Short term endowment plans are forever popular and their "tranches" are fully subscribed very quickly.
Again, tranches is a french word for a portion of something, usually of money.
This article is to give you the ultimate guide on these short term plans. You can use this as a referencing point for present and future offerings.
How these plans work is very simple.
1) Apply for the plan and make premium payments as soon as possible.
As the plans are popular, it is usually being offered on a first-come-first-serve, premiums paid basis.
2) Wait for the policy to mature, most plans lasts 2 to 5 years.
Sometimes a single tranche may have plans offered in two policy terms, for example, SingLife previously had a 3 year and a 5 year endowment plan in one offering. It's natural that the longer period will come with slightly higher returns.
3) Upon maturity, the guaranteed returns with guaranteed capital will be returned to you.
Usually upon the last year, the capital will be guaranteed.
Read to the end on past campaigns and
which short term endowment is NOW AVAILABLE!
What to Look Out For
1) THE RETURNS
This goes without saying.
The returns of the plans are often affected by current interest rates in the market. AstuteParents will always benchmark the returns against prevailing fixed-deposit rates and SSB rates.
Another important thing to determine if it is simple interest or compound interest. This affects the eventual yield at maturity.
To this end, the easiest thing to do is to find the yield-to-maturity figure.
2) Policy Term
This is how long the policy will take to mature, and for the money to be returned to you. Naturally, the longer it is one should expect higher returns.
Not only that, this policy term should determine whether this product suits you or not. For instance, a 3 year plan is not a suitable savings instrument for a young couple that is saving for their house renovation that will be happening in 1 years time.
3) Funding Methods
Can the policy accept cash or is it also SRS-approved? Certain insurers allow re-investment of maturity proceeds of existing plans to fund these policies, NTUC Income's Capital Plus is one such example.
4) Other Coverage Included
What is the death or total permanent disability coverage for this plan?
SingLife allows withdrawal of the single premium without interest or penalty if life insured undergoes any life stage events (subject to various terms and conditions listed).
Summary of ALL plans in the market!
Here, we will list and update plans that are currently available in the market.
NTUC Income Capital Plus ***Fully subscribed on 31st March 2020
This is an on-going series of short term endowment plans by NTUC Income. Tranches of this endowment plan is being released from time to time.
Includes coverage for TPD of 105% till age 70.
AVIVA MySecureSaver ***Fully subscribed
Aviva's offering of short term endowment plans tend to be quite competitive and is very popular.
The most recent tranche (MySecureSaver ii) ended in Feb 2020.
Singlife Endowment ***Fully subscribed
Singlife's offer their tranches in "series". What's interesting about Singlife is that they allow withdrawal without interest and penalty if certain life events occur such as getting married, buying house, or in unfortunate circumstances like contracting critical illnesses.
The most recent tranche (Singlife Endowment Series Four) ended in Feb 2020.
LIC Wealth Plus V (V = 5) ***Fully subscribed
LIC stands for Life insurance Corporation (Singapore).
Current ones are still receiving applications and take note of 2 things here.
Firstly, this is a 5 year plan (more consideration needs to be put in given the longer tenure.
Secondly, and most importantly, the interests are simple interest compounded.
**China Taiping i-Save *** Fully subscribed***
China Taiping is one of the newest insurer to enter the very competitive market of insurance in Singapore.
The most recent one offers 2.18% for 3 years which is very attractive given current bank lending rates are higher.
The previous tranche (China Taiping i-Save) ended in Mar 2020 and was at 2.28%p.a.
So rates are really dropping! If you are keen to purchase, get in touch today.
NTUC GRO CAPITAL EASE PLAN! Launched since 23June2020!
Plan pays 1.85%pa fully guaranteed and plan is for 2years. Full details here!
Plans are covered under SDIC
A few private clients has expressed concerns over the brand of the insurer, their credibility, and ability to uphold payments years down the road.
Insurance plans are covered under Singapore Deposit Insurance Corporation (SDIC) as part of regulatory requirements for up to $75,000.
In addition, if you are keen to hear more low risk ideas, look for the video tutorial below.
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These short term endowment plans are VERY POPULAR. They are usually subscribed within a matter of days (some even on the day of launch!). And we get a lot of enquiries only after it is fully subscribed.
Do contact us on either Whatsapp and leave your email or join our Telegram channel to keep updated on the latest offering.
Last updated on July 5th, 2020 at 11:28 am