Best Endowment Plan for Regular Annual Income

With fixed deposit rates on a downward trend and expected to decline further, why not consider an endowment plan that offers regular annual income, similar to the interest earned from a fixed deposit? This option saves you the hassle of renewing your fixed deposit at the bank every one or two years.

Interestguru.sg has compare endowment plans across different insurers and has concluded the best endowment plan that pays a regular annual income.

Best Endowment Plan thats pays a regular annual income

Singlife Flexi Income II, top the chart for endowment plan that pays a regular annual income due to the flexiblity of the plan which includes:

• Premiums can be Single Premium or Regular Premium; this also means you do not need a huge lump sum to start off like most fixed deposits
• Choose when you want your annual income to start paying off; you are the boss, you call the shots!
• Capital Guaranteed upon reaching your income payout year, just like a fixed deposit
• Annual income generated can potentially be higher than your fixed deposit interest rate
• Change of mind? Do not need the annual income now? Leave your annual income with Singlife and get paid with a current interest rate of 3% per annum
  
  

Sample Comparison

The following comparison is based on a $100,000 lump sum over a period of 15 years.

*Average interest rate (2.62% p.a) from 1977 to 2021 (Trading Economics)

The above comparison is based on Fixed Deposits previously having an average interest rate of 2.62%, reflecting a higher interest rate environment in the past.

Currently, Fixed Deposit interest rates average around 2.5% per annum, and are gradually decreasing towards the typical rate of approximately 1.9% per annum seen in 2019.

The total interest you will be collecting over the next 15 years via a Fixed Deposit will be about $39,300, assuming an average interest rate of 2.62% p.a.. The total income you will be receiving via Singlife Flexi Income II over the next 15 years will be about $42,588.

Both instruments protects the capital of SGD$100,000 upon termination of plan.

Why an endowment plan with regular annual income?

More benefits than cons, such as:

• Singlife Flexi Income II is a whole of life endowment, leave it there for as long as you want to collect your income, a hassle free plan
• Leave a legacy for your child in the future by placing a secondary life insured, the plan will continue to pay income under his/her name after your demise
• Set up your beneficiaries for Singlife Flexi Income II, death benefit which is 101% of your total premiums paid will be paid upon your demise to your beneficiaries
• Safeguard your yield against flactuating interest rate, yet providing you a guaranteed capital with the option for plan continuity upon your demise

Read more: Why is it important to set up a will now than later

Read more: 3 Best Whole Life Endowment Plan in Singapore

What’s next?

You do not need to make a decision right away, Whatsapp us or leave your contact details via the form below. Our friendly advisors will learn more about your needs and budget, and recomment the best endowment plan for regular income according to your needs, with no charges incurred!