Endownment plan vs SSB

[camholicx]

Can someone advise me if a normal 10yrs endowment plan vs SSB.

Which is better

 

[dork32]

Can someone advise me if a normal 10yrs endowment plan vs SSB.

Which is better

coverage
ssb no coverage
endowment comes with insurance,

return
ssb has fixed return
endowment have guaranteed and non guaranteed. with non guaranteed usually higher return

surrender
ssb surrender fee $2
endowment, if you do not hold to maturity, you are going to get hit big time.
if you surrender within 2 years, you may lose even more

period.
ssb 10 years
endowment, you get decide. but usually more than 10 years.

payout
ssb every 6 months
endowment may or may not give payouts.

payment
sbb you decide how much you want to put in each month. 0 also can
endowment fixed amount every month, quarter, year unless you go single premium.

amount to buy
ssb fixed by garmen every month. may be less than what you want to buy. max 100k
endowment you decide how much you want to put in.

both also got some plus points.
i prefer ssb.

 

[Mecisteus]

You can buy SSB and some term insurance. You got a similar plan like an endowment.

No worries about lousy returns, you can redeem anytime and you don't have to enrich the pockets of any insurance agents.

 

[JuniorLion]

Not "enriching" someone else is not the main objective. But finding the best for yourself is.

 

[cscs3]

Can someone advise me if a normal 10yrs endowment plan vs SSB.

Which is better

I would go for SSB.
1. Interest is pay out every year.
2. You can terminate almost anytime.

If you think of insurance coverage. Don't think Endownment cover well.

 

[mSnooze]

If you are looking at short term then SSB better. Short term Endowment lose definitely.

 

[smart_alex]

is there any value in endowment plan?

feel like cancel it, I kow most people say endowment is waste money, but is it useful in some scenario?

 

[Mecisteus]

is there any value in endowment plan?

feel like cancel it, I kow most people say endowment is waste money, but is it useful in some scenario?

The death values are quite irrelevant.

You should post the surrender values.

 

[akwl88]

is there any value in endowment plan?

feel like cancel it, I kow most people say endowment is waste money, but is it useful in some scenario?

most endowments plans are crap

 

[limster]

is there any value in endowment plan?

feel like cancel it, I kow most people say endowment is waste money, but is it useful in some scenario?

Its just mathematics. You take the guaranteed surrender values and calculate the CAGR. Then you compare the guaranteed CAGR to SSB returns.

Some agents who are lacking in integrity will compare the 'non-guaranteed returns' of their products to SSB and claim their product gives much higher return, but when you look at the guaranteed return, SSB is higher.

If you don't know how to calculate CAGR, its more worthwhile to watch some youtube videos to learn, rather than to watch youtube video on trading strategies

 

[$ingaporean]

Just sharing my thoughts...

Do you foresee you need the principal during the 10 years? Or the interest?

Do you have other assets to draw from during the 10 years?

If you don't need to touch the money at all and be happy to see its value increase, then endowment is better for you since the return is likely higher than ssb. At least this is what I see for mine.

 

[$ingaporean]

Its just mathematics. You take the guaranteed surrender values and calculate the CAGR. Then you compare the guaranteed CAGR to SSB returns.

Some agents who are lacking in integrity will compare the 'non-guaranteed returns' of their products to SSB and claim their product gives much higher return, but when you look at the guaranteed return, SSB is higher.

If you don't know how to calculate CAGR, its more worthwhile to watch some youtube videos to learn, rather than to watch youtube video on trading strategies

I think a better way to calculate is to based on historical how much has insurer declared the non guarantee part, and then use it as a basis to calculate.

By taking either totally guaranteed only or both guaranteed and non-guaranteed are not too accurate.

 

[McFadden]

ssb need open cdp account.cdp account got some charges?

 

[BBCWatcher]

ssb need open cdp account.cdp account got some charges?

No, there are no charges associated with CDP accounts, at least not for SSB holdings.

 

[limster]

I think a better way to calculate is to based on historical how much has insurer declared the non guarantee part, and then use it as a basis to calculate.

By taking either totally guaranteed only or both guaranteed and non-guaranteed are not too accurate.

if you want to calculate historical, then you should compare endowment historical return with STI ETF return. STI ETF always wins because the endowment will not give you the full returns from the participating fund. Instead fees and admin charges will be subtracted and counted as 'profit' which is given to shareholders of the insurance company in the forum of dividends (and this occurs whether or not the participating fund does well)

Disclaimer: Vested in Aviva and Prudential (and indirectly GE though my OCBC holdings). Pls buy policies from those companies only, thanks.

 

[tangent314]

Don't know why I have to keep repeating this. Yes, endowment plans are generally crap compared to self-investing, but that doesn't mean that you should surrender it when you are in the middle of it. Most of the time if you are already stuck in an endowment plan, it's best to see it through all the way to maturity. Post your full RBI and we can calculate that for you.

 

[smart_alex]

The death values are quite irrelevant.

You should post the surrender values.

the surrender value is the same

This is my surrender value table

This is my maturity table

That time when I buy this plan is because it is capital gurantee and it do better than normal bank

My plan is GE flexi goal, currently paid for 1 year only, should I continue to treat it as a diversify investment? or should I just end it?

 

[smart_alex]

Its just mathematics. You take the guaranteed surrender values and calculate the CAGR. Then you compare the guaranteed CAGR to SSB returns.

Some agents who are lacking in integrity will compare the 'non-guaranteed returns' of their products to SSB and claim their product gives much higher return, but when you look at the guaranteed return, SSB is higher.

If you don't know how to calculate CAGR, its more worthwhile to watch some youtube videos to learn, rather than to watch youtube video on trading strategies

The non guarantee of 3.25% is it highly possible will achieve?

actually I am quite happy with the 3.25% column if it can achieve that easily

 

[tangent314]

The non guarantee of 3.25% is it highly possible will achieve?

https://deluxeforums.hardwarezone.c...ers-par-fund-cagr-fy2008-onwards-5430385.html

 

[moejoseph]

The non guarantee of 3.25% is it highly possible will achieve?

actually I am quite happy with the 3.25% column if it can achieve that easily

Usually most insurers should be able to achieve it, unless the market for that year is really bad.

Insurers will usually keep anything that exceed these percentage to tide over years when they are not earning as much. So as to give a constant return for some companies, while some you can see jumps between years.

Tried my best to explain the above in a more layman term