Should we get Endowment Plans?

[iamryan]

1) Should we get Endowment Plans?
2) or is it better to get a term plan instead?
3) Looking to get a better term plan, currently with AVIVA. But which company has a better term plan and coverage for critical illness?

 

[chuckle]

Look into PruTerm Vantage, life time protection of 500k at approx $110 for age 21 anb.
Look into your financial goals and what is your saving habits like?

 

[herzog21]

Look into PruTerm Vantage, life time protection of 500k at approx $110 for age 21 anb.
Look into your financial goals and what is your saving habits like?

u from prudential? lol

 

[chuckle]

Yes i am

 

[chopra]

Buy term invest the rest. Do a search on this forum. Tons of info

 

[iamryan]

buy-term-invest-rest

https://sg.finance.yahoo.com/news/How-buy-term-invest-rest-yahoofinancesgwp-3964547306.html?x=0

 

[maleman]

Already have 2 endowment plans, started 20years ago.
Am 47 years old now.

What should my change be if any?

 

[Middle-C]

endowment is a form of forced savings with better interest rates than banks.
u should get an endowment plan if u have a financial goal in mind, eg child's education,
endowment also help u realise the fulfilment of this goal. *touch wood* in the event of death.
Granted, many would prefer investing their money on their own but there's no guarantee that you would always be there to continue monitoring your trade activities. liquidity is obviously one of considerations w an endowment policies however many insurance companies are addressing this w flexibility in saving plans.

'buy term and invest the rest' essentially there's nothing wrong with it. but you must be absolutely confident in your trading abilities to the extend of predicting market cycles ie the next downfall. else, life policy would ease your worries as it provides you with a peace of mind.

most companies offer very similar plans and conditions. when considering you should look not only at the price, but also at the handling of claims. also look for an active agent to service you

 

[Middle-C]

Already have 2 endowment plans, started 20years ago.
Am 47 years old now.

What should my change be if any?

depends on your current situation and obligations

 

[Keverus]

endowment plans are not really for coverage...

 

[xmodconnects]

endowment is a form of forced savings with better interest rates than banks.
u should get an endowment plan if u have a financial goal in mind, eg child's education,
endowment also help u realise the fulfilment of this goal. *touch wood* in the event of death.
Granted, many would prefer investing their money on their own but there's no guarantee that you would always be there to continue monitoring your trade activities. liquidity is obviously one of considerations w an endowment policies however many insurance companies are addressing this w flexibility in saving plans.

'buy term and invest the rest' essentially there's nothing wrong with it. but you must be absolutely confident in your trading abilities to the extend of predicting market cycles ie the next downfall. else, life policy would ease your worries as it provides you with a peace of mind.

most companies offer very similar plans and conditions. when considering you should look not only at the price, but also at the handling of claims. also look for an active agent to service you

Endowment plan does NOT NOT NOT NOT NOT help you save for your child's education if you are talking about university or private uni education. This is because your child has to eat and live during university, therefore inflation will be higher than the cumulative annual return of your endowment unless you child eat bread drink water and walk to school everyday. The endowment plan will also definitely NOT keep pace with the inflation of school fees especially in private uni. What you will find is that you will lose the value of your ability to provide for your child's education should you buy an endowment plan.

I just had an endowment/ education plan from AIA that matured. The total cumulative return not taking into account inflation for 15 years is -2.5%. If you count inflation at a very low level of 3 % a year its -5.5%.