You will agree with that it is very hard to compare apple to apple for the different endowment plans in Singapore.
Instead of comparing the features, we look at their yield.
Read on to find out more.
Understanding Insurer’s Participating Funds
Participating fund directly impact your endowment policies’ yield.
Consumers are not well informed and savvy to know about participating funds and thus overly focuses on the features like policy flexibility, payment term, policy tenure and premium amount. When consumers look at the product illustration presented by insurance company’s representatives, there are projection tables similar to these:
Since July 2013, Life Insurance Association Singapore adopted a set of lower investment returns – 4.75% and 3.25% p.a. shown on insurer’s policy illustration. It was previously 5.25% p.a. and 3.25% p.a. respectively. These two rates are used purely for illustration purpose and do not represent the upper and lower limit of the potential returns of the participating fund.
Past Participating Fund Returns
Disclaimer: Past performance does not determine future performance of the fund.
In December 2017, The Straits Times reported the following article: Insurers: Better returns eyed for participating funds in 2018. In the article, it state: “Prudential led with 11 top quartiles over the one-year to 11-year averages, followed by AIA with 10 and Great Eastern with five.”
Looking at this, you should take this into considerations when choosing the best endowment plan in 2018.
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