Many Singaporeans worry about their financial future. A shocking 60% expect to work after retirement, and 44% believe they’ll never achieve financial freedom. With rising inflation and economic uncertainty, relying on traditional savings may not be enough. That’s why endowment plans are gaining popularity—they offer guaranteed returns while combining savings, investment, and insurance.
Endowment plans provide a stable way to grow wealth without high risks. Whether you’re a young professional saving for a big goal, a parent planning for education, or a retiree seeking passive income, there’s a plan that fits your needs. But with so many options, how do you choose?
This guide’ll cover the best short-term and long-term endowment plans, key factors to compare, and expert tips to maximize your returns while minimizing risk.
What is an Endowment Plan & How Does It Work?
An endowment plan is a savings-cum-insurance policy that provides a lump sum payout after a fixed period, making it a structured way to save for long-term financial goals. These plans combine savings, investment, and insurance, offering guaranteed returns upon maturity. Many Singaporeans use endowment plans as a life insurance policy as well as to:
- Build retirement funds
- Secure children’s education
- Achieve financial milestones
Additionally, some may choose a whole life insurance plan with endowment benefits for lifelong coverage while accumulating savings. Unlike traditional savings accounts, endowment plans often provide higher returns, tax advantages, and insurance protection, making them a popular choice for low-risk financial planning.
Types of Endowment Plans
Choosing the right endowment plan depends on your financial goals, risk tolerance, and savings capacity. Here’s how different types of plans compare:
Short-Term vs. Long-Term Plans
Short-term endowment plans (1-5 years) offer quick, predictable returns with lower commitments. They are ideal for those seeking low-risk, short-term growth without locking in funds for decades. However, they generally offer lower yields than long-term plans.
Long-term endowment plans (10+ years) maximize savings potential by offering higher interest rates and potential bonuses. They are well-suited for retirement planning, long-term wealth accumulation, or funding education costs.
Participating vs. Non-Participating Plans
Participating endowment plans allow policyholders to share in the insurer’s profits through non-guaranteed bonuses or dividends. These returns are not guaranteed as they depend on the insurer’s investment performance, but they can increase the total payout over time.
Non-participating endowment plans provide fixed, guaranteed returns with no additional bonuses. These plans are more predictable, making them suitable for risk-averse individuals who want stable, assured payouts.
Single Premium vs. Regular Premium Plans
Single premium plans require a one-time lump sum investment. They start generating returns immediately, making them ideal for individuals with spare cash looking for short-term capital growth.
Regular premium plans allow policyholders to contribute periodically (monthly, quarterly, or annually). This option is better for those who prefer gradual savings and structured financial discipline.
Key Benefits of Endowment Plans
- Guaranteed Capital Protection: Ensures that your principal amount remains intact, making it a safe option for wealth preservation.
- Stable & Predictable Returns: Provides fixed payouts that help in financial planning and meeting long-term goals without market volatility.
- Bonus Payouts for Participating Plans: Potentially increases your returns over time, depending on the insurer’s performance.
- Insurance Coverage: Some plans include life protection benefits, ensuring financial security for your loved ones in case of unforeseen events.
Endowment plans are a reliable and disciplined way to save, ensuring peace of mind and financial stability for the future.
What Differentiates Endowment Plans From Other Savings and Insurance Plans?
You can always use unit trusts, fixed deposits, or investment-linked policies providing ample personal protection in case you encounter any accidents or injuries that disable you from working. However, an endowment plan provides you with the following benefits:
1. Serves Savings and Personal Protection
Endowment plans allow you to save money. Even if you haven’t paid the insurance premium in full, you already have face value protection. Depending on your policy’s terms, these are often guarantees that will pay out as death benefits or health insurance.
2. Provides a Predetermined Amount Upon Maturity
Savers can continue saving more money after paying the plan’s insurance premium and total minimum amount. Doing so gives you high guaranteed yearly cash benefits (for some policies) after an appointed amount of time or a higher predetermined amount upon your plan’s maturity.
Short-term insurance savings plans usually have 1-5 years until they reach maturity. Mid to long-term endowment plans can give you intervals of 10-25 years of savings or even go beyond for some products in some cases.
3. Gives Guaranteed Death Benefits
Some endowment plans include face value protection plus an added death benefit that can be a guaranteed percentage or fixed amounts upon death.
4. Has High Liquidity
Your endowment plan is purely cash that the plan provider can quickly liquidate if you need to withdraw. While you will face enormous deductions for liquidating before maturity, it’s still proof that it’s a highly liquid investment.
Best Short-Term Endowment Plans in Singapore
Short-term endowment plans are ideal for those looking to grow their savings quickly while keeping risk low. These plans typically mature within 1 to 5 years and offer guaranteed returns, making them a safer alternative to volatile investments.
Whether you’re saving for a major purchase, building an emergency fund, or looking for stable short-term gains, the right endowment plan can help you maximize returns with minimal commitment.
Etiqa Growth Assure II
Etiqa Growth Assure II is a one-year endowment plan offering a guaranteed maturity return of 7.38% per annum. Designed for individuals seeking short-term, high-yield savings options, this plan requires a minimum single premium investment of S$10,000.
Key Features:
- Guaranteed Returns: 7.38% p.a. upon maturity after one year.
- Minimum Investment: S$10,000.
- Policy Term: 1 year.
- Death Benefit: 101% of premiums paid.
- No Medical Underwriting: No medical check-up required for enrollment.
- Eligibility: Available when bundled with an eligible Etiqa life protection or wealth accumulation plan.
Why It’s Best:
Etiqa Growth Assure II stands out by offering one of the highest short-term returns available, making it an attractive option for those seeking secure and substantial growth over a brief period. It is best for investors seeking high, guaranteed returns within a short timeframe.
GREAT SP (2-Year Plan)
GREAT SP is a single premium non-participating endowment plan offered by Great Eastern Life. It provides a guaranteed return of 2.00% per annum over a 24-month policy term, making it an attractive option for individuals seeking short-term, stable growth.
Key Features:
- Guaranteed Returns: 2.00% p.a. upon maturity after 24 months.
- Minimum Investment: S$10,000, payable via cash or Supplementary Retirement Scheme (SRS) funds.
- Policy Term: 2 years.
- Capital Guarantee: 100% capital guaranteed upon maturity.
- Insurance Coverage: Provides protection against Death and Total Permanent Disability (TPD) during the policy term.
- No Medical Assessment: Enrollment does not require a medical check-up.
Why It’s Best:
GREAT SP offers a short tenure with guaranteed growth, making it suitable for those seeking a secure investment over a brief period. It is a capital guaranteed endowment plan with an insurance coverage, adding layers of financial security perfect for conservative investors.
NTUC Income Gro Capital Ease
NTUC Income’s Gro Capital Ease is a single premium endowment plan designed to provide guaranteed returns over a short-term period. This plan is ideal for individuals seeking a secure investment option with a lower entry barrier.
Key Features:
- Guaranteed Returns: Enjoy a 3.55%p.a. guaranteed yield at maturity at the end of the policy term.
- Minimum Investment: S$10,000
- Policy Term: Short-term duration, ideal for those seeking quick returns.
- Capital Guarantee: Ensures 100% capital protection upon maturity.
- Insurance Coverage: Provides protection against death and total and permanent disability (TPD before age 70) during the policy term.
- Guaranteed Acceptance: No medical underwriting required; open to Singaporeans or PRs aged 18 to 80.
Why It’s Best:
Gro Capital Ease stands out due to its lower entry barrier, making it accessible to a broader range of investors. The plan’s capital protection and insurance coverage offer additional layers of financial security, appealing to conservative investors seeking stable returns. It is best for those seeking a secure, short-term investment with a lower minimum investment requirement and capital protection.
Best Long-Term Endowment Plans in Singapore
Long-term endowment plans are designed for those looking to build wealth steadily while ensuring financial security. With tenures ranging from 10 to 30 years or more, these plans offer higher potential returns, additional bonuses, and insurance protection.
Singlife Choice Saver
Singlife Choice Saver is a flexible endowment plan designed to help individuals achieve their savings goals with 100% capital guarantee upon maturity. It offers customizable policy terms and premium payment options, allowing policyholders to tailor the plan to their specific financial objectives.
Key Features:
- Returns: Potential non-guaranteed returns with an illustrated investment rate of up to 4.25% per annum.
- Minimum Investment: There is no specified minimum investment amount; premiums are determined based on the chosen sum assured and policy terms.
- Policy Term: Flexible policy durations ranging from 10 to 25 years, or coverage extending up to age 99.
- Premium Payment Options: Variety of premium payment terms, including 5, 10, 12, 15, 18, 20, or 25 years, with the flexibility to choose payment frequencies—monthly, quarterly, semi-annually, or annually.
- Capital Guarantee: Ensures 100% capital protection upon policy maturity, safeguarding the initial investment.
- Insurance Coverage: Provides protection against death and terminal illness throughout the policy term.
- No Medical Underwriting: No medical check-ups required for enrollment, simplifying the application process.
Why It’s Best:
Singlife Choice Saver stands out due to its customizable policy tenure and premium payment terms, making it adaptable to various financial goals and timelines. The plan’s flexibility, combined with capital protection and potential returns, makes it a suitable choice for individuals seeking a tailored savings strategy.
NTUC Income Gro Saver Flex Pro
NTUC Income’s Gro Saver Flex Pro is a flexible insurance savings plan designed to help individuals achieve their financial goals while providing protection coverage. It offers customizable premium and policy terms, allowing policyholders to tailor the plan to their specific needs.
Key Features:
- Returns: Offers potential bonuses based on the performance of the Life Participating Fund, enhancing the policy’s value over time.
- Minimum Investment: Premium amounts are flexible and can be customized based on the policyholder’s financial goals and chosen sum assured.
- Policy Term: Offers a range of policy terms, including 10, 15, 20, 25, or 30 years, or coverage up to age 120, providing flexibility to suit various financial planning horizons.
- Premium Payment: Provides options for single premium (lump sum maturity payout) or regular premium payments, accommodating different budgeting preferences.
- Capital Guarantee: Ensures that policyholders receive back at least all the premiums paid, excluding premiums on optional riders, upon maturity. This guarantee applies to single premium and regular premium policies paid yearly.
- Insurance Coverage: Provides protection against death and terminal illness during the policy term, offering peace of mind alongside savings growth.
- Guaranteed Acceptance: No medical underwriting required, ensuring acceptance regardless of health condition.
Why It’s Best:
Gro Saver Flex Pro stands out for its extensive flexibility in both premium payments and policy terms, allowing individuals to tailor the plan to their unique financial objectives. It is best for individuals seeking a flexible, long-term savings plan with capital protection and the potential for bonuses.
OCBC PremierLife Generation V
OCBC’s PremierLife Generation V is a single premium whole life participating insurance plan designed to provide lifetime monthly payouts starting from the 3rd policy year. It caters to individuals seeking a combination of retirement income and wealth transfer to the next generation.
Key Features:
- Returns: Offers lifetime monthly payouts beginning from the 3rd policy year, comprising guaranteed survival benefits (lifetime monthly income) and non-guaranteed cash bonuses.
- Minimum Investment: Requires a single premium payment, with the minimum amount subject to underwriting and policy details.
- Policy Term: Provides lifetime coverage, ensuring continuous monthly retirement income and a lump sum inheritance for beneficiaries upon the policyholder’s death or diagnosis of a terminal illness.
- Premium Type: Involves a single premium payment, simplifying the investment process without the need for ongoing contributions.
- Capital Guarantee: The policy’s surrender value is guaranteed at 80% of the single premium from day one, with the potential to grow over time as monthly payouts commence from the 3rd policy year.
- Inheritance Benefit: Upon the policyholder’s death or diagnosis of a terminal illness, beneficiaries receive a lump sum payout consisting of 105% of the single premium and any non-guaranteed terminal bonus, less any outstanding debts.
- Financing Option: Policyholders have the option to take up a loan from OCBC to fund part of the insurance premium, offering flexibility in premium financing.
Why It’s Best:
PremierLife Generation V excels in facilitating wealth transfer and providing retirement income. The plan’s structure ensures lifetime monthly payouts, supporting retirement needs, while the lump sum inheritance benefit secures financial support for beneficiaries, making it an ideal solution for comprehensive wealth management.
It is best for individuals seeking a comprehensive solution that combines retirement income with wealth transfer capabilities. Its lifetime monthly payouts, capital guarantees, and inheritance benefits make it a compelling choice for long-term financial planning.
Comparison Table For All The Endowment Plans
| Plan Name | Returns | Minimum Investment | Policy Term | Premium Type | Capital Guarantee | Best For |
| Etiqa Growth Assure II | 7.38% p.a. (1 year) | S$10,000 | 1 year | Single premium | Yes | Highest short-term guaranteed return |
| GREAT SP (2-Year Plan) | 2.00% p.a. (2 years) | S$10,000 | 2 years | Single premium | Yes | Short tenure with capital protection |
| NTUC Income Gro Capital Ease | 1.85% p.a. (3 years) | S$5,000 | 3 years | Single premium | Yes | Low entry barrier, stable returns |
| Singlife Choice Saver | Potential up to 4.25% p.a. | Flexible, based on sum assured | 5-25 years or up to age 99 | Regular or single premium | Yes, upon maturity | Flexible tenure for diverse financial goals |
| NTUC Income Gro Saver Flex Pro | Participating fund bonuses | Customizable based on policy | 10-30 years or up to age up to 120 years | Lump sum or regular contributions | Yes, upon maturity | Long-term savings with extended coverage |
| OCBC PremierLife Generation V | Lifetime monthly payouts + bonus | Single premium (varies) | Lifetime | Single premium | 80% guaranteed from day one | Wealth transfer & retirement income |
For short-term growth, Etiqa Growth Assure II (7.38% p.a.) and GREAT SP (2.00% p.a.) deliver strong returns. If you want a low-risk entry, the NTUC Income Gro Capital Ease is a great choice. For long-term flexibility, Singlife Choice Saver and Gro Saver Flex Pro excel, while OCBC PremierLife Generation V is ideal for retirement income and wealth transfer.
Conclusion
Endowment plans offer a reliable way to achieve financial security through structured savings and guaranteed returns. Whether for short-term growth or long-term wealth accumulation, these plans provide flexibility, insurance protection, and capital stability. Choosing the right plan based on individual goals can ensure financial peace of mind for the future.
Key takeaways:
- Endowment plans provide a disciplined way to save with guaranteed returns, ensuring financial security while protecting the total premiums paid over the policy term.
- Whether short-term (1-5 years) or long-term (10+ years), plans cater to various goals like retirement, education, or wealth accumulation, with structured contributions based on total annual premiums paid.
- Many endowment plans offer life coverage, capital guarantees, and potential bonuses, ensuring both financial growth and security.
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