Life is a series of milestones, big and small. Whether it’s planning for your next getaway, saving for your child’s education or creating your dream retirement, having a solid financial plan makes all the difference. That’s where endowment plans come in. Designed as disciplined savings solutions, these plans provide guaranteed payouts¹ and insurance protection with potential bonuses, depending on the plan, to help you meet your goals. In this article, we’ll show you how short- and long-term endowment plans can work together to give you the flexibility to manage your finances across different life stages.

Short-term endowments: For honeymoons or home-renovations

If the name doesn’t give it away already, short-term endowment plans are designed to grow your money over a short span of time, typically five years or less while providing life coverage. You’ll usually pay a single premium upfront and your funds are locked in to earn a guaranteed interest rate until the plan matures.

These plans can be a great way to save for those big life moments we all dream about. Planning a wedding? A short-term endowment can help you save for that fancy banquet or even a dreamy honeymoon in the Swiss Alps (because let’s be real, skiing trips don’t come cheap). Or maybe you’ve just applied for a BTO flat and have all these ideas on how to turn it into your dream home. Funding a short-term endowment with a joint account you share with your partner can help pay for those renovations without breaking the bank.

A great option you can consider is Singlife Digital Saver II. With a guaranteed yield of 2.60% p.a.², you’ll get back 108% of your investment at the end of three years. Complete the application online and fund your plan using PayNow, FAST, Interbank Fund Transfer or Supplementary Retirement Scheme (SRS) funds.

Here’s an example of how Singlife Digital Saver II works:

Medium- to long-term endowments: For your children’s education, retirement and legacy

Who doesn’t dream of living a long and fulfilling life? Medium to long-term endowment plans are designed to help your money grow over extended periods, offering the option to contribute regular premiums while fostering discipline to save for the future. This allows your savings to compound over time, providing financial support for key milestones later in life, such as funding your child’s education or securing a comfortable retirement.

Apart from the extended duration of the plan, long-term endowments are typically participating plans that, in addition to guaranteed returns, may also provide potential bonuses based on the performance of the insurer’s participating fund. Think of it as a little extra reward for staying committed to your plan over the years.

Singlife Smart Saver is one example of a medium- to long-term participating endowment plan that helps individuals tackle multiple goals. For instance, with 40% of Singaporeans holding the notion that having a child would delay their retirement age by 14 to 15 years^*, it’s important to start planning for your child’s education needs and your retirement early – which is just what Singlife Smart Saver could help you with. With the market-first Life Stage Add-on³, you can purchase Singlife Smart Saver Plus, a separate add-on savings plan, at a lower premium⁴ to meet your evolving needs. You’ll also have the flexibility to choose between single or regular premium payments, allowing you to manage your finances without being tied to fixed payment schedules. Plus, with the single premium option, you can tap into your Supplementary Retirement Scheme (SRS) funds—helping you grow your savings while enjoying tax benefits.

Here’s a simple illustration of how it works for a family:

You can also ensure your loved ones remain protected across generations, with Singlife Smart Saver's estate planning features. The Legacy Distribution Option⁵ allows you to split your policy into multiple sub-policies easily at no extra cost. This feature enables you to allocate sub-policies to your children, for example, with each sub-policy operating as a standalone plan ensuring a structured, hassle-free transfer of wealth. For added assurance, the Secondary Life Assured⁶ feature allows for your loved ones to take over your policy seamlessly in the event of your death.

Conclusion: Pick the right plan for the right task

The beauty of endowment plans lies in their versatility. Short-term plans are perfect for those looking to achieve specific, near-future goals, while long-term plans provide a steady path to securing your family’s future or your own retirement. Ultimately, the choice between short- and long-term comes down to your current needs and priorities. Consider speaking to your financial adviser representative who can help tailor a plan that fits your personal savings goals.

^Notes

^{1 The guaranteed amount that you will receive at the Policy Maturity Date is at least equivalent to the Total Premiums Paid for the basic plan, subject to the policy terms and conditions.}

^{2 The guaranteed yield of 2.60% upon maturity is based on the Life Assured surviving until the end of the policy term with no surrender or claims made during the entire policy term. If the policy is still in force on the policy maturity date, Singapore Life Ltd. will pay the guaranteed Maturity Benefit which is 108% of the single premium less any monies owing to Singapore Life Ltd.}

^{3 The policyholder may purchase Singlife Smart Saver Plus add-on plans at a lower premium (compared to the main plan) 6 months after the main plan has been issued. The add-on plan will have the same features as the main plan, but with the flexibility to choose different policy and premium terms. This option can only be exercised when the main plan is still active.}

^{4 The original policyholder who first purchased a Singlife Smart Saver plan (referred to as the main plan) may purchase Singlife Smart Saver Plus add-on plans at least 6 months aer the main plan has been issued. The policyholder has the flexibility to choose dierent policy and premium terms from the main plan. The add-on plan(s) will have the same features as the main plan, with the following exceptions:}

^{a. The add-on plan(s) do not include the Life Stage Add-on feature, and}

^{b. Premiums for the prevailing add-on savings plan will be lower than the prevailing main plan. However, the premium of the prevailing add-on savings plan may be higher or lower than the main plan purchased.This option can only be exercised when the main plan is still active and subject to the availability of Singlife Smart Saver Plus}

^{5 Available starting 5 years from the policy issue date, or when your premiums are fully paid, whichever is later. This option allows you to divide the base policy into separate sub-policies before it matures. Each sub-policy will have its own policy number and will be treated as a standalone plan. Once the policy is split, it cannot be reversed. This option can only be exercised once. At the time of exercising the option, the base policy and subsequently sub-policies must each meet a minimum guaranteed surrender value of S$100,000, which is the current value. This amount may change at our discretion, and we will inform the policyholder if the minimum value for the Legacy Distribution Option is updated when applying. Please refer to the Product Summary for more details.}

^{6 The policyholder can request to appoint or change a Secondary Life Assured at policy application or during policy term, while the Assured or Life Assured is alive. The secondary Life Assured must have sufficient insurable interest in relation to the Policyholder. Upon the death of the Life Assured, the policy continues with cover on the life of the appointed Secondary Life Assured, and no death benefit will be payable. Please refer to the Product Summary for more details.}

^{*Source: Singlife, “Singlife Financial Freedom Index 2024”, accessed 31 January 2025.}