Endowment Insurance in Singapore: Securing Your Financial Future

Endowment insurance is a unique financial product that combines life insurance protection with a savings component, making it an attractive option for many Singaporeans. In the context of Singapore's emphasis on financial planning and wealth accumulation, endowment plans play a crucial role in helping individuals meet their medium to long-term financial goals while providing a safety net for their loved ones.

How Endowment Insurance Works in Singapore:

Endowment insurance in Singapore operates on a simple principle: policyholders pay regular premiums over a specified period, typically ranging from 10 to 30 years. These premiums are then invested by the insurance company, with the aim of growing the policyholder's savings. At the end of the policy term, the policyholder receives a lump sum payout, which includes the sum assured and any accumulated bonuses.
During the policy term, the plan also provides life insurance coverage. If the policyholder passes away before the policy matures, their beneficiaries receive the sum assured, often along with any accrued bonuses, ensuring financial protection for loved ones.

Benefits of Endowment Insurance in Singapore:

• Forced Savings: Encourages disciplined saving habits
• Guaranteed Returns: Offers a minimum guaranteed payout at maturity
• Potential for Higher Returns: Possibility of additional bonuses based on the insurer's performance
• Life Insurance Protection: Provides financial security for beneficiaries
• Low-Risk Investment: Generally considered a safer investment option
• Tax Benefits: Payouts are typically tax-free in Singapore
• Flexibility: Options to customize the policy with riders for additional coverage
• Goal-Oriented Saving: Ideal for specific financial goals like education or retirement planning

12 Best Endowment Insurance Policies in Singapore 2024

Following is a list of the 12 best savings insurance in Singapore 2024 offered by top savings life insurance companies.

• GE Annual Cashback Endowment

  Receive guaranteed annual cashback from the end of the second policy year until the end of the second last policy year, providing extra money to use as you please or reinvest at an attractive interest rate. Enjoy an attractive total payout by reinvesting your annual cashback, allowing you to grow your savings and receive a higher total payout together with the lump sum maturity benefit when your policy matures. Choose from flexible policy terms with options for premium payment periods, allowing you to better manage your funds to match key milestones in your life.

  • Guaranteed annual cashback
  • Attractive total payout
  • Flexible policy terms

• Income Gro Cash Flex Pro

  Receive yearly cash benefits of 3% of the sum assured and non-guaranteed yearly cash bonuses from the end of the 2nd policy year, providing flexibility to fund goals or accumulate savings. Capital is guaranteed upon maturity for policies paid yearly, ensuring you get back at least all premiums paid excluding optional riders. Offers flexible choice of premium and policy terms, allowing customization to fit individual financial plans and goals.

  • Yearly cash benefits
  • Capital guaranteed upon maturity
  • Flexible premium and policy terms

• Great Wealth Multiplier III

  Receive multiplied returns of up to 8X or more of total premiums paid, with 100% capital guaranteed as early as the end of the 15th policy year. Choose to appoint your spouse or child as a secondary life assured, allowing the policy value to continue growing beyond your demise and support future generations. Enjoy financial flexibility to use the cash value for life's milestones or pass on the financial choice to your spouse or child.

  • Multiplied returns up to 8X
  • 100% capital guaranteed
  • Secondary life assured option

• PRUActive Retirement II

  PRUActive Retirement II offers a guaranteed monthly income plus potential increasing non-guaranteed income that never decreases, providing financial security and protection against rising costs in retirement. The plan provides exceptional flexibility, allowing policyholders to start payouts as early as age 50, receive them for up to 30 years, and adjust the payout period based on changing needs. It includes valuable protection benefits like coverage for accidental disability, surviving spouse benefits, and the option to grow retirement funds by reinvesting payouts.

  • Guaranteed monthly income
  • Flexible payout options
  • Valuable protection benefits

• PruGolden Retirement

  PRUGolden Retirement provides a stable monthly income for 10, 15 or 20 years to supplement retirement needs. The plan offers additional monthly payouts and waiver of future premiums if the policyholder becomes disabled due to an accident. There is an option to transfer the policy easily to a spouse if the policyholder passes away before the policy expires.

  • Stable monthly income
  • Additional payouts for disability
  • Policy transfer option

• PRUActive Cash

  PRUActive Cash offers flexible premium and policy terms, allowing customization to suit individual financial needs. The plan provides guaranteed Yearly Cash Benefits from the 2nd policy anniversary onwards, which can be received as payouts or accumulated for potentially higher returns. It includes a Maturity Benefit payable at the end of the chosen policy term to help fulfill defined future goals.

  • Flexible premium and policy terms
  • Guaranteed Yearly Cash Benefits
  • Maturity Benefit

• Manulife GrowSecure

  Get 100% of your capital return upon policy maturity, providing guaranteed protection for your investment. Receive premium waivers upon Total and Permanent Disability during the premium payment term or before age 70, ensuring continued coverage even if you're unable to pay. Enjoy flexibility with options for premium freeze, multiple premium payment terms, and policy term choices to suit your financial needs.

  • 100% capital return at maturity
  • Premium waivers for disability
  • Flexible policy options

• AIA Smart Flexi Rewards (II)

  AIA Smart Flexi Rewards (II) offers guaranteed yearly coupons from as early as the end of the 2nd policy year, providing flexibility to withdraw or accumulate for longer-term goals. The plan guarantees 100% return of capital at the end of the policy term for 5-year and 10-year payment period options, ensuring financial security regardless of market conditions. Policyholders can personalize their financial plan with flexible policy terms, offering choices in premium payment periods (5, 10, or 15-30 years) and corresponding coverage periods.

  • Guaranteed yearly coupons
  • 100% return of capital
  • Flexible policy terms

• PRUWealth Plus

  PRUWealth Plus (SGD) maximizes the full potential of your savings and provides flexibility to withdraw funds to pursue aspirations and milestones across all stages of life. The plan offers capital guarantee after 10 years and the option to defer premium payments for up to 2 years in times of need, providing financial security and peace of mind. It protects your family's future with death benefits and options like appointing a secondary life assured, joint ownership, and change of life assured, allowing savings to grow uninterrupted and be transferable to future generations.

  • Flexible fund withdrawal
  • Capital guarantee after 10 years
  • Family protection options

• AIA Smart Rewards Saver 2

  AIA SmartRewards Saver (II) offers guaranteed annual coupons of 5% of the insured amount starting from the end of the second policy year, providing a consistent stream of income. The plan guarantees to pay out at least 120% of the insured amount over the policy's lifetime, ensuring a minimum return on investment. It includes a waiver of premium benefit if the insured suffers from Total and Permanent Disability before age 70, allowing continued coverage without further premium payments.

  • Guaranteed annual coupons
  • Minimum 120% payout guarantee
  • Premium waiver for disability

• AVIVA my wealth plan

  Aviva MyWealthPlan offers high guaranteed returns of up to 2.35% per annum, allowing your savings to work hard for you. The plan provides capital guarantee, ensuring you get back at least 100% of all funds paid when your policy matures. It offers flexible premium terms, allowing you to choose between paying premiums for 5 or 10 years with policy terms ranging from 10 to 25 years.

  • High guaranteed returns
  • Capital guarantee
  • Flexible premium terms

• Prusave Max Limited Pay (USD)

  PRUSave Max Limited Pay (USD) offers flexible policy terms and premium payment options, allowing you to choose the best fit for your financial objectives and saving needs. The plan provides a death benefit that is the higher of 105% of total premiums paid or 101% of surrender value, ensuring financial protection for your loved ones. You can receive your maturity benefit as a lump sum or in yearly installments, providing flexibility in how you access your savings at policy maturity.

  • Flexible policy terms
  • Comprehensive death benefit
  • Flexible maturity benefit payout

How to Choose the Best Endowment Insurance Plan in Singapore:

• Assess Your Financial Goals: Determine what you're saving for and your time horizon
• Compare Guaranteed Returns: Look at the minimum guaranteed payout across different plans
• Evaluate Potential Bonuses: Consider the insurer's track record of bonus payments
• Check Policy Term Options: Ensure the policy duration aligns with your financial objectives
• Understand Premium Payment Terms: Choose between single, limited, or regular premium options
• Review Life Coverage: Ensure the insurance component meets your protection needs
• Consider Rider Options: Look for useful add-ons like critical illness or premium waiver riders
• Assess Insurer's Reputation: Research the company's financial strength and customer service
• Understand Surrender Values: Know the implications of early policy termination
• Seek Professional Advice: Consult a licensed financial advisor for personalized recommendations

Types of Endowment Insurance Available in Singapore:

• Traditional Endowment Plans: Offer guaranteed and non-guaranteed returns
• Education Endowment Plans: Specifically designed to fund children's education
• Retirement Endowment Plans: Focused on providing income during retirement years
• Short-Term Endowment Plans: Typically with terms of 3-10 years for quicker returns
• Investment-Linked Endowment Plans: Combine insurance with unit trust investments
• Single Premium Endowment Plans: Allow for a one-time lump sum premium payment
• Regular Premium Endowment Plans: Require periodic premium payments

Endowment Insurance for Different Life Stages in Singapore:

Remember, while endowment insurance can be a valuable financial tool, it's essential to align your choice with your specific financial situation and goals. Always consult with a qualified financial advisor to make the best decision for your circumstances in Singapore's unique financial landscape.