Endowment Plans Are Not Just For Your Children
Insurance | 29 Aug 2019
Traditional, long-term endowment plans are great for saving for your child’s higher education expenses. They offer a safe, stable way to guarantee your children have money for the future.
But did you know that you can buy a short-term endowment plan? That’s right, you can buy an endowment plan for three or five years, instead of the typical 10, 20, or 30. Endowment plans are a smart, risk-free way to build your profitable future.
Wait! What is an Endowment Plan?
An endowment plan is a combo of life insurance and an investment plan. You get two for the price of one. With an endowment plan, you pay a fixed premium into the plan, which guarantees a no-risk return per annum and a death benefit in the event the assured dies. When the policy expires, you receive the premium invested plus the per annum rate. Save money and protect your family at the same time.
Protect Your Family and Guarantee No-Risk Returns
Many Singaporeans starting families see the benefit of a long-term endowment plan. But these plans require at least a 10 to 15 year holding period. Protecting your family’s financial well-being requires a variety of investments. Short-term plans give you the flexibility to save for many other different reasons, not just education.
A short-term endowment plan is a powerful way to build:
Rainy Day Funds. Save the money and the interest for unexpected purchases, like medical bills or dentist visits. Keep that rain away with your ‘endowment umbrella’.
Insurance Protection. Use the guaranteed per annum interest to purchase important family insurance plans, like auto or pet insurance. Your Maltese will thank you when you buy an ‘endowment shield’.
What are the benefits of a short-term endowment plan?
Many families don’t have the luxury of time when it comes to investing. Short-term endowment plans are built to allow everyone the opportunity to earn safe returns. Young or old, investing for 3 years or 30, short-term endowments are here to make sure you can save money.
Short-term endowment plans have many benefits.
- No interest rate risk or investment risk
- The policy becomes your “forced savings”, which means the money won’t be spent
- Your family is protected in the case of death
- Low minimum investment — invest as little as S$5,000
- Invest for just a few years — you don’t need to put money away for 20 or more years
- Buy peace of mind — returns are guaranteed and you don’t need to watch the markets
Short-term Endowment Plans: Smart + Safe + Secure.
Investing in your family’s future is always a smart idea. Don’t risk your family’s health and financial well-being by leaving money in the bank. Put your money to use protecting your family, while guaranteeing risk-free returns. A predictable investment makes great financial sense when your family’s future is at risk.
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