fbpx
Share Now
Insurance Savings Plan in Singapore

Best Insurance Savings Plan in Singapore

Best Insurance Savings Plans in Singapore: A blog about the various savings insurance plans available in the market.

 

An Insurance Savings Plan can be a great investment.

An Insurance Savings Plan can be a great investment. It’s a good financial tool that offers protection, savings, and tax benefits all in one place. The benefit of having an Insurance Savings Plan is that you can get competitive returns with your money. And the great thing about it is you don’t have to do any work or make any decisions on how your money grows. All you need to do is sit back and watch your money grow!

 

Find out if you should invest in market-linked policies or conventional savings plans.

The best insurance savings plan is one that offers you the best combination of savings from your premiums, potential growth from investment returns and rider protection. Make sure you read the fine print to understand what you are committing to before signing up for an insurance savings policy.

The most common types of insurance savings plans in Singapore are investment-linked policies (ILPs) and endowment savings plans (Par policies).

ILPs invest your premiums into a fund, which is managed by investment professionals. These funds tend to be invested in bonds and stocks, depending on whether they are conservative or aggressive. 3 Best Investment-Linked Plan or 101 Wrappers in Singapore

So, should you invest in market-linked policies or conventional savings plans? The answer to this question lies in what you expect from the plan. If your goal is to build a savings fund without worrying about the ups and downs of the market, then conventional savings plans might be the best option. But if you want to enjoy some immediate benefit by increasing your dollar value – which is 100% dependent on how the investment funds perform over time – then ILPs would prove to be a better investment.

 

It’s always better to start saving earlier

Saving for your goals is a lot like a long-haul flight.

You’re not always sure where you are on the route to your destination. You spend a lot of time waiting. You only know if you got there when you’re already there.

And it gets boring after a while.

This makes saving for specific goal a lot like watching paint dry or grass grow, except you don’t get to see what happens at the end. So it’s no surprise that people often put off starting their savings plan until much later in life, when they realise that “pfft, I have 5 more years to go? Better start saving more now!”

 

How to choose an insurance savings plan (Par policies)?

An insurance savings plan is one of the most popular types of Savings Plan because it allows you to save a certain amount of money over a period of time with guaranteed interest at maturity.

Insurance Savings Plans are also known as Par policies. If you are in your 30s and 40s, you may have a savings plan from NTUC Income, Great Eastern or Prudential.

For this article, we will be focusing on the most common type of savings plan — Endowment Insurance Savings Plans. These are insurance policies that provide a guaranteed cash payout when the policy matures.

The big question is: Is it the best way to save money?

 

Endowment Insurance Savings Plans

Endowment Plans - Best Insurance Savings Plan in Singapore
Photo by Sandy Millar on Unsplash

Before you are able to choose the best insurance savings plan, you should know what an insurance savings plan is.

To put it in simple words, an insurance savings plan is a product that provides a combination of insurance coverage and the ability to accumulate your savings.

The premiums you pay will be used to:

  • provide life (or other) protection for both yourself and your loved ones; and
  • accumulate cash value (for which most insurance companies will guarantee a minimum rate of return).

 

Child Education Plans

Best Insurance Savings Plan in Singapore - Child Education
Child Education – Best Insurance Savings Plan in Singapore

When it comes to making plans for your baby (or babies), no doubt you have already thought of the things you will need to buy – a crib, diapers, clothes, etc.

But have you thought about how much money you will need to send your child to university overseas when they grow up?

Or perhaps you have already made that plan but are wondering if there is a way to save more money?

If so, this article is for you.

A Child Education Plan is a great way to give your child the best education possible. Here are three reasons why:

1. It can help you save up for university fees by using monthly premiums and lump sum payments. This means that even if your child decides not to go abroad after high school graduation, he or she will still be able to afford local tertiary education without any financial burden on the parents.

2. If anything were ever happen like an accident or illness which causes a disruption in financial planning then having this type of policy will ensure there’s enough money left over from insurance policies should they pass away while their children are still young enough to need support.

A Child Education Plan is a savings plan with insurance coverage, where the premium paid is invested in the early years and then paid out as a lump sum upon maturity, which can then be used to fund your child’s education.

There are many Child Education Plans available in Singapore, but not all of them are as quality as each other. If you want to take out a Child Education Plan for your child, always do your research and compare the different plans available.

We have done the work for you and compared the 3 Best Education Savings Plan in Singapore (Updated 2022)

 

Retirement Savings Plans

retirement plan comparison
A board spelling retirement with calculators and pen on the table

You know the saying, ‘save for a rainy day.’ Well, in Singapore, it rains almost every day, so you should probably start planning for your retirement as early as possible. A retirement savings plan is an investment vehicle that can help you do just that.

A retirement savings plan is a long-term investment vehicle intended to help you accumulate savings for your retirement.

The main advantage is that you can opt for a staggered payout as per your requirements. You can also choose to withdraw lump sum amounts at specific intervals or withdraw your entire amount at maturity without paying any charges, depending on what you need.

If you want to buy an annuity plan, there are various options available. Some of the common types are:

Lump-sum payment: In this case, you receive all the accumulated amount in a lump sum payment when the policy matures.

Regular payment: In this type, you will receive regular cash payments from your insurance company over a period of time until it completes the entire annuity amount. The regularity and duration of these payments depend on what you specify at the time of buying your plan.

To find out about this plan, go to our Retirement Plan Product Comparison Singapore page

 

High-Net-Worth Savings Plans

High-Net-Worth Savings Plans - Best Insurance Savings Plan in Singapore

High-Net-Worth Savings Plans is an insurance that combines investment with protection. It has a regular savings version and a single premium version.

The regular savings component is where you have to commit to paying premiums for a certain period (say 10 years). The purpose of this regular savings component is to ensure that you do not stop paying premiums after just 2-3 years (which may be the case for some newer plans). If you stop paying premiums at an early stage, your accumulated investment value will be eroded by charges such as policy administration fees and mortality charges.

The single premium version allows you to invest larger amounts of money into the plan. This one-time payment increases your overall coverage amount and also boosts your total investment value earlier in the plan.

This high-net-worth savings plan is suitable for you if:

  • You prefer a financial product that combines investment with protection.
  • You want to grow your money in stages (by making regular payments over time) or making one large lump sum payment.
  • You are looking for a wealth accumulation plan that offers medium risk/medium returns.

 

Universal Life Savings Plans

Universal Life Savings Plans - Best Insurance Savings Plan in Singapore

A universal life policy is a plan that enables you to leave behind a substantial inheritance after your death. In return, your insurer collects a large upfront lump-sum premium that can run into seven figures.

Universal life insurance policies integrate insurance protection and investment return. Your investment return is based on the rates declared by the insurer (known as “crediting rate”), but these can be changed at the insurer’s discretion.

Universal life insurance policies are not like typical whole life insurance policies. Unlike most life insurance policies, you can change the cash value and sum assured of a universal life policy after it has begun.

You should only purchase a universal life policy, if you have the means to pay your premium without borrowing. This is because you do not want to lose your insurance coverage.

 

The best insurance savings plan in Singapore.

There is no such thing as the best insurance savings plan in Singapore.

Why?

Because there is no “best” financial product for everyone.

There are probably a few other reasons why I don’t like the above question, but I will share just one with you:

For example, if you ask me what the best savings plan is in Singapore, my answer would likely be different from someone else’s. I may prefer a savings plan that offers flexibility in withdrawal dates, while the next person may prefer a plan that provides high guaranteed returns. It all depends on each person’s preferences and circumstances.

It would be like asking me what the best restaurant in Singapore is.

 

Compare, compare and compare insurance plans.

When you are looking for the best insurance savings plan, you can compare all the plans easily.

First, check the premium for the coverage that you need.

Second, if it is a savings plan, check if the return is guaranteed by using their illustrations and also ask for their historical returns.

Third, check if there are any penalties such as high surrender charges.

Fourth, check if there are any unique benefits that you need.

But it’s a pain to visit multiple websites and type in all your personal details again and again. That’s why we have a Compare Endowment Plan Singapore— so you don’t have to!

 

Choose a financial policy that suits the stage of your life.

However, like all investments, there are many to choose from. There are plenty of options available out there, so how do you choose? For that answer, it depends on where you are in life and what your priorities are. Are you just starting out? Have you just gotten married? Do you have kids? Do you want to retire soon? Here are some situations where an insurance savings plan may be beneficial to you. Endowment Plans: for you at any age and for every need

 

Look out for any fine print or unique eligibility criteria.

When you are about to buy an insurance savings plan, you need to know that there are certain things that you should look out for. Remember, getting an insurance product is not a spur of the moment decision and should be well thought of. You need to consider the coverage and the prices of the plans, so you can make a proper choice.

Here are some things that you need to watch out for when buying an insurance savings plan:

Fine Print

Read the fine print before signing up for any insurance policy. Some policies have certain exclusions and conditions that you may not notice at first glance. You should also look out for any unique eligibility criteria so that you will know if you qualify for the policy right away.

Product Summary & Policy Illustration

You need to make sure that the prices mentioned on the product summary and policy illustration are the same as what was promised by your financial advisor. If they’re different, then talk to your advisor and clarify any discrepancy.

 

Understand how your policy is going to work.

When it comes to insurance, a lot of us really don’t know what we’re doing. We hear from our friends that we need life insurance, so we buy some. Or a relative is pestering us to buy health insurance, so we do that too. But there are a few things you should know about insurance before you start buying them. Here’s how to pick the right plan for you, and get the most bang for your buck.

Understand how your policy is going to work

Before you commit to an insurance plan, you should always be clear on the following things:

How much will I pay per month?

What benefits and coverage can I expect?

What are my chances of making a claim? (Read: How likely am I to get sick?)

If you don’t understand how your policy works, do not buy it yet. You can always ask your financial adviser or agent — they should be able to explain it in layman’s terms if they can’t, walk away and find another agent or adviser.

When should you buy an insurance savings plan?

Insurance savings plan is an insurance savings product in Singapore that covers both your savings and some protection in a single policy. You can get life insurance coverage, low risk potential with potential high returns.

Should you buy an insurance savings plan?

When to buy?

If you have medium term goal like save for a car or house downpayment within 10 years.

If you have specific goal like save for children education or retirement planning.

If you want disciplined way of saving, without the need to track your own investment portfolio.

Takeaway: The best insurance savings plans help you prepare for life’s surprises

So there you have it. For people in Singapore who want to know more about selecting the best insurance savings plans, we hope that our article will help you get started. Let us know which ones you’re interested in, and we’ll see if any of them are available to you.

 

Disclaimer
  • MoneyLine.sg is an independent information provider. It is not a bank or financial services provider and cannot give direct financial advice.
  • All Sample Premium results if shown are based on the criteria indicated and MoneyLine.sg does not warrant or guarantee that anything written here is accurate, timely, or relevant to the solution of any problem you may have.
  • Contents are intended as general information only and do not consider financial situation or need of any user or reader, any specific person or group of persons. It does not constitute advice nor does any part of the content constitute an open offer capable of forming the basis of a contract.
  • Promotions indicated on this page may not be accurate and may be subjected to changes by providers without warning. Moneyline.SG does not take responsibility for the accuracy of the information shown in this content.
  • You are recommended to seek financial advice from a qualified financial adviser for product suitability and its latest premium rates quotation before deciding to purchase the product. In the event you choose not to seek advice, you should consider if the product is suitable for you.
  • Without prejudice to the generality of this, MoneyLine.sg Pte Ltd specifically excludes liability for any loss or damage no matter how arising from the use of this Web Portal or of any information or services provided through this web portal.
  • Please read our full Disclaimer on the use of our website.
×