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6 Best Short-term Endowment Plans In Singapore 2022


What's next if you like the notion of an endowment plan? Of course, you want to find the greatest one! You are spending your hard-earned money, so you will want to make the finest selection possible (with no regrets in the future).

Endowment plans, on the other hand, come in many forms and sizes... and there is no one-size-fits-all solution. The only way to figure out which one is best for you is to compare all of the different plans offered by different insurance providers.

The following article provides a comprehensive guide to endowment plans and compares short-term endowment programs using the following table, which is not exhaustive.

Note, at the time of writing, these endowment plans are undersubscribed.

What is an endowment plan?

An endowment plan bridges the gap between the investor and the investment. You get protection against numerous covered occurrences as well as a maturity term with a cash benefit pay-out.

Endowment plans have made or broken even for many Singaporean investors, making them a great insurance and investment fund combination.

Endowment plans have several maturity periods, each with its own set of hazards. While short-term plans have the biggest risk of the 3, you can get your money on time and perhaps with insurer-guaranteed returns.

Long-term plans, on the other hand, let your funds grow for a longer period of time, allowing insurers to provide you better guaranteed returns than short- and mid-term endowments.

For short-term endowment, you acquire several types of insurance for different eventualities, and your savings maturity term is usually 2 to 5 years. They are mostly single premiums, which means you only need to deposit funds once at the start of the policy and wait till the end of the policy to receive your guaranteed returns.

For mid-term endowment, you can insure numerous events, and the maturity term of your funds is usually between 10 to 15 years.

Last but not least, you can protect yourself against several insured occurrences with a long-term endowment. Often, your savings maturation period falls during near-retirement or retirement years (60 to 65 years).

Why you should not buy a short-term endowment plan

You should not buy a short-term endowment plan if you fall into the following categories.

If you believe that insurance is not necessary and you do not want to pay for insurance, you are better off investing in equities and fixed income securities than an endowment plan.

Next, if you want a high return on your investment, you should avoid endowment arrangements.

Other speciality funds may be a better fit for your financing needs if you have a larger risk appetite. While no fund can guarantee you will become rich soon, you will have to wait and be patient for your returns.

Endowment plans and other financial products may not be for you if you are impatient or have financial commitment issues.

If you're looking to grow your wealth in a sustainable and effective manner, it would be smart to work with a financial professional.

Contrary to their reputation for pushy sales tactics, financial advisers help new investors cut through the noise. They can arrange your investments and build a financial plan that helps ensure you will meet your financial goals in a sustainable manner.

With regards to investment planning, we do the following:

  • Identify your current life stage

  • Identify your goals, needs and wants

  • Find out how much you will need for each need, wants, and goals

  • Plan how you can achieve these goals in a sustainable manner

  • Build and optimise your financial investments

To help you take control of your personal finance, Techiya offers a free comprehensive and personal financial assessment worth over $200 for individuals, just contact us!

Last but not least, all investment products, including short-term endowment plans and other secure investments, come with risk, albeit at a low one.

To get a better idea of your investment risk profile, you can check out this risk profile calculator.

Your risk profile determines the type of assets you can invest in as well as a recommended portfolio allocation for each of these assets

Why you should buy a short-term endowment plan

Short-term endowment plans provide you with shorter maturity periods and assured returns on your investment. Having a financial aim other than simply accumulating wealth is beneficial. A short-term endowment strategy is ideal for the majority of Singaporeans, including yourself.

You should buy a short-term endowment plan for the following purposes. For instance, every year, the cost of a university education rises dramatically.

You can increase your money enough to pay for a complete course or beat inflation with a short-term endowment plan.

If you decide to BTO and/or get married in the next few years. You could use the payout from a short-term endowment policy to pay for your down payment and reduce your wedding costs.

If you are planning for retirement, your life plan may provide you with a sizable endowment when you retire. Short-term endowment plans can be used to supplement it.

More importantly, short-term endowment plans can force you to save. If you are awful at saving money, short-term endowment plans can force you to do so while also providing you with protection.

Lastly, relative to fixed deposits and savings accounts, Short-term endowment plans tend to deliver slightly higher returns and provide insurance coverage.

What are other conservative investment alternatives?

If you are looking to generate some returns within a short period of time, some other conservative investment alternatives could include regular savings plans and fixed deposit accounts.

Regular savings plans require depositing a set amount of money on a regular basis, generally once a month.

Your money will be invested in blue-chip stocks, REITs, and/or ETFs under the plan.

These plans employ a strategy known as dollar-cost averaging to shield investors from the majority of stock market volatility.

This strategy entails spending the same amount of money on a set and consistent timetable, regardless of market results.

As you will be exposed to the market on a regular basis, the idea is that you will be able to ride out the market's ups and downs in the long run and profit from the market's upward trend.

Beginner investors or those who do not have the time or patience to follow the stock market and respond to swings may hence benefit from a monthly savings strategy.

However, do not expect to earn a quick profit because it is geared for medium- to long-term investments.

If you have a large sum of money that you do not want to risk investing, fixed deposits are a good option.

Fixed deposit accounts are low-risk investments that pay interest for a certain length of time – low-risk investments that may help you increase your money.

You do not have to do anything to earn this interest. All you have to do is deposit your money in a bank. Consider it similar to the mould on a slice of bread. Simply leave it out in the open and the mould will take care of itself.

The drawback is that their profits are not particularly high. Fixed deposit interest rates used to be as high as 2% p.a. before Covid, but fixed deposit interest rates are still modest now.

How much of my salary should be allocated to short-term endowment plans?

To determine how much of your salary should be allocated to short-term endowment plans, you can follow the 50/30/20 rule.

The 50/30/20 rule makes managing your earnings, savings and spending simple and uncomplicated.

It has gained popularity due to its simplicity and intuitiveness, but it may be customized to meet your specific requirements.

Here’s how you can use this ratio, divide your monthly take-home income into the following categories: 50% spent on necessities, 30% on wants, and 20% set up for savings. Hence, part of that 20% could be allocated to short-term endowment plans.

What to understand in an endowment plan

It is easy to become lost in the realm of terminologies used in endowment planning. Here are some challenging concepts that this useful dictionary might help you understand fast.

6 Best short-term endowment plans

Disclaimer: The following policies listed still have spots available and are not oversubscribed at the time of posting.

FWD Save First

FWD Save First is a 3-year non-participating, single premium endowment insurance plan. It is a short-term savings plan that offers insurance coverage against death during the policy cover and pays a guaranteed maturity benefit at the end of the 3rd year if the person insured is alive.

The policy coverage for this plan is 3 years and requires only a one-time upfront payment. You get a guaranteed maturity benefit of 1.60% per annum when your plan matures at the end of 3 years. Your capital is 100% guaranteed when the plan matures at the end of 3 years.

There is coverage for a death benefits of up to 105% on a single premium, you only need a minimum one-time upfront payment of S$10,000.

Do note that this policy is available on a limited tranche basis only. Application and payment made for this policy do not guarantee acceptance by FWD.

Manulife Goal 10

Rev up the growth of your funds as you zoom towards your life targets. The two-year single premium endowment plan will give your funds a quick boost within a short period of time with 100% capital guaranteed at maturity.

Manulife Goal 10 returns a guaranteed 3.39% upon 2 years of maturity or 2.12% per annum, and there is coverage for death benefit at 101% of the single premium. Additionally, the non-guaranteed returns are 0.15%, resulting in the total potential returns to be 2.64% p.a. or 3.54%.

Next, you only need a minimum single premium of S$10,000 via cash or Supplementary Retirement Scheme (SRS), and it is an easy application with guaranteed acceptance.

DBS SavvyEndowment 7

Have a short-term saving goal? Build up your savings over 2 years with DBS SavvyEndowment 7, a short-term endowment plan.

An insurance endowment plan that boosts your financial well-being in a short commitment period of 2 years, DBS SavvyEndowment 7 returns up to 3.54% over 2 years upon maturity and you will get your capital back at the end of the policy term.

There is coverage for death benefits at 101% of the single premium. As it is underwritten by Manulife, it is the same policy as Manulife Goal 10, however, only a minimum single premium of S$5,000 via cash or Supplementary Retirement Scheme (SRS) is required.


Aim for guaranteed savings with i-Save! It is a 3-year single premium savings plan that lets you enjoy guaranteed return at maturity and provides death coverage up to 105% of a single premium only after the 12th month.

i-Save provides an attractive guaranteed return of 1.80% p.a. for a 3-year plan and a minimum investment sum of S$50,000. Additionally, the application is hassle-free.

NTUC Income Gro Capital Ease Eco

Gro Capital Ease Eco, NTUC Income's first Environmental, Social, and Governance (ESG) plan, is now available if you desire to save and support a sustainable future through a short-term insurance savings plan.

Gro Capital Ease Eco is a non-participating single premium insurance savings plan with carefully selected assets that have high or improving ESG scores for its portfolios.

It pays you a lump payment with a guaranteed return of 1.82% each year for the next three years. Furthermore, it protects against death and severe and permanent disability (TPD before age 70).

The minimum single premium starts at $10,000, and you can make payment easily via PayNow, Supplementary Retirement Scheme, and eGIRO.

Policyholders will get a payout of the net single premium if it occurs within one year of the policy's cover start date. Policyholders will get 105%of the net single premium if it occurs after one year from the policy's cover start date throughout the policy term.

LIC Wealth Plus 7

LIC Wealth Plus 7 is a single premium endowment plan with guaranteed returns. The policy term is 3 years and the guaranteed maturity benefit will be paid at the end of the policy term.

The premium range is from S$20,000 to S$200,000, and there is a guaranteed simple interest rate of 1.50%.

Additionally, LIC Wealth Plus 7 covers death benefits, total and permanent disability (TPD) and first-year accidental death benefits. For the first year accidental death benefit, an additional 10% aka 110% of your premiums will be returned to you within the first year of the policy if it is accidental death.

For TPD and death benefit, your single premium is returned with simple interest!


Depending on your current financial situation, saving habits and future life goals, endowment plans can be something worth considering for all the benefits they provide their holders.

If you'd like to sign up for an endowment plan, feel free to contact us! We compare and assess endowment plans from all over the industry on a constant basis to ensure our clients get the best deals.

Regardless of whether you choose to sign up for an endowment plan, we hope that this article has helped you become better informed to make the best choice for you.



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