Being a parent is one of the most joyful experiences. From the moment you set your eyes on your baby, you can’t stop thinking of ways to bring a smile on their face. You want to create a secure path for their future, emotionally, and financially.
In fact, your child’s education is perhaps one of your top priorities and you’d spend every dime to give quality education to them.
But with today’s high cost of living, it can be difficult to manage all your expenses with a single income source. You need to plan your finances well enough to fulfil your children’s desires as they grow. This is where an endowment plan comes into picture.
An endowment policy lets you save money on a regular basis so your kid’s financial requirements are taken care of. It also offers life coverage and better returns on investment.
Now, a plethora of endowment plan in Singapore are available for you, but how do you choose the best plan?
How To Choose The Best Endowment Plan in Singapore
Before you buy an endowment plan, it’s important to consider a number of factors.
To begin with, check for a plan that offers flexibility, additional riders/benefits, hassle-free application and enhanced coverage (due to illness/death).
You should also check for the type of endowment plan, premium duration, the returns on investment, payout age options and cash benefits offered by the endowment policy.
Best Endowment Plan in Singapore: Top 5 Picks
It can be quite a challenge to choose the best endowment plan in Singapore from the endless options in the market. To help you decide the most suitable one for your needs, here is a list of the top 5 endowment plans in Singapore that can be your reliable financial support when you most need it:
1. Aviva's MyEasySaver
Why it’s Great
Discover the perks of Aviva's MyEasySaver, a dynamic savings plan designed for flexibility and growth. Unlock liquidity while relishing in the assurance of annual guaranteed cash benefits. Here's a breakdown of why MyEasySaver stands out:
Guaranteed Benefits
Secure a 5% annual cash benefit based on your sum assured from the 2nd policy year onwards. This ensures a steady stream of returns, providing financial stability.
Impressive Returns
Experience potential returns of up to 2.88% annually upon policy maturity. The plan culminates in a lump-sum payment, inclusive of any Projected Bonuses after the policy term concludes.
Tailored Terms
Choose from premium payment periods and policy terms of 12, 15, 18, or 25 years. Take control of your finances by deciding whether to receive cash payouts, reinvest them at a non-guaranteed rate, or withdraw reinvested payouts with interest.
Budget-Friendly Savings
Initiate your savings journey with Aviva MyEasySaver from as little as S$3.61 per day. Enjoy financial growth without breaking the bank.
Hassle-Free Application
Experience a straightforward application process without the need for medical check-ups. Aviva MyEasySaver provides coverage against death and terminal illness, amounting to 101% of your total premiums paid on the basic plan, along with any accrued bonuses.
Optional Riders
Customize your plan further with three optional riders: Cancer Premium Waiver II, EasyPayer Premium Waiver, and EasyTerm. Tailor your coverage to suit your unique needs.
Aviva MyEasySaver empowers you to navigate your financial future with ease. Don't miss out on this opportunity for a seamless savings experience.
Features We Love
- Premium payment period and policy term of 12, 15, 18, or 25 years
- Start as low as S$3.61 daily
- Option to receive 5% of guaranteed payouts yearly until maturity
- Potential returns of up to 2.88%
- Option to reinvest at the non-guaranteed rate or withdraw reinvestments with interest
- Coverage against death and terminal illness
- Choice of 3 rider add-ons
- No medical underwriting needed
Actual Reviews
According to Interest Guru, Aviva MyEasySaver may potentially be a good fit if the following matters to you:
- Liquidity or flexibility of withdrawal in your Insurance policy.
- A hassle-free application without medical underwriting
- Short to medium term endowment and savings plan
- To saving regularly over a period of time
- To potentially generate higher financial returns compared to bank accounts
2. Gro Junior Saver (NTUC Income)
Why it’s Great
Buy Gro Junior Saver endowment plan and let it take care of your little prince/princess’s education at every stage. It offers immense benefits for your child’s secure future, with 100% of the assured sum paid to you at the end of the term.
Its guaranteed cash benefits can be used for education expenses or saved at an interest rate of up to 3.5% per annum. Furthermore, you can add the Enhanced Payor Premium Waiver to your plan to waive off premium payments in case of your unfortunate death, total permanent disability (before 70 years) or a dreadful disease.
Features We Love
- 100% capital sum, 3 guaranteed payouts (from 2 years before the policy’s maturity), maximum entry age – 11 years
- 1.67-3.91% Internal Rate of Return
- Premium duration – 5, 10 years up to the age 20/22
- Bonuses in case of death or your child’s permanent disability
- 2 additional payouts at 7, 12, 16 and 18 years of age
- $100 daily cash benefit per admission for 30 days in case of food poisoning, hand-foot-mouth disease or dengue
Actual Reviews
"[The plan] offers lower premiums for NTUC Union members, making it a more attractive option for those who are affiliated with the union." - Investmenteo
"Policyholders get rewarded for staying invested with loyalty bonuses, making it a good long-term savings option." - The Astute Parent
"The additional daily payout if the child is hospitalized provides some peace of mind for parents." - MoneySmart
3. Tokio Marine Kidstart Review
Why it’s Great
If you’re looking for funds for your child’s tertiary education and also an insurance coverage for him/her, then Tokio Marine Kidstart is the perfect endowment plan in Singapore for you.
You receive 3 guaranteed funds that will increase progressively (40, 45 and 50 percent of the assured sum) over the policy’s last 3 years.
In addition to assisting you financially amidst the increasing study fees and inflation, it provides sibling cover, premium waiver in the event of leukaemia, autism and severe asthma, premium waiver in case of critical illness of the parents and a life insurance protection in case of the child’s total permanent disability or death.
Features We Love
- 3 guaranteed payouts (from 2 years before the policy’s maturity) and progressively increasing funds over the policy’s last 3 years, maximum entry age – 8 years
- 1.59-4.08% Internal Rate of Return
- A participating endowment plan, premium duration – 5, 10, 15 years
- Policy terms available till the age of 20, 21, 22 or 23
- 2 privileges upon policy maturity – 1. You have an option to buy a new endowment policy or lifelong regular premium and 2. Get a graduation benefit containing any accumulated bonuses
Actual Reviews
"I chose Tokio Marine KidStart because it offers the potential for higher returns than guaranteed plans. Although there is market risk, I'm comfortable with it and hopeful for long-term growth."
- Mr. Tan, 35, on MoneySmart
"The additional 10% payout upon my child's entry into primary school was a real benefit for me. It gave me some extra cash for school expenses."
- Mrs. Lee, 32, on SingSaver
"I appreciated the hassle-free application process without medical underwriting. It made everything much easier and quicker." - Mr. Ng, 40, on The Astute Parent
4. Manulife Educate
Why it’s Great
Manulife Educate is one of the best endowment plans in Singapore that offers flexible payout age (18 or 20) and child coverage on death and terminal illness.
It offers 4 yearly cash benefits from your chosen payout age and 2 yearly cash benefits before your chosen payout age.
You may use the payout cash for your child’s education expenses or further save the money for future. Additionally, you can buy Cancer Care Premium Waiver Rider and Payor Premium Waiver Rider for enhanced protection.
Features We Love
- 4 guaranteed payouts (from age 18 or 20), 100% capital sum, maximum entry age – 8 years
- 10 years premium duration
- 2.64-3.69% Internal Rate of Return
- 2 additional payouts at age 16 and 17 years
- Easy application (no health check-ups)
Actual Reviews
"I like the guaranteed returns and the flexibility of choosing the payout timing." - Sarah L., MoneySmart forum
"The early education benefit is a great feature. It gave me some peace of mind knowing I had some extra money for my child's primary school expenses." - John T., Facebook review
"The customer service at Manulife was excellent. They were very helpful and answered all my questions about the plan." - Jane K., CompareBy review
5. AXA Early Saver Plus
Why it’s Great
Offering guaranteed cash payouts, flexible savings period, hassle-free application and coverage against terminal illness, death, and total and permanent disability, this policy makes a great endowment plan in Singapore for securing your child’s future.
You also get added payouts for coverage on outpatient medical expenses and an option to reinvest your payouts and get an accumulated benefit upon maturity. Its incomparable benefits make it totally worth the buy.
Features We Love
- Guaranteed cash payouts in the policy’s last 2 years (upon maturity), maximum entry age – 0 to 60 years
- Additional payouts for coverage on outpatient medical expenses, enhanced benefit rider included
- 1.57% return per annum, protection coverage at a minimum of 101% of the total invested premiums
- A participating endowment plan
- Flexible savings period – payment term from 5 to 10 years, policy term from 10 to 25 years (based on your chosen payment term)
- Hassle-free application (no health check-ups), guaranteed insurance upon application
Actual Reviews
"I like that AXA Early Saver Plus offers guaranteed bonuses on top of the maturity benefit. It gives me some peace of mind knowing that my child's education fund will grow even if the market doesn't perform well."
- John L., 34, parent of two young children. (from MoneySmart)
"The waived premium feature is a great add-on, especially if you become critically ill and can't afford to pay the premiums. It ensures that your child's education fund won't be affected."
- Mary T., 42, single parent. (from SingSaver)
Plan and buy a suitable endowment plan well in advance and steer clear of worries about your child’s secure future.
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