What is an Endowment Plan Insurance Policy

What is an Endowment Plan Insurance Policy – We have been on a writing spree on what certain insurance products are.

Today we explore what endowment plans are and how you can choose it as one of the product choices when it comes to getting yourself covered under life insurance and also gaining some form of returns.

We also have other articles on insurance products:

  1. What is term insurance
  2. 8 Tips to consider when Buying Term Insurance in Singapore

If you’re interested to find out more, you can read our articles.

Without further ado, let us look into What is an Endowment Plan Insurance Policy.

*Note: This article does not constitute financial advice. Please speak to a qualified financial adviser.*

What is an Endowment Plan Insurance Policy

For most people who have been through some forms of insurance presentations, you will find this item quite familar.

Persons who want to get covered and at the same time build up some form of savings/investments, the endowment plan insurance policy is a good choice.

In Short, it basically combines savings, investment and protection into one policy.

You get benefits when you either suffer death 0r total permanent disability OR when your policy reaches its maturity date.

This works well for persons who are keen to cover and make some forms of returns.

Basically the premiums are shared between a protection plan and also investing a portion into the markets.

The returns are given back to you when the policy matures in a set number of years.

The convenience of this products makes it popular with many people.

For most people they use Endowment plan insurance policies to achieve:

  1. Savings goals
  2. Retirement
  3. Children’s education expenses


Do you actually need an endowment plan?

When it comes to purchasing a form of insurance or savings policy, one needs to really find out your true needs.

Are you settling down soon? Are you having a child soon? Do you need to cover yourself for critical illnesses?

Your current financial position also matters. When it comes to tailoring the most effective packages, you should find out what is the maximum you can pay per year for such plans.

Also some of such endowment plans are able to give you good flexibility.

Some allow you to have partial withdrawal of cash values.

The insurer you work with will invest your premium into high and low risk assets, so you should also expect some form of bonuses if the investments do well!

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What is an Endowment Plan Insurance Policy