There are various options for saving money. Some investment and insurance policies may give you less and some high returns. Options such as savings accounts and fixed deposits offer a lower amount of interest. On the other hand, an Endowment policy is another way to grow your savings.
Hence, an endowment plan is another great way of saving money. It is a savings plan through which you can save and get life coverage for a period. So, it is different from other regular investments such as stock. It is because you don’t get insurance coverage.
Why do you need to buy Endowment Plan?
Planning for retirement is essential to ensure that you are financially stable. Other than that, if you have other financial goals such as higher education for children, a holiday, a dream house, etc. Then, an endowment plan is the best. You can also opt for retirement monthly income for your financial well-being.
These are the reasons that can help you understand how an endowment plan is effective for financial security.
Regular payments of premiums
Endowment plans require you to pay for the premiums regularly for a fixed period. The policyholder decides the premium amount during the time of availing of the policy. You can make payments in different periods like quarterly, half-yearly, monthly, or annually.
Fixed period for maturity
Maturity means the period in which your money requires to expand or grow. After the amount matures, you will get a payout on your premiums along with the bonuses. The endowment plans are available with a broad range of maturity periods.
Thus, it can start from 3 years and last for around 30 years. Thus, it is best for retirement monthly income and other retirement plans.
Overall, an endowment plan has the characteristic of not savings and financial protection. But, the terms and conditions can differ from one plan to another. So, if any policyholder’s unfortunate demise, they will receive the cash payout.
After the maturity of your endowment plan, you can get significant returns. Endowment plans offer you a guaranteed amount on your returns. Thus, it will be the minimum that you will receive.
Furthermore, it is important to understand that the guaranteed amount can be lower or higher depending on the amount of your premium. Along with that, you will also get a non-guaranteed bonus in your policy term.
Types of Endowment Plan
If you are planning to buy an endowment plan, then it is the best way to get a retirement monthly income. However, there are two types of endowment plans that you must know.
Mid and Long-Term Endowment Plan
In the Mid\Long term Endowment plan, you get a regular premium system. Using this, you can pay your money slowly and steadily through your premiums until maturity.
You can get a good interest rate. Interest rate is important to get an overview of the return payouts you can get when you plan maturity. However, the return payouts are not guaranteed.
All the long-term endowment plans reach maturity after 15-20 years. So, you can get a long-term commitment from the insurance company.
Short Term Endowment Plan
The short-term endowment plan is a perfect combination of investment and insurance. In this type of policy, the maturity period can extend up to two to six years. Also, you will not get the capital amount and returns if you withdraw the retirement plan early.
Great Retirement Income by Great Eastern is the Best Endowment Plan
So, if you are planning for retirement, then the retirement monthly income is great for you.
It is a regular premium endowment plan that multiplies your savings by up to 5X or more on your total annual premium paid.
You can start your annual premium with S$4,800 over a premium payment term of 5 years.
Timing of Maturity: It has 5, 10, 15 years terms. You can choose any maturity plan according to your convenience.
Benefits of Great wealth Multiplier II Endowment Plan
This endowment plan is a great way to get retirement monthly income for your future. Thus, it gives coverage against permanent disability, death, and terminal illness. Some of the following benefits of this plan are listed below.
- Get a 100% Capital guarantee as early as the end of the 15th policy year, and you can harvest the benefits of multiplied return.
- Secondly, you can get your desired premium. Above all, you can choose to accumulate or withdraw your cash value based on your preferences.
- Along with that, you can be assured of a 100% Capital guarantee while you can get multiplied bonus.
In conclusion, you must avail yourself of the best endowment plan that suits your needs. The policyholders can decide the maturity period, premium amount, etc. Now, you can save your money by choosing a monthly retirement income from Great Eastern.