Best Short-term Endowment Plans in Singapore

7 Best Short-Term Endowment Plans in Singapore 2025

Want to grow your savings while staying protected from low-risk yet impactful events? According to OCBC’s Financial Wellness Index released on November 8, 2023, 79% of Singaporeans had investments in 2023, down from 85% the previous year. This dip highlights the need for reliable investment options like short-term endowment plans.

Short-term endowment plans combine insurance with savings, offering guaranteed returns over a shorter period. These plans are ideal for those aiming to grow their savings while enjoying some insurance protection.

Endowment insurance products, as noted by Moneysense.gov, are marketed as savings plans to meet specific financial goals, typically lasting from 1 to 6 years. In this article, you’ll discover the best short-term endowment plans in Singapore and how they can help achieve your financial objectives efficiently.

Here are seven popular short-term endowment plans in Singapore, each offering unique benefits and features to help you grow your savings while ensuring financial security.

At a Glance

Plan

Minimum Investment

Policy Term

Guaranteed Returns

Key Features

Etiqa Tiq 3-Year Endowment Plan

S$5,000 – S$1,000,000

3 years

3.56% p.a.

  • 101% life protection of single premium
  • Easy online application
  • Guaranteed acceptance

HSBC Life Savings Protector II

Not disclosed

3-5 years

4.25% p.a.

  • Guaranteed death benefit of at least 115%
  • Death benefit coverage

NTUC Income Gro Capital Ease

S$10,000 (online); S$20,000 (advisor)

3 years

3.38% p.a.

  • Death and TPD coverage
  • Guaranteed maturity benefit of 110.49%

Great Eastern’s GREAT SP Series 12

S$10,000

2 years

3.20% p.a.

  • Death and TPD coverage
  • 100% capital guaranteed

DBS Savvy Endowment 16

S$5,000

3 years

3.40% p.a. (guaranteed), 0.14% p.a. (non-guaranteed)

  • Death coverage
  • 101% of single premium paid
  • No health check-up required

Singlife Secure Saver VII

S$20,000

2 years

3.40% p.a.

  • 105% of single premium paid
  • Guaranteed issuance, no medical check-up required

Manulife Goal 2024 (II)

S$5,000

2 years

3.50% p.a. (guaranteed), 0.32% p.a. (non-guaranteed)

  • 101% of single premium paid
  • No health check-up required


The HSBC Life Savings Protector II offers the highest guaranteed returns at 4.25% p.a. over 3-5 years with strong death benefits. For a shorter commitment, NTUC Income’s Gro Capital Ease and DBS Savvy Endowment 16 provide competitive returns around 3.4% p.a. with comprehensive coverage and easy application processes,

etiqa

1. Etiqa Tiq 3-Year Endowment Plan

While it has one of the highest minimum payments for an endowment plan, the Etiqa Tiq 3-Year Endowment Plan has a short policy term of 3 years plus a great death benefit. It offers a straightforward way to save and earn more interest with guaranteed maturity returns of 3.56% per annum. This plan also boasts guaranteed acceptance regardless of health condition, easy online application, and management via the Tiq by Etiqa app, making it a convenient and accessible option for all investors.

  • Minimum payment: Start saving from as low as S$5,000 up to S$1,000,000
  • Policy term: 3 years with a 101% life protection of single premium
  • Maturity benefit: 3.56% p.a. return at maturity. At the end of the 3-year term, the policyholder receives a total return of 11.07%, calculated based on guaranteed annual returns.
  • Insurance: Life protection coverage

hsbc life

2. HSBC Life Savings Protector II

HSBC Life Savings Protector II provides assurance to your loved ones by protecting your savings while offering the potential for higher returns. This plan is designed to help you achieve significant financial goals, such as planning for retirement or funding your children’s education, with the flexibility to choose a premium payment term that fits your needs.

  • Minimum payment: Not disclosed
  • Policy term: 3-5 years; 
  • Maturity benefit: 4.25% p.a. return at maturity. The guaranteed death benefit in the first year is at least 115% of the guaranteed maturity benefit from the start of the policy.
  • Insurance: Death benefit coverage

ntuc income

3. NTUC Income Gro Capital Ease

NTUC Income Gro Capital Ease is a short-term endowment plan designed to maximize your wealth over a three-year period. This plan offers a guaranteed maturity benefit and flexible payment options, making it an attractive choice for those looking to grow their savings quickly and securely.

  • Minimum payment: 
    • Online Purchases: Starts at S$10,000 payable via PayNow QR, eGIRO, or Supplementary Retirement Scheme (SRS) funds
    • Through Financial Adviser: Starts at S$20,000
  • Policy term: 3 years; Includes protection against death and total permanent disability (TPD before age 70)
  • Maturity benefit: Guaranteed yield of 3.38% p.a. At the end of the three-year policy term, enjoy a guaranteed maturity benefit of 110.49% of the single premium
  • Insurance: Life protection Death and total permanent disability coverage

ocbc

4. Great Eastern’s GREAT SP Series 12

Great Eastern’s GREAT SP Series 12 is a 24-month single premium insurance plan designed to offer guaranteed returns and capital protection. This plan is ideal for those seeking a secure investment with insurance coverage for added peace of mind.

  • Minimum payment: Starts at S$10,000
  • Policy term: 2 years; includes Death and Total and Permanent Disability benefit
  • Maturity benefit: Guaranteed yield of 3.20% p.a. 100% capital guaranteed upon maturity.
  • Insurance: Death and Total and Permanent Disability coverage

DBS logo

5. DBS Savvy Endowment 16

DBS Savvy Endowment 16 is a flexible and easy-to-apply short-term endowment plan that offers potential returns and capital protection over a three-year period. This plan is ideal for those looking to grow their savings with minimal hassle while enjoying insurance coverage.

  • Minimum payment: Starts at S$5,000
  • Policy term: 3 years; includes Death coverage, providing 101% of the single premium paid
  • Maturity benefit: Guaranteed yield of 3.40% p.a. 100% capital guaranteed upon maturity. 0.14% p.a. Non-guaranteed potential return.
  • Insurance: Death coverage, No health check-up is required for application

6. Singlife Secure Saver VII

Singlife Secure Saver VII is a single premium, non-participating endowment plan designed to offer secure and stable returns over a short duration. This plan is perfect for those looking to grow their wealth quickly and safely within a span of two years.

  • Minimum payment: Starts at S$20,000
  • Policy term: 2 years; includes Death coverage, providing 105% of the single premium paid
  • Maturity benefit: Guaranteed yield of 3.40% p.a. Get back 106.92% of your investment amount at the end of two years, provided no surrender or claims were made during the policy term.
  • Insurance: Death coverage; Guaranteed issuance without requiring a medical check-up.

Manulife

7. Manulife Goal 2024 (II)

Manulife Goal 2024 (II) is a two-year single premium endowment plan designed to help you achieve your financial goals with guaranteed returns and additional insurance coverage. This plan is perfect for those looking for a short-term investment with the potential for higher returns.

  • Minimum payment: Starts at S$5,000, payable via cash or Supplementary Retirement Scheme (SRS) funds.
  • Policy term: 2 years; includes Death coverage, providing 101% of the single premium paid
  • Maturity benefit: Guaranteed yield of 3.50% p.a. 0.32% p.a. non-guaranteed maturity bonus
  • Insurance: Death coverage; no health check-up required.

Short Term Plans are Perfect for People Who Want:

  • Stability: Insurance policies give you peace of mind regarding devastating insured events. Plus, you get a cash benefit after a certain period for investing money.
  • Compulsory Savings Option With Benefits: Having a mandatory monthly savings deposit helps you have a rainy-day fund. Your insurance against certain events is a great money-saving bonus to have.
  • An Investment With Guaranteed Life Protection: If you want to grow enough cash and wish you can preserve your investment and give it to your surviving family upon an insured event, short-term endowment plans are perfect for you.

Short-Term Endowments Might Be a Bad Idea For People Who:

  • Don’t Need Insurance: You’re better off investing with growth and hedge funds rather than an endowment plan if you don’t want to pay for the insurance side of things.
  • Want High Return on Investments: Endowment plans only offer humble returns. If you have a higher risk appetite, other specialized funds can work better for your financing goals.
  • Have Financial Commitment Problems: While no fund will ever promise a get-rich-quick result, you’ll need to wait and be patient in receiving your returns. If you’re impatient, endowment plans and other investment products might not be for you.
  • You Aren’t Confident You’ll Profit or Benefit: All investment products carry huge risk even with short-term endowment plans and other stable investments. If you aren’t confident or unwilling to take on any risk amount, it’s best to stay away from endowment plans.

Key Factors to Consider When Choosing a Short-Term Endowment Plan

When selecting a short-term endowment plan, it’s crucial to evaluate several key factors to ensure the plan aligns with your financial goals and needs.

Coverage Details

When selecting a short-term endowment plan, it’s essential to understand the coverage details. These plans often provide protection in case of death, terminal illness, and total permanent disability. The coverage amount and conditions vary by plan, so ensure you choose one that aligns with your needs for financial security during unexpected events.

Example:

  • Death Coverage: Provides a payout to beneficiaries in the event of the policyholder’s death.
  • Terminal Illness Coverage: Offers financial support if the policyholder is diagnosed with a terminal illness.
  • Total Permanent Disability Coverage: Ensures a payout if the policyholder becomes permanently disabled and unable to work.

Guaranteed vs. Non-Guaranteed Returns

Evaluate the balance between guaranteed and non-guaranteed returns. Guaranteed returns offer a predictable payout, ensuring a minimum return on your investment. Non-guaranteed returns depend on the insurer’s investment performance, which means the actual benefits payable will vary based on the market conditions and future performance. Understanding this balance helps in setting realistic expectations for your financial growth.

Eligibility Criteria and Payment Options

Review the eligibility criteria and payment options for the plan. Eligibility requirements might include age and health conditions. Payment options can be either a single lump-sum payment or regular premiums paid monthly, quarterly, or annually. Choose a plan with payment terms that suit your financial situation and long-term goals.

Surrender Value and Withdrawal Implications

Consider the surrender value and implications of early withdrawal. If you decide to terminate the policy early, the amount you receive is known as the surrender value. Surrendering the plan before maturity might result in receiving less than the initial investment or no returns at all. It’s important to understand these implications to avoid financial loss and to choose a plan with favorable terms for unexpected needs.

In a participating policy, the surrender value comprises two parts: a guaranteed portion and a non-guaranteed portion.

Capital Guarantees and Risk Tolerance

Assess the capital guarantees provided by the plan and your risk tolerance. Some endowment plans guarantee the return of the initial capital at maturity, ensuring that you do not lose your principal investment. Understanding your risk tolerance helps in choosing a plan that offers the right balance of security and potential returns for your financial comfort.

Tips for Maximizing Returns from Short-Term Endowment Plans

Maximizing returns from short-term endowment plans requires strategic planning and disciplined financial management. Here are some expert tips to help you get the most out of your investment:

Maintain Steady Income

According to financial experts from DBS, it is crucial to ensure you have a steady flow of income to pay the premiums regularly. This helps avoid the risk of surrendering the policy prematurely, which can lead to financial losses and reduced benefits.

Understand the Benefits

Endowment life insurance can be worth it if you want to combine temporary life insurance policy with a guaranteed payout while you’re still alive. Financial experts from Investopedia suggest that this approach covers multiple financial needs in a safe, predictable fashion, making it a valuable addition to your financial portfolio.

Choose the Right Plan

Select a plan that aligns with your financial goals and timeline. Consider factors such as the policy term, guaranteed returns, and additional benefits like insurance coverage. Short-term plans with high guaranteed returns and flexible payment options can provide significant financial advantages.

Monitor and Review

Regularly review your endowment plan to ensure it continues to meet your financial needs. Adjustments may be necessary if your financial situation or goals change. Staying informed about your investment helps maximize returns and ensures you remain on track to achieve your objectives.

Leverage Additional Benefits

Some plans offer additional benefits such as bonuses or non-guaranteed returns. Make sure to understand these features and how they can enhance your overall returns. Utilizing all available benefits can significantly boost your investment outcome.

Frequently Asked Questions (FAQs)

1. What is the minimum investment required for short-term endowment plans?

The minimum investment required varies by plan. For example, the Etiqa Tiq 3-Year Endowment Plan starts at S$5,000, while NTUC Income Gro Capital Ease requires a minimum of S$10,000 for online purchases and S$20,000 through a financial advisor. Other plans, like Singlife Secure Saver VII, have a higher minimum investment of S$20,000.

2. Can foreigners invest in these plans?

Yes, foreigners can invest in short-term endowment plans. Eligibility criteria typically include holding a valid work permit, employment pass, or social pass. It’s advisable to check specific plan details as requirements may vary between providers.

3. What happens if I need to withdraw funds before the policy matures?

Withdrawing funds before the policy matures usually involves high costs and results in a surrender value that is less than the total premiums paid, potentially leading to a financial loss. It’s important to commit to the full policy term to maximize returns and avoid penalties associated with early withdrawal.

4. How do guaranteed and non-guaranteed returns work?

Guaranteed returns are fixed amounts promised by the insurer, providing a predictable outcome for your investment. Non-guaranteed returns depend on the performance of the insurer’s investments and can vary. They are often provided in addition to the guaranteed returns, enhancing the total maturity benefit.

Here’s an example:

Imagine you invest in a 3-year short-term endowment plan with a single premium of S$10,000. The plan offers a guaranteed return of 3% per annum and potential non-guaranteed returns based on the insurer’s investment performance. The guaranteed returns ensure you earn 3% annually, totaling S$900 over three years. If the insurer’s investments perform well, you might also earn an additional 0.5% annually in non-guaranteed returns, adding S$150 over three years. At maturity, you receive your initial investment of S$10,000 plus the guaranteed returns of S$900 and the non-guaranteed returns of S$150, totaling S$11,050.

Conclusion

Short-term endowment plans offer a strategic way to grow your savings while ensuring financial protection. By understanding the various options and carefully selecting a plan that aligns with your goals, you can maximize your returns and achieve financial stability. Each of these plans provides unique benefits, making them suitable for different financial needs and preferences.

Key takeaways:

  • In addition to savings, endowment plans include coverage for death, terminal illness, and total permanent disability.
  • Minimum investment requirements vary, starting as low as S$5,000 for some plans, making endowment plans accessible for different financial capacities.
  • Policy terms typically range from 2 to 3 years, ideal for achieving short-term financial goals without long-term commitments.

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