3 Best Savings Endowment Plans with Lifetime Wealth Accumulation in Singapore (2024 Edition)

A new class of Savings and Endowment plans has hit the market, allowing a lifetime of wealth accumulation. Such policies combine both the characteristics of Savings endowment and Whole life plans.

Meant for the purpose of enhancing your financial returns, each of the lifetime savings plans has its advantages and specific shortcomings as discussed below.

This article is updated as of 06/10/2024.

The 3 Best Savings Endowment Plans with Lifetime Wealth Accumulation in Singapore

Reviewing endowment policies across all insurers in Singapore, InterestGuru.sg presents this comprehensive list of the best savings plans for lifetime wealth accumulation based on their individual features.

• Best Lifetime Savings Plan for guaranteed capital – Singlife Flexi Life Income II
• Best Lifetime Savings Plan for withdrawal flexibility – Manulife ReadyBuilder (II)
• Best Lifetime Savings Plan for retirees – NTUC Income Gro Cash Plus
  
  

Note: All the featured savings plans allow for lifetime wealth accumulation without a fixed maturity. To fully withdraw the accumulated cash value, you may simply surrender/ terminate the policy.

Should you take up a lifetime endowment plan?

Should long-term wealth accumulation be your primary objective, a lifetime endowment plan may offer the best product features that meet your needs.

• The flexibility of partial withdrawal without financial penalty
• Long-term guaranteed capital growth on your money
  
  

Depending on the insurance companies, lifetime endowment plans can be classified as a whole life plan or an endowment savings plan.

Key characteristic lifetime endowment savings plans include:

• Paying insurance premium for a fixed number of years or in a lump sum single premium
  
• Reaching a higher guaranteed cash value than the total premium paid in a shorter number of years
• Choice of maturity or surrendering of the plan for cash value
  
  

In any case, it is never too early to start saving and let the effects of compounding returns generate additional wealth for you.

The advantages of a whole of life endowment plan

Within this category of life insurance plans, some features are generally available to all of them.

• Limited period of payment – Insurance premium is only paid for a fixed number of years or in a lump sum single premium
• Guaranteed of capital – Capital is principle guaranteed after a fixed number of years
• Partial withdrawal – Part of the accumulated savings can be withdrawn
• Unlimited wealth accumulation – The policy continues until termination for full cash value. you choose your own maturity date
•  Guaranteed issuance – No medical underwriting or health check is required
  
  

The disadvantages of a whole of life endowment plan

As wealth accumulation is the primary objective of lifetime endowment plans, the insurance coverages are generally lacking. Compared to a whole life insurance policy, the following features are commonly lower in values.

• Critical and Early Critical Illness coverage – Lump sum payouts are not available for such plans
• Coverage multiplier – Multiplier for insurance coverage are not available
• Low Sum Assured value – In the event of death, the plan usually only pays the higher of 105% of total premium paid or surrender value
  
  

Read about: Term life or Whole life (Which is better for long-term coverage)?

Which lifetime endowment savings plan is the best?

Depending on your financial objectives and goals, Singlife Flexi Income II, Manulife ReadyBuilder (II) or NTUC Income Gro Cash Plus may each better fit you.

Best Lifetime Savings Plan for guaranteed capital – Singlife Flexi Income II

Singlife Flexi Income II allows you to pay your premiums in a single lump sum or as short as 3 years for maxmium wealth accumulation. What’s even better? Start collecting your yearly income from as early as the end of 3rd policy year till a lifetime!

Key features of Singlife Flexi Income II includes:

• The payout of a yearly income of up to 5.2% of your sum assured from as early as the end of 3rd policy year
• Capital is guarateed once the income starts paying out
• Capital will not be reduced when income pays out
• Allows secondary life insured so the policy is automatically transferred to the secondary life assured upon the demise of the main policyholder for policy continuity for wealth accumulation
  
  

More about: Singlife Flexi Income II review

Best Lifetime Savings Plan for withdrawal flexibility- Manulife ReadyBuilder(II)

With unlimited withdrawal features and continual wealth accumulation, Manulife ReadyBuilder (II) allows you to achieve multiple goals within a single insurance savings plan.

Besides lifelong wealth accumulation, the policy can be re-assign or pass on to a third party for further financial gains.

Key features of Manulife ReadyBuilder(II) includes:

• The flexibility of withdrawal from the cash value
• The option to stop paying the insurance premium for up to a year, without incurring interest or penalties on the payable premium 
• Continuity of plan to the next generation or third party without starting all over again from the beginning 
• Wavier of future insurance premiums in the event of Total and Permanent Disability
  
  

More about: Manulife ReadyBuilder(II) review 

Best Lifetime Savings Plan for retirees – NTUC Income Gro Cash Plus

One of the newest plan in the market, NTUC Gro Cash Plus allows clients of up to age 75 to puchase this plan for wealth accumulation. NTUC Gro Cash Plus is perfect for retirees looking to grow their wealth via a safer option.

Key features of NTUC Income Gro Cash Plus includes:

• 3 years premiums option available only (Min sum of $15,000)
• Annual guaranteed income payout starting from the end of the 3rd policy year
• Option to accumulate annual income at the prevailing interest rate of 3.0% p.a
  
  

More about: NTUC Income Gro Cash Plus review (Opens in a new tab)

Are whole of life endowment plans suitable for you?

If mid to long-term wealth accumulation is your primary objective, a whole of life endowment plan may be an excellent fit for your financial goals. Instead of being restricted by a fixed maturity endowment plan, you can now terminate the policy only when you need the funds.

Read about: Where do you start with financial planning?

If a lump sum payout is your priority

Prefer to have access to withdraw from your lump sum while allowing the remaining funds to accumulate over time?  Consider a limited payment policy with features that enhance your financial journey. Plans such as Manulife ReadyBuilder (II) even have fail-safe features during a period of financial difficulty.

And for those looking at wealth succession, Singlife Flexi Income II allows a joint-ownership to ensure there will be no unforeseen financial dispute within the family after your demise.

Read about: This is why your insurance payment term should be as short as possible

Read about: 4 Best Endowment Savings Plans in Singapore (Updated)

Lifetime endowment savings plans are for long-term gains

Not all lifetime endowment plans allow withdrawal at any point in time, take your time to fully understand the terms and conditions.

In the event that you require insurance coverage or investment returns, such savings plans will certainly not be suitable for you. Hence, always ensure that your financial goals are met and there is a reasonable time horizon towards making a full withdrawal.

Which Endowment Savings Plans are the most suitable for you?