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When it comes to savings, we want to cultivate a behaviour and habit for our kids. If you are looking at a savings plan that matures at a shorter time frame as compared to traditional savings plan, read on to find out more!
As a form of Endowment, savings plan comes in many premium terms and returns. Premium terms are typically 15, 20 or 25 years. “Short Term” here refers to overall shorter premium and policy terms, we are looking at 5 to 10 years here. Some even matures in 8 years time!
It all depends on your needs, concerns and preferences. How long would a premium term make sense for your budget? Would it be single premium, 2 or 5 years term?
Are you looking at just providing Tertiary Education in 10 years time or are you taking into consideration for your child’s business plans when he/she graduates after University?
A short premium term of 2 or 5 years also meant requiring a higher premium budget.
Depending on the different scenarios, a Short Term Savings Plan may be more suitable as it helps you plan for your child. It also can help you to plan for your retirement goals.
A limited premium term ranging from 2 to 6 years (or more) maturing in 8 to 10 years.
Grow your cash with the usual insurer’s Par-Fund returns with the ability to withdraw partially/fully.
Safeguard your savings in the unfortunate event of Death or Terminal Illness.
With shorter premium terms like 2, 5 or 6 years, a waiting period called the Accumulation Period will be needed for the amount to grow. Typically at least 5 years.
This sort of savings plan allows for parents to plan within the timeframe of 5 to 10 or 10 to 15 years. If you are looking at up to 20 or 25 years, do consider mid to long term or even legacy endowment plans for the amount to mature to suit your needs and concerns.
Single Premium, 3, 5, 10, 15, 20, 25 years
Break-even 4th Policy Year
2 years
There are many variations of savings plans out there. Working with experienced advisors and constantly staying updated and product focused, we have specially reviewed and compare them for you so you don’t have to do so.
Simply fill in the form to find the coverage best suited to your needs. Our experienced licensed FA advisor will get in touch with you shortly upon your request.
No obligations. No hidden fees and costs. Just professional advice.
It ranges from Single Premium (1 time) to premium term of 2 to 6 years. The plan may then be a total of 8 or 10-12 years. We shortlisted the shortest number of years to maturity here for Short Term Endowment plans.
You should consider a savings plan if you want a safe instrument to grow your wealth and also to protect it from inflation’s corrosion. In a nutshell, a savings plan provides a lump sum payout at a stable rate of return and most insurers provide capital guaranteed at the end of the policy term.
Endowment plans are capital guaranteed upon death. They safeguard your premium and you will not lose out on the capital should death occurs. Insurers also typically generate returns of 3% to 5% annually by the maturity date.
Yes. Because Insurers primarily provides coverage elements, there are benefits like disability premium waiver and guaranteed additional payouts should disability occurs during premium or pay-out years. There are also 3rd party premiums waiver as well as cancer premium waiver benefits.
You will actually lose out on your capital put in and depending on when you actually do that, it will affect the amount. Essentially you will make more loss if you terminate early into the plan. Having any form of Insurance or Endowment is a commitment to protect yourself from inflation and rising costs.
The Cash Value of an endowment policy is a pool of money that grows within it. Insurers will allocate some of the premiums that you pay into their underlying investment which can be assets and/or funds portfolios. This is managed by a fund manager either by the insurer or appointed. Insurers also typically generate returns of 3% to 5% annually.
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