Endowment Series Four: Singapore Life's Short Term Endowment Plan 2019
 
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Endowment Series Four: Singapore Life's Short Term Endowment Plan 2019

Kenneth Fong
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The lead up to Singapore’s 54th birthday has seen a slew of SG54 NDP deals and promotions on almost everything you can think of.

Including the recent $54 Huawei phone promotion that created more anger and frustration than anything…

Huawei And CPF Have In Common
Source: @wakeupsingapore | Instagram

Ouch.

Well, it’s okay if you missed that promo because PolicyPal and Singapore Life have an SG54 collaboration of their own: a 1.54% rebate on a 3 or 5-year short-term endowment plan which offers up to 2.38% returns per annum.

And that’s way better than any $54 smartphone because the returns you’re getting is higher than any bank’s fixed deposit rates and even what the latest Singapore Savings Bond (SSB) would give you.


TL;DR: Is The Singapore Life Endowment Series Four Worth It?

The Singapore Life Endowment Series Four is a single premium non-par savings plan that is available while stocks last.

Key things to note:

  1. Non-Accidental Death benefit: pays out 101% of your single premium or surrender value, whichever is higher, upon your demise
  2. Accidental Death benefit: pays out 105% of your single premium or surrender value, whichever is higher, upon your demise
  3. Guaranteed returns: 2.25% per annum over 3 years (106.90% of your single premium) or 2.38% per annum over 5 years (112.48% of your single premium)
  4. Single premium payment: Minimum of S$5,000, capped at S$500,000
  5. Policy protection: up to specified limits by SDIC

PolicyPal X Singapore Life SG54 Promo

  • Valid for single premium payment of S$5,000 only
  • Earn 1.54% rebate (paid to PolicyPal account as P$ credits within 14 days of policy issuance) for first 100 endowment purchases between 5 to 11 August 2019

Note: if you’d like to be given priority access to the 1.54% rebate + 3 or 5-year endowment plan, simply leave your details here to express interest.

PolicyPal X Singapore Life Endowment Series Four

Disclaimer: We are NOT sponsored. All information shared here is to help YOU make smarter financial decisions! And if you’re sharing your details with PolicyPal and Singapore Life, know that your info will definitely be subjected to their marketing efforts. #justsaying

A Closer Look At Singapore Life Endowment Series Four

Singapore Life Logo

 

Pros Of Endowment Series Four

  • Capital guaranteed if held till maturity
  • You will get back up to 112.48% of your principal sum
  • A relatively small sum of money is required – minimum S$5,000

Cons Of Singapore Life Endowment Series Four

  • You will incur a surrender charge if you choose to surrender the policy before maturity

And because we’re looking at the PolicyPal x Singapore Life collaboration…

PolicyPal X Singapore Life Endowment Series Four Mechanics
Source: PolicyPal

Pros Of PolicyPal X Singapore Life Endowment Series Four

  • Same as if you bought a regular Endowment Series Four
  • Can purchase it through a few clicks on the PolicyPal app
  • Convenient payment via FAST transfer or PayNow through PolicyPal

Cons Of PolicyPal X Singapore Life Endowment Series Four

  • You will incur a surrender charge if you choose to surrender the policy before maturity
  • You’re limited to a maximum S$5,000 single premium which qualifies for the 1.54% rebate
  • The rebate will be paid to your PolicyPal account as P$ credits which are not encashable or transferrable

Note: if you’d like to find out more about Singapore Life Endowment Series Four, click here to read more.

How Do I Purchase Singapore Life Endowment Series Four

This endowment plan is available for purchase through Singapore Life. But if you’d like to enjoy the additional 1.54% rebate, you’ll have to purchase it through the PolicyPal app.

Take note that the 1.54% rebate is only valid for endowment plans purchased between 5 to 11 August 2019 (payment by 11:59 PM, 11 August 2019) through the PolicyPal app.

The rebate will be paid to your PolicyPal account in the form of P$ credits within 14 days from the email notification of policy issuance.

Endowment Series Four In Comparison To Singapore Savings Bonds (SSBs)

When it comes to low-risk investments, the benchmark that most Singaporeans have these days would be SSBs.

SSB Logo

Looking at the current SSB’s average return per year (bond id: GX1908E, issued 1 August 2019), holding it for three years only yields an average return of 1.68% per annum. Even if you held onto it for five years, the SSB would only yield an average return of 1.79% per annum.

Cat Unimpressed With SSB
Pictured above: I’m not actually a cat but you get the picture…

This is as compared to 2.25% per annum over 3 years and 2.38% per annum over 5 years, depending on the term you choose to purchase your Endowment Series Four for (what a mouthful).

Basically, the returns for Singapore Life’s Endowment Series Four’s 3 and 5-year options both beat SSB’s hands down.

I’ve said this before and I’ll say it again, your capital with Singapore Life is SDIC guaranteed, but SSBs have the edge here because they’re government-backed.

Also, you’ve got to be really sure that you won’t need the money anytime soon because you’ll incur a surrender charge if you suddenly decide that you need your money before the 3 or 5-year maturity is up.

But with SSBs, you pay a S$2 transaction fee and you’ll get your principal and any interest accrued by the 2nd business day of the following month.

Recommended Read: When Should You Choose Fixed Deposits over Singapore Savings Bonds (SSB)?

What If I Don’t Have $5,000 To Buy Into Singapore Life’s Endowment Series Four?

Simpsons No Money
source: The Simpsons | giphy

Unlike the other endowment plans we’ve covered before, $5,000 should be within the reach of most Singaporeans. You just need to know how to allocate your monthly salary.

But if you’re still saving up and making your way there, fret not.

There’re always other alternatives if you’re looking for low-risk alternatives to invest your money. However, the options listed here all come with different lock-in periods, so choose wisely and consider when you’ll need that money you’re locking away:

  • This month’s SSB with a minimum cash outlay of S$500, no early termination charges. More details here.
  • Voluntary cash top-up to CPF Ordinary Account (2.5% to 3.5%), Special Account (4% to 5%), and/or Medisave Account (4% to 5%). More details here.
  • CIMB Fixed Deposits at 1.9% p.a. More details here.
  • High yield interest rate savings account. More details here.
  • Check out alternative investment options in this guide here.

Should I Buy Singapore Life’s Endowment Series Four?

As with any other endowment plan, the Endowment Series Four is also a tranche product and is available while stocks last.

With this upcoming PolicyPal x Singapore Life 1.54% rebate promotion, it might be the additional sweetener for those looking to park their funds in an endowment plan.

But seriously, all of these factors shouldn’t be part of your consideration when evaluating an endowment plan. You should always read the terms and conditions carefully, and consider your investment horizon before you get unnecessarily penalised when you choose to surrender your plan before maturity.

Also, the 1.54% rebate will be given in the form of P$ credits, and are not encashable or transferrable. So unless you’re an active user of PolicyPal, this rebate might not be all that great after all…

PolicyPal Logo

Remember: nobody cares about your money more than you do.

Except maybe your parents.

They love you more than anything in the world.

When was the last time you gave your mom or dad a call to ask them about their day? Go ahead and give them a call. Your folks will love it, even if they say they don’t. 🙂

Whether you love or hate our content... WE WANT TO HEAR WHAT YOU THINK!

About Kenneth Fong
Editor of Seedly's blog. Owner of a 4-room HDB BTO and married to a financial clutz. Probably the closest to an adult you can find on the Seedly team.
You can contribute your thoughts like Kenneth Fong here.

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