Looking At 3 Big Benefits Of Endowment Plans In Singapore

1. Looking At 3 Big Benefits Of Endowment Plans In Singapore

2. You might have heard friends and family recommend endowment plans in Singapore as a way to save up for the future. For the uninitiated, an endowment plan is a savings, investment, and insurance hybrid product. In simpler terms, you maintain a savings account with regular premiums that help you build a corpus of funds. And, since the savings plan is maintained through an insurance company, you also get life insurance coverage too on the plan.

3. So, are endowment plans better than normal savings accounts? Most definitely! An endowment plan can truly help you grow your savings in a more disciplined way. You can actually set up an endowment plan for certain life goals, such as being able to pay for your child’s university or go on a world tour with your spouse a few years down the line. And, that’s not where the advantages end. Here are 3 big benefits you can look forward to if you choose to take an endowment plan.

4. Guaranteed returns One of the biggest plus points of an endowment plan is the fact that you get guaranteed returns. No matter how the funds perform, the guaranteed amount comes to you when the plan matures. Plus, you may also get a non-guaranteed bonus if the funds perform well. So, the amount you actually get back from an endowment plan could be higher than what you put in through your premium(s). With a regular savings account, the returns would usually be far less.

5. Disciplined savings Endowment plans require you to pay regular premiums (though there are options for single premium plans as well). This means that you need to put aside money each month without fail in order to keep your plan going. This will help discipline your savings each month. A regular savings account, on the other hand, might be a little harder to stick by. You might feel tempted to miss out on your savings every now and then and actually fall short on your long-term saving goals.

6. Insurance payout Endowment plans serve the dual purpose of helping you save money while also giving you some life insurance coverage. If something unfortunate were to befall you, your nominee would get the insurance savings plan with a lump sum payout. As endowment plans are generally taken with a certain financial goal in mind, the insurance component is a huge boon. For instance, you might want to take an endowment plan to save up for your child’s university fees 15 years from now. If something unforeseen were to happen, the death benefit payout can help ensure that your child can still go to university. This kind of assurance does not come along with a regular savings account.

7. With all these benefits, an endowment plan would definitely make for a worthy addition to your insurance portfolio. Do speak to a financial consultant for help in selecting an endowment plan suited to your unique life goals. Remember to always review your insurance coverage at regular intervals to ensure you are fully protected. We hope that this article has been helpful for you. Good luck.

8. Read More: - If you are a parent, you must take life insurance. Here's why… You can even visit our Social sites:Facebook:- https://www.facebook.com/PrudentialSingapore/Linkedin:- https://www.linkedin.com/company/prudential-assurance-company-singapore/Youtube:- https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQInstagram:- https://www.instagram.com/prudentialsingapore/?hl=en

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