Best Endowment Plan in Singapore: Everything You Need to Know Before Getting One

Searching for the best endowment plan in Singapore to invest in?

Singapore’s average personal savings rate stood at an impressive 37.6% in the first quarter of 2023, underlining the country’s strong focus on financial security and wealth accumulation.

In this article, I will discuss the intricacies of endowment plans available in Singapore, from how these plans operate to emphasising critical components such as coverage, premiums, and maturity benefits.

Whether you’re considering a short-term endowment plan Singapore or a single premium endowment plan Singapore, this article aims to provide comprehensive guidance on making your first endowment plan purchase.

How Endowment Plan Works?

An endowment plan is a financial product that combines savings and life insurance coverage, which helps individuals to fulfil their short-term or long-term financial goals. In Singapore, you can choose from a selection of plans to suit your specific needs as well as preferences. These plans come with a short-term option (of 1 to 6 years) and a long-term one (of 15 to 25 years or more).

Key Features

• Guaranteed Sum Assured

Every endowment policy gives a minimum sum assured, regardless of the market conditions. The basic minimum amount which is payable to the insured depends upon the maturity of the policy or in the event of death or total permanent disability.

• Non-Guaranteed Bonuses (for Participating Plans)

Some endowment plans are called participating plans and they offer non-guaranteed bonus along with guaranteed sum assured. These bonuses depend upon the performance of the insurer. It includes the reversionary bonus, terminal bonus, cash dividend, or accumulation bonus. The insurer’s participating fund, responsible for investing the premiums of policyholders, allocates these bonuses.

• Non-Participating Plans

On the other hand, non-participating endowment plans do not offer such bonuses. They give you the guaranteed sum assured only, making them ideal for individuals who prefer lower risk and predictable returns.

• Premium Payment Flexibility

Endowment plan premiums can either be paid regularly, with monthly, quarterly, or annual premiums or as a single lump-sum payment at the beginning of the policy (single premium plans). For example, a policyholder pays $250 a month over a period of 15 years, meaning he pays $45,000 in total premium. Some of that money would help cover basic insurance, and the rest goes towards savings and financial investments.

• Investment and Savings Components

A portion of the premium, for example SGD150 out of the SGD 200 monthly premium is invested in funds which are managed professionals to generate returns. The presence of this savings and investment aspect is why so many policyholders regard endowment plans as not simply insurance, but investments for the future.

• Cash Value and Surrender Options

When the policyholder reaches the maturity age, for instance, 65 years, he/she can surrender the policy and get a lump sum payment. The cash value is made up of guaranteed benefits (sum assured) and non-guaranteed bonuses, depending on the insurer’s participating fund performance.

• Insurance Protection

The policyholder is also protected with life insurance coverage. It usually includes death benefits and total permanent disability benefits. It ensures that beneficiaries of the policyholder are financially assisted in case of unforeseen events.

The Endowment plans in Singapore promise guaranteed investment growth with a basic insurance coverage element. These policies offer a guaranteed payout and a chance to earn bonuses. They are ideal for individuals looking to combine their long-term savings and insurance cover.

The plans are flexible which can allow the policyholders to choose how to pay the premium as well as the terms based on their financial goals.

Is It Similar to Investment-linked Policies

Endowment plans and Investment-Linked Policies (ILPs) both combine life insurance with a savings or investment component, but they differ significantly in structure, risk, flexibility, and returns. Here’s a comparison table to help you understand how they align and diverge:

Common Coverage of The Best Endowment Plan in Singapore

Endowment plans in Singapore offer a combination of insurance protection and savings. For those looking for both financial protection and savings, this can be a great option worth considering. Here’s an overview of the common coverage features in the best endowment plans:

Coverage

Most endowment plans provide coverage for:

• Death: Most endowment plans offer coverage that provides a lump sum benefit to the beneficiaries of the policyholder in the event of death.
• Total and Permanent Disability (TPD): If the policyholder becomes totally and permanently disabled during the policy term, a lump sum is paid.
• Terminal Illness: If the policyholder suffers a terminal illness, some plans allow him for an early payout.

For example, under coverage of the GREAT SP plan, a lump sum equal to either 105% of the single premium or the surrender value (whichever is higher) will be paid to the policyholder if he dies (within the policy term).

Payout Assured and Bonuses (Upon Death)

The payout upon death typically includes:

• Sum Assured: The guaranteed base amount specified in the policy.
• Bonuses: There are additional amounts that may be added to the sum assured, depending on the type of endowment plan:
  • Participating Plans: These plans may provide non-guaranteed bonuses of reversionary and terminal type which depends upon performance of the participating fund of the insurer.
  • Non-Participating Plans: These plans provide only the guaranteed sum assured, with no additional bonuses.

For instance, the Manulife Goal 2025 plan provides a death benefit equal to 101% of the single premium paid plus bonuses earned, along with any bonuses earned.

Guaranteed Cash Value

Guaranteed cash value is the least amount which the policyholder will receive on surrender of the policy or at maturity without a bonus. This amount is typically equal to the sum assured. The guaranteed cash value may be less than premiums paid, especially in the early years of the policy.

Non-Guaranteed Bonuses

Non-guaranteed bonuses are additional payments awarded based on performance of the insurer’s participating fund. These bonuses are not promised and can vary year to year. Common types include:

• Reversionary Bonuses: Declared annually and added to the policy’s cash value.
• Terminal Bonuses: Paid out when the policy matures, surrenders, or files a claim.
• Cash Dividends: Policyholders are paid out cash at intervals which they can choose to receive or invest into the policy
• Accumulation Bonuses: The interest that is earned on the amount of non-guaranteed dividends that are retained in the policy are compounded..

For example, the DBS SavvyEndowment 22 plan provides a non-guaranteed maturity bonus that contributes to the total maturity value.

What are the best short-term endowment plans in Singapore 2025?

1. Great SP

Coverage

• Covers death and total permanent disability to ensure that you’re financially covered in the unfortunate circumstance of either event.
• The policy assures benefit payment irrespective of the market, thus making it your secure choice for peace of mind.

Plan Policies

• This best endowment plan in Singapore with 2 years policy term and single premium is designed for short-term growth.
• This short duration is ideal for those looking for a dependable and low-risk investment option.

Minimum Premium

• The minimum premium is S$10,000 which is affordable for those who have a decent amount of savings.
• The initial investment includes the cost of both insurance and the investment component of the plan.

Maturity Benefit

• You will get back 1.20% per annum at maturity within 24 months. It offers a guaranteed return.
• The payout includes the invested premium amount and the guaranteed sum meaning that the capital is safe.

Specialities

• No medical cheque-up required, making it easy and accessible for all individuals.
• You can pay using cash or Supplementary Retirement Scheme (SRS) with the option to choose how you wish to pay for the plan.

Best For

• Great for people looking for a short-term best endowment plan in Singapore that gives guaranteed returns and insurance coverage.
• This short term endowment plan Singapore is ideal for conservative investors who believe in safety and certainty over a short duration.

2. Manulife Goal 2025

Coverage

• Provides coverage for death which means your family will financially secure in case of your unfortunate demise
• With this benefit, the policy guarantees a payout to beneficiaries, helping to maintain financial security.

Plan Policies

• This is a single premium endowment plan Singapore with a policy term of 3 years or 4 years which offers a short-term and long-term balance.
• This plan gives you freedom to decide the term you want as per your financial goals.

Minimum Premium

• The minimum premium is S$5,000 and is affordable as compared to other similar plans in the market.
• Due to the relatively low entry point, more people can invest in a plan with guaranteed returns.

Maturity Benefit

• When you invest for three years, you get a guaranteed maturity yield of 1.52 per annum. When the investment is for four years, you get a guaranteed maturity yield of 1.64 per annum.
• The total returns can be as high as 1.80% per annum, which is quite a good return for medium-term locking.

Specialities

• No medical card cheque-up required, making it an option for everyone.
• Simple application with guaranteed acceptance makes getting on board easy.

Best For

• If you’re looking for guaranteed returns coupled with attractive bonuses for a period of 3 or 4 years, this plan is ideal for you.
• This best endowment plan in Singapore is suitable for those who wish to make medium-term investments with minimal effort and want to enjoy insurance coverage.

3. DBS SavvyEndowment 22

Coverage

• Provides coverage for death that secures the financial future of your family in your unfortunate absence.
• This short term endowment plan Singapore allows your loved ones to receive guaranteed benefits in order to stay financially secure.

Plan Policies

• This plan involves a single premium payment, and it has policy terms that are either 3 years or 4 years, thus suited for individuals with a medium-term investment horizon..
• This policy is simple and straightforward, with very clear terms, making it an easy option for an investor.

Minimum Premium

• With a minimum premium of S$5,000, this is accessible to many investors.
• Your premium includes both the insurance and investment component, thus helping you to save and secure your future in one package.

Maturity Benefit

• You will get guaranteed returns of 1.52% per annum for 3 Years and 1.64% per annum for 4 Years thus offering consistent returns.
• Your money is protected, and you can rely on the returns due to the capital guarantee.

Specialities

• No medical cheque-up needed, thus making fast and easy enrolment.
• You can apply for all these services online easily by selecting an SRS or cash payment options, making it convenient for those looking to manage their investments digitally.

Best For

• Perfect for those who are looking for an easy investment option with assured returns and insurance coverage.
• This DBS savvy endowment plan Singapore is especially suited for people who prefer ease and flexibility in their medium-term planning.

4. Singlife Digital Saver II

Coverage

• Provides coverage for death to ensure your loved ones have the same financial security as you would have provided in life.
• With this plan, your beneficiaries are guaranteed to receive payout.

Plan Policies

• A 3-year term plan that is a single premium and non-participating endowment plan that aims to provide higher returns than a regular saving scheme.
• Guaranteed returns along with insurance cover make it a good hybrid product.

Minimum Premium

• The minimum premium is S$20,000 and is for people with more significant savings to invest.
• The premium guarantees a return and protects your family in case of an emergency.

Maturity Benefit

• You are assured of a return of 2.60% per annum, which is very high for short term investments
• The company promises to return 108% of the single premium at the end of three years.

Specialities

• You’ll receive a 100% capital guarantee starting from the third policy year, providing peace of mind for policyholders.
• You can apply online and make your payment via a range of easy options like PayNow, FAST, Interbank Fund Transfer and SRS funds.

Best For

• Individuals looking for a simple application process and a higher guaranteed yield for 3 years.
• This is ideal for people who do not like hassles and want to grow their money while ensuring the safety of their loved ones.

5. Tiq 3-Year Endowment Plan

Coverage

• Provides coverage for death, ensuring that your beneficiaries will receive a pay-out in the event of your death.
• This plan ensures your money grows and keeps your family secure.

Plan Policies

• This is a single premium, non-participating endowment plan with a policy term of 3 years. Therefore, it provides short-term, predictable returns.
• This plan is for those who want to create wealth with very little risk.

Minimum Premium

• The lowest premium is S$5,000, making it affordable for all investors.
• The premium is paid at once and covers both investment and insurance components..

Maturity Benefit

• Guaranteed maturity returns of as high as 3.56% per annum, offering good returns in the short-term.
• You can get guaranteed returns of up to 10.5% over 3 years in this attractive investment option.

Specialities

• You do not need a medical to submit an application for it.
• You can apply for this plan online through Tiq by Etiqa app. You might also enjoy cashback up to S$250 when you apply.

Best For

• People who are looking for better returns which are guaranteed for a period of 3 years with the benefit of online application.
• This is suited for those people who want to earn a better return over a short time on an easy-to-use platform.

What are the best mid or long-term endowment plans in Singapore 2025?

1. Singlife Choice Saver

Coverage

• Provides coverage for death and helps your family financially in case of an unfortunate incident.
• This plan not only provides assurance to your loved ones but also accumulates savings over time.

Plan Policies

• A participating endowment plan that offers flexible premium payment options from 5 to 25 years.
• The plan enables you to build wealth with guaranteed returns, while you may also get non-guaranteed bonuses depending on the performance of the insurer.

Minimum Premium

• The minimum premium is determined by the selected premium term and coverage options.
• Investment has become feasible as the premium payment option is flexible and convenient.

Maturity Benefit

• On maturity of the plan, your investment will pay you the sum assured and bonuses that apply.
• This policy lets you grow your savings safely with the assurance of protection and returns.

Specialities

• You can select your ideal option from the wide range of premium payment terms (5 to 25 years) that you have.
• When your investment matures, your money will be returned to you regardless of market conditions.

Best For

• This best endowment plan in Singapore is suitable for those who are looking for long-term savings plans covering life insurance and giving non-guaranteed bonuses.
• This plan is for you if you want the flexibility to pay premiums and get a good and stable return.

2. Tokio Marine Nest Egg (GIO Cashback)

Coverage

• Provides coverage for death, so that your beneficiaries get financial help after your passing.
• Also, the plan offers guaranteed annual cash payouts beginning on the second policy anniversary, in addition to the death coverage.

Plan Policies

• A participating endowment plan where premium payments are made over the first 2 years with a policy term of a 10/12 year.
• This plan offers guaranteed annual payouts in cash, making it an effective option to build a retirement corpus..

Minimum Premium

• The amount of premium that must be paid is related to the sum assured and policy term.
• This is a simple and regular premium plan which helps in wealth creation along with cash benefits.

Maturity Benefit

• Upon maturity, customers will receive the sum assured as well as any bonuses, if applicable.
• The plan guarantees a regular source of money and profit as you grow older.

Specialities

• This plan offers assured yearly payouts to enhance income while providing death cover.
• If you want protection and payment guarantee over old age, then this plan is good for you.

Best For

• This plan is ideal for those who want a disciplined savings plan with assured returns and death benefit.
• This is especially useful for those who are retirement ready and who would like to benefit from guaranteed returns along with cash payouts.

3. GREAT Prime Rewards 3

Coverage

• Offers coverage for death, total and permanent disability, and terminal illness.
• Ensures that your loved ones are safe or secure when something unexpected occurs.

Plan Policies

• It is a single premium participating plan with a policy period of 10, 15, 17 or 20 years.
• This plan is perfect for customers who are looking for a simple and straightforward plan that has a one-time premium payment and is guaranteed.

Minimum Premium

• Minimum single premium of S$10,000 makes it an affordable option for many investors.
• This payment includes the cost of both the insurance protection and investment.

Maturity Benefit

• Maturity benefits are the amount assured along with bonuses, as declared during the term of the policy.
• The plan is guaranteed to give you a return at the end of the term.

Specialities

• At the end of the policy term, the insured receives a lump sum payment which serves as safety for the insured’s beneficiaries.
• The final payout may include yearly bonuses dependant on the performance of the insurer that enhances the payout.

Best For

• This plan is for you if you are looking for a one-time investment opportunity which offers returns and life cover.
• Ideal for those looking for a simple solution with guaranteed premiums and a long-term payout period.

4. OCBC GREATLife Endowment 3

Coverage

• Covers death, total and permanent disability, and terminal illness.
• Ensures that the policyholder’s beneficiaries get financial help during accidents or death.

Plan Policies

• It is a flexible plan which offers both single premium or regular premium options with coverage periods from 5 to 15 years.
• The strategy aims to create wealth over the medium term while offering capital protection.

Minimum Premium

• The minimum premium depends on the sum assured and premium term chosen.
• It gives flexibility in paying premiums for more access to a broader range of policyholders..

Maturity Benefit

• Upon maturity, the person receives the sum assured and the bonuses added to the policy.
• You get assured returns on maturity. Thus, you will get back all that you had invested along with some extra.

Specialities

• Offers payment options that are flexible for premiums, including single or regular payments.
• The facility’s term flexibility is a good choice for medium-term investors seeking a balanced plan which offers growth and protection.

Best For

• Great for individuals looking for a medium-term investment with an option for single or regular premiums.
• This best endowment plan in Singapore is Ideal for those seeking a combination of insurance cover and assured returns on investment with a medium-term horizon.

5. Etiqa Enrich Saver

Coverage

• Provides a death cover and gives guaranteed returns at the end of the policy term.
• Upon maturity, it offers a lump sum payout, making it a simple yet useful savings plan..

Plan Policies

• A 5-year fixed premium payment term non-participating endowment plan.
• Low risk–simple option simple savings plan is for customers who wish to save but don’t want to take risk on returns.

Minimum Premium

• The minimum premium varies based on the chosen sum assured.
• This is a simple and low-cost plan for individuals looking for assured fixed returns, safety and security for the long run.

Maturity Benefit

• You will receive a guaranteed amount once your policy matures and a lump sum payment at maturity.
• You will get your principal back with guaranteed growth with this plan making it a low-risk option.

Specialities

• This fixed premium plan offers guaranteed returns which is easy to understand and plan for.
• Returns come without any surprises as you earn while you get protected.

Best For

• Perfect for anyone looking for a low risk savings plan which offers assured returns and death cover.
• Ideal for those who prefer a simple and hassle-free method to save and build up wealth over a fixed period.

Conclusion

Understanding and comparing the best endowment plans in Singapore is essential for individuals seeking financial security and savings growth.

Whether you’re considering a short-term endowment plan, a single premium endowment plan in Singapore, or other innovative offerings like the FWD Endowment

For the DBS Savvy Endowment plan or the DBS Savvy Endowment Plan, thorough research and comparison are critical.

Disclaimer:

The information in this blog is intended for general informational purposes only and does not constitute professional financial or insurance advice. BizTech Community is not an affiliate of any of the companies or brands mentioned in the blog. Therefore, BizTech Community is not responsible for dissatisfaction with the author’s review or opinions expressed in the blog.

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