Best Endowment Saving Plans In Singapore To Choose From
In a financial environment where stability and long-term security are paramount, endowment plans remain a popular choice for many Singaporeans seeking a disciplined savings strategy with insurance protection. Whether you’re saving for your child’s education, a future down payment, or simply looking to grow your wealth in a relatively low-risk manner, an endowment plan can offer a structured solution.
This article explores the best endowment saving plans in Singapore, discusses how they work, and outlines what you should consider before committing to one—ensuring you make a well-informed decision that suits your financial goals.
What is an Endowment Plan?
An endowment plan is a type of life insurance policy that combines savings with protection. Over a specified period—typically 10, 15, or 20 years—you make regular premium contributions. Upon maturity, or in the event of death or total permanent disability, a lump sum (comprising guaranteed and non-guaranteed returns) is paid out.
They’re popular for long-term financial goals such as:
- Children’s education
- Retirement planning
- Wealth accumulation with disciplined savings
Key Features of Endowment Plans
Before choosing a plan, it’s vital to understand the common features they typically offer:
- Guaranteed returns: A portion of the maturity value is guaranteed regardless of market performance.
- Non-guaranteed bonuses: These are linked to the insurer’s investment performance and may vary.
- Life insurance coverage: Typically covers death and sometimes total permanent disability.
- Policy tenure options: Ranges from 5 to 25 years or until a certain age.
- Premium term flexibility: Options for single premium, limited pay (e.g., 5 or 10 years), or regular premium throughout policy tenure.
Best Endowment Plans in Singapore (2025 Edition)
Let’s delve into some of the top endowment savings plans offered by insurers in Singapore based on factors such as returns, flexibility, features, and reputation.
1. Great Eastern GREAT Flexi Endowment
Key Highlights:
- Flexible premium terms: 5, 10, 15, or 20 years
- Maturity options: From 10 to 25 years
- Death and total permanent disability (TPD) cover
- Capital guaranteed upon maturity (for policies held to term)
Why It Stands Out:
GREAT Flexi Endowment offers customisability in terms of policy and premium term, making it suitable for people with varying savings horizons. It’s particularly appealing for those looking to align their savings with specific life milestones such as marriage or funding university education.
2. Singlife with Aviva MyChoiceSaver
Key Highlights:
- Choice of policy terms: 10, 15, 18, or 21 years
- Capital guaranteed upon maturity
- Potentially higher non-guaranteed bonuses compared to peers
- Option to include riders for critical illness and premium waivers
Why It Stands Out:
This plan gives policyholders a good balance between protection and wealth accumulation, especially with its strong non-guaranteed returns history. Singlife’s integration of digital tools also makes policy management more accessible and transparent.
3. NTUC Income Gro Capital Ease
Key Highlights:
- Single premium (one-time payment)
- 3-year policy term
- Guaranteed maturity benefit (e.g., up to 3.3% p.a.* for previous tranches)
- 105% of premium paid upon death
Why It Stands Out:
Ideal for conservative investors or those with excess CPF-OA or cash savings, Gro Capital Ease provides a short-term, low-risk savings option with guaranteed returns. It’s particularly popular among retirees or near-retirement individuals who prioritise capital protection with minimal commitment.
4. Prudential PRUActive Saver
Key Highlights:
- Regular savings with premium term options of 5 to 25 years
- Flexible maturity benefits payout: lump sum or yearly income
- Customisable riders for critical illness, early-stage illnesses, etc.
- Capital guaranteed at maturity for some tenure combinations
Why It Stands Out:
The PRUActive Saver allows individuals to choose between lump sum or regular payouts upon maturity. This is particularly useful for those planning for retirement income or funding long-term education expenses.
5. AIA Smart Wealth Builder II
Key Highlights:
- Regular premium plan with 10 to 25-year terms
- Option to defer maturity for greater returns
- Potential bonus accumulation for early participation
- Offers riders for protection flexibility
Why It Stands Out:
AIA’s plan caters to high net worth individuals or disciplined savers who are prepared to commit for the long haul. The deferred maturity option helps maximise returns while offering basic protection, appealing to those eyeing wealth transfer or legacy planning.
Factors to Consider Before Choosing an Endowment Plan
1. Your Financial Goals
Are you saving for a child’s university tuition 15 years from now, or do you need returns within the next 5 years? Endowment plans are not one-size-fits-all; clarity in your objectives will help in choosing the most appropriate plan duration and premium structure.
2. Liquidity Needs
Endowment plans are best suited for disciplined savers. Withdrawing early usually results in losses. If you foresee needing funds urgently, you may want to consider more liquid options or flexible endowment policies with partial surrender features.
3. Risk Appetite
While most endowment plans are low-risk, the non-guaranteed returns are tied to insurer performance. Evaluate your comfort level with potential fluctuations, even though the capital may be guaranteed upon maturity.
4. Bonus History and Insurer Stability
Review the bonus track record of insurers and choose well-capitalised companies with consistent returns. MAS’ Direct Purchase Insurance (DPI) portal and independent financial websites provide good insights.
5. Policy Charges and Riders
Understand the cost structure, especially if you’re adding optional riders. Riders can enhance protection but reduce overall returns.
CPF-Approved Endowment Plans
Several endowment policies are CPF-Approved under the CPF Investment Scheme (CPFIS), allowing you to invest your CPF-OA funds for better returns than the typical 2.5% p.a.
Plans like NTUC Income Gro Capital Ease and selected products from AIA and Great Eastern fall into this category.
Do note: You should carefully evaluate risk, tenure, and projected returns before using CPF monies, as they are essential for retirement adequacy.
Direct Purchase Endowment Plans (DPEPs)
The Monetary Authority of Singapore (MAS) introduced Direct Purchase Insurance plans to allow individuals to buy basic life and endowment insurance directly from insurers without paying commissions.
These plans are typically cheaper and simpler but may not include extensive riders or complex features. They suit those who have done their research or are budget-conscious.
Examples include:
- Income Direct Star Endowment Plan
- AIA Direct – Save Plan
Are Endowment Plans Right For You?
Endowment plans can be highly beneficial if you:
- Value capital protection and moderate, steady returns
- Have a clear financial goal and timeline
- Prefer passive wealth accumulation over managing investments
- Appreciate insurance coverage alongside savings
However, they may not be ideal for:
- Those needing short-term liquidity
- Individuals with higher risk tolerance seeking aggressive growth
- People unsure about committing to long premium terms
Conclusion: Finding the Right Endowment Plan in Singapore
Endowment saving plans serve as a disciplined way to build up a lump sum while providing basic insurance cover. In Singapore, there are numerous options catering to different goals, whether it’s short-term savings, education funding, or retirement planning.
Top picks such as Great Eastern’s Flexi Endowment, Singlife’s MyChoiceSaver, and NTUC Income’s Gro Capital Ease exemplify the variety of choices available—ranging from flexible-term, long-term, to short-term guaranteed plans.
Ultimately, the best endowment plan is one that aligns with your specific financial aspirations, time horizon, and risk tolerance. Consider consulting a licensed financial advisor for a personalised assessment before committing.