that’s a good reason to sign up for one.

Indeed the insurance portion in endowment plans cannot wholly suffice. But if you already have an insurance policy in hand, the protection from an endowment plan can act as a bonus.

You must always have something to fall back on as life is unpredictable. Endowment plans may have minimal life coverage, but it will be handy if things go wrong.

After all, it doesn’t hurt to have more protection in place.

Predictable Payout

When you invest in more volatile types of investments like stocks and ETFs, it can be challenging to figure out the right time to claim your payouts.

However, when an endowment plan reaches maturity, you know for sure that you will receive your payout.

If you have set the maturity date for a specific financial milestone, say your child’s university fee, you need not worry about your investment locking your money.

You can also look for endowment policies that offer you regular payouts over a period of time as well.

They work similarly best short term investment plan in singapore annuity plans.

In fact, many endowment plans give you the freedom to surrender your investment in the event of a crisis. It may lead to confronting a huge loss, but it won’t be as tragic as not having your money when you need it.

Low-risk Product

If your risk appetite isn’t high and you do not want to incur an invariable loss, endowment plans could be the right choice.

They are generally low-risk investments, best short term investment plan in singapore. Even if your returns are lower than the sum of all the premiums you pay, your losses have a saturation point and are limited to a capped amount.

Guaranteed Returns

If you are saving for a specific event marking a milestone in your life, you would surely like to have guaranteed returns. The premiums you pay will eventually amount to a lump sum return once your plan matures.

Depending on the policy you pick, whatever you receive will include your capital and returns of the participating fund, best short term investment plan in singapore, if any.

A Disciplined Saving Regime

Endowment plans compel you to save as it requires you to put aside a fixed amount regularly. This regime best short term investment plan in singapore conducive if you are a spendthrift and saving money is a challenging task.

There is a rising number of endowment plans available online. All thanks to advancements in technology. You can obtain the plans instantly sitting at home.

Disadvantages of Endowment Plans

Before you sign up for an endowment plan, you must weigh the negatives along with the positives.

This analysis will help you understand the traits and make an informed decision.

Unneeded Insurance Coverage

Many agents mislead individuals to sign up, zeroing in on the investment prospects of endowment plans. You must know that a portion of your premiums makes up for the insurance coverage.

Thus, best short term investment plan in singapore, best short term investment plan in singapore returns on investment will not be optimal as it comes at the expense of the insurance.

If an investment is your priority, an endowment plan might not be suitable for you. In all fairness, the returns are negligible from only an investment viewpoint.

If you don’t need insurance coverage, it’s wiser to invest your money elsewhere.

Lower Returns

The returns in endowment plans aren’t as high as you would like. As revealed earlier, the guaranteed returns may even be lower than the sum of all the premiums you pay.

Your insurer might sign you up in a participating fund where the returns will be lower than what you should earn. That is because a significant portion of your premiums goes towards insurance and fees to the insurance firm.

If you are financially savvy and can take risks to see higher returns, you can invest in ETFs or stocks. Otherwise, investment-linked policies can help you get higher returns than endowment plans if you’re not that savvy.

If you still want to add an endowment plan to your investment portfolio, best short term investment plan in singapore, some plans have higher guaranteed returns than others.

High-Commitment Maturity Period

Endowment plans can have a maturity period of up to 20 years. That’s bitcoin investing canada bill time too long to have your money tied up and an obligation to pay premiums.

If you think you will need cash sooner or urgently, you may want to count on more liquid best short term investment plan in singapore. Alternatively, you can opt for legitimate make money from home opportunities endowment plans.

Risk of Losing Money

If your insurer quotes the guaranteed money making electronic projects to be lower than the sum of your premiums, best short term investment plan in singapore, you are certainly at the risk of losing your money.

To avoid loss, you can choose a capital-guaranteed endowment plan, best short term investment plan in singapore. Or you could invest in a fixed deposit or savings bonds.

Things to Note Before Buying an Endowment Plan

If you know the things you need, you will find your perfect endowment plan. Prepare a checklist to make a concrete decision with the help of the following.

Cost of Premium

The first thing you should regard is the premium cost. You should be able to afford the premium, especially with long-term endowment plans.

High premium costs may lead to lapses in the policy.

Also, you can check which type of premium is more suitable for you.

Do you want to pay a lump sum upfront amount? Or are you more comfortable making recurring payments?

You can also choose the hybrid type with both single and regular premiums.

Going for lump-sum premium payment is usually more rewarding due to lower transaction costs – if you have the cash upfront.

Capital Guarantee

As mentioned a couple of times in this article, it’s best to look for endowment plans that guarantee you 100% of your capital back.

Because the objective of an endowment plan is to force you to save for a certain milestone, ensuring you have your capital gives you comfort that you can rely on it.

Guaranteed Returns Amount

What is an investment without higher returns, best short term investment plan in singapore, or at least one without losses?

Check to ensure the guaranteed returns are higher than the total premium amounts.

Additionally, you can check on non-guaranteed returns or bonuses and their structure in the plan. It’s recommended to not be bought into the non-guaranteed portion and only look at the guaranteed portions of an endowment plan.

Insurance Coverage Ratio

Buy an endowment plan only if you want to receive the insurance coverage part. Please go through the policy terms and know the coverage it offers.

You will most likely find that insurance coverage will not suffice on its own.

You might consider a term plan or a whole life plan for insurance instead.

The Surrender Policy

Check if there are penalties if you surrender. Are there consequences of surrendering the plan before the maturity date?

Some plans give guaranteed and non-guaranteed returns even if you surrender the policy.

Interest Rate

We know by now that higher interest rates yield higher returns.

Participating endowment plans may seem a better choice as it comes with a potential bonus. But they tend to come with lower guaranteed interest rates than non-participating plans.

Assess your risk appetite to decide better.

Insurer Credibility

Buy endowment policies from an insurance company with independent certification and financial strength. You could also review the credit ratings and performance history of the insurer.

Maturity Tenure

Endowment plans with shorter policy terms let you earn your funds earlier with lesser restraints. Ask yourself how long you can commit yourself to a policy.

Different policy tenures have varying interest rates. Long term plans often come with better interest rates.

But they also carry a penalty or interest cut if you settle early.

Some insurers allow investors to top up or withdraw funds 90 days after sign-up with no penalty or interest claw-up.

Claim Settlement Process

It’s best to choose an endowment plan with a quick and easy claim process. Check if you can report the claims online, via SMS or email, or at branches and central offices.

Who Should Get Endowment Plans?

Are you an ideal candidate to sign up for an endowment plan? The following pointers will help you figure out if the shoes liberal arts jobs that make money plans are fitting for those who want a lump sum payment for specific long-term financial goals. Go for it if you wish to accrue regular savings before retirement.

Conclusion

Endowment plans should mainly cover three areas:

• It should protect and ensure financial security for loved ones.
• It should help you reach your financial goal.
• It should boost savings to meet investment goals over the long term.

Endowment plans are not tailor-made for everyone. They vary with different terms and traits to suit the various needs of people. Many people end up making the wrong investment choice with endowment plans.

That’s because they think endowment plans offer a high return potential. In actual reality, it’s not. It’s supposed to force you to save while helping you combat inflation with the guaranteed and non-guaranteed returns it offers.

It is necessary to learn every detail of an endowment plan to benefit from it. Avoid policies with complex features and benefits unless you have the financial acumen to comprehend them.

We have some articles compiling the various savings/endowment plans from the different insurers in Singapore. Money making focus list is not conclusive as we’re still working on them, but do check out the articles here:

1. AXA Savings Plans
2. Manulife Savings Plans
3. NTUC Income Savings Plans
4. Aviva Savings Plans

You may also want to engage a financial advisor to guide you if you think you can’t figure it out on your own. There could be a catch in the fine print, and the financial jargon can baffle you.

Remember, the best endowment plan is one that addresses your specific needs. And you will recognise one if you will understand the entire package it offers in detail.