I've bought one before. NTUC 7 year plan, guaranteed 2.75% p.a. interest compounded. When it matured and I got my money back, the savings interest rate was nearly 0%. So it turned out ok.
All these 'guaranteed return plans', the insurer is basically borrowing money from you. The insurer is hoping to hedge his borrowing costs against interest rate rise, and hoping that rising inflation will reduce the amount ("value") he has to repay you.
All these 'guaranteed return plans', the insurer is basically borrowing money from you. The insurer is hoping to hedge his borrowing costs against interest rate rise, and hoping that rising inflation will reduce the amount ("value") he has to repay you.
