Questions people ask about savings and insurance plans
The questions that come up when you are holding a proposal or deciding whether to keep a policy, answered in plain language with the numbers to check. Educational only, not financial advice.
Should I surrender my endowment plan early?
That depends on what you would give up and what you need the money for.
QuestionHow does a guaranteed endowment plan compare with Singapore Savings Bonds?
Both can protect your capital, but they differ in who backs them, how easily you can get your money out, and what they promise.
QuestionWhat does "guaranteed" really mean in my benefit illustration?
The guaranteed figures are the amounts the insurer is contractually bound to pay, whatever happens to its investments.
QuestionWhy is the return on my plan lower than the illustration suggests?
The illustrated rate is an assumption about the insurer's investment fund, not the yearly return on what you pay.
QuestionHow much do the charges on an investment-linked policy cost over time?
Charges come out every year as a share of the policy's value, so their cost compounds.
QuestionIs an ILP riskier than an endowment plan?
Yes, in the sense that an investment-linked policy (ILP) has no guaranteed return: its value follows the sub-funds you choose and can fall as well as rise.
QuestionCan I stop paying premiums without losing everything?
It depends on your policy.
QuestionWhat should I ask my adviser before I sign a savings or investment-linked plan?
Ask what is guaranteed and what is only projected, what it costs each year, what you would get back if you stopped in the early years, and what the illustrated rates assume.