Could an endowment plan meet your investment goals? We track down the best endowment plans available in Singapore and how to choose one, whatever your purpose as an investor.
Key Takeaways
Endowment plans are a well-established way to invest in a wide range of assets such as stocks, bonds and property and to receive a lump sum at a future date.
Endowment plans aim to provide steady, smoothed growth, but bonuses are not guaranteed and early surrender values can be lower than premiums paid; non-par short-term tranches have fixed guaranteed yields per tranche.
So they suit relatively cautious investors, or those who want to be confident of receiving that future lump sum.
They also pay out a lump sum on the death of the investor.
There are many types and benefits: short term and long term, some with innovative insurance benefits, and plans with a mix of guaranteed and non-guaranteed returns.
To avoid the confusion of too much choice, focus on the ultimate purpose of your investment and which plans and features best serve that purpose.
Short-term tranches open and close frequently; quoted rates depend on the tranche you apply for on that date. Always check the current tranche rate before applying.
What Is An Endowment Plan?
An endowment plan is a savings product which provides a future lump sum at a maturity date, usually after a fixed term.
Life cover is also provided so that if the investor dies before the plan reaches maturity a lump sum is paid out.
There is a great deal of variety and innovation in this market. For example, some plans provide insurance benefits beyond life cover and some provide flexibility over when withdrawals can be taken.
Endowment plans are provided by life insurance companies, with very large sums invested by experienced fund managers.
Plans may be participating (with non-guaranteed bonuses) or non-participating (fully guaranteed). Many long-term plans also allow premium holidays/deferments and secondary life insured options for continuity.
Types Of Endowment Savings Plans
Short term plans
A short term endowment plan tends to be funded with a single premium, which is invested for say 2 or 3 years.
Long term plans
A long term endowment plan tends to be funded with regular premiums, for say 10, 15 or 25 years.
Flexible plans
Flexible plans allow cash withdrawals within the term of the plan. This is very useful for funding needs such as school fees where cash is needed every school term or annually.
Other types of plans
Some plans allow you to pay premiums for a number of years and then stay invested without paying further premiums. Or you can take an income, say in retirement. Some allow you to reinvest when the plan reaches maturity.
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Best Endowment Plans
We group the best endowment plans by investment horizon and purpose:
- Short-term 2-year guaranteed
- Short-term 3-year guaranteed
- Long-term wealth building
- Flexible education funding
- Retirement income
Best 2 year short term endowment plan in Singapore with guaranteed returns
Singlife Secure Saver (series VIII / latest series)
This is a 2-year, single-premium, non-participating plan offering a guaranteed yield of 2.75% p.a. at maturity (latest tranche, October 2025). The yield may vary in future tranches.
Death benefit: if the life assured dies during the term, the policy pays 105% of the single premium.
The plan is issued in limited acceptance tranches on a first-come, first-served basis; earlier tranches may close when fully subscribed.
Rates are tranche-based and may change for future series; always confirm the live tranche before applying.
Best 3-year short-term endowment plan in Singapore with guaranteed returns
Tiq 3-Year Endowment Plan (Etiqa)
This is a 3-year, single-premium, non-participating savings plan issued by Etiqa Insurance.
As of the latest public tranche (Q4 2025), it offers a guaranteed maturity yield of up to 3.4% p.a.; promotional bundles may raise the effective return slightly higher.
The death benefit equals 101% of the single premium if the life assured passes away during the term.
Minimum investment: S$5,000. Tranche availability is limited and may close early.
Best long term endowment plan in Singapore for wealth building
HSBC Life Wealth Builder
This is a long-term participating endowment plan.
Key features: you may choose premium terms of 5, 10 or 15 years, with policy term extending up to age 120 of the life assured.
You may apply for a one-year premium holiday after the first two annual premiums are fully paid (regular-premium policies only; subject to conditions).
Withdrawals are available (though early withdrawal may reduce returns).
This plan suits investors looking for long-term accumulation and flexibility.
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Best endowment plan in Singapore for funding school fees/flexible withdrawals
Etiqa Enrich flex plus
This plan offers a flexible premium term (3/5/10/15/20 years) with policy term up to age 125.
It features a mix of guaranteed and non-guaranteed returns (depending on premium term), flexible withdrawal options aligned to education funding timing, and optional riders that protect premiums if the investor dies or becomes permanently disabled.
Illustrated maturity yields are up to ≈ 1.65% p.a. (guaranteed) and ≈ 3.95% p.a. (total), depending on term length.
It is well-suited for saving for school fees with built-in insurance and flexibility.
Best endowment plan in Singapore for income in retirement
Singlife Flexi Retirement II
This plan caters to investors preparing for retirement and beyond.
Premium payment options include single premium or regular premiums over 5/10/15/20/25 years.
Features include a guaranteed capital return at the end of the accumulation period (if basic premiums are paid), the option to convert to a monthly income stream or take a lump sum at retirement, and available riders for long-term care or disability.
The plan is designed to align with retirement income needs, protection elements, and deferred income flexibility.
At the end of the accumulation period, your capital is guaranteed provided all basic premiums are paid.
An optional Care Income Plus rider can provide additional payouts for disability or senior-care needs.
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Comparison Of The Top 5 Plans
Note: Tranche-based plans open and close periodically. Guaranteed yields shown are the latest publicly available as of October 2025 and may change in future tranches. Always confirm the live rate and Product Summary before applying.
How Does An Endowment Plan Work?
Investment approach
Premiums are invested by the endowment provider in a wide range of assets such as stocks, bonds and property. At regular intervals the provider adds investment returns to their endowment plans for the benefit of investors.
Plans are ‘non-participating’ or ‘participating’. A non-participating plan has guaranteed returns. A participating plan includes a non-guaranteed element. The non-guaranteed element adds value to the plan if the underlying investments do well by ‘participating’ in the profits of the provider.
Because participating plans have a non-guaranteed element, the risks are slightly higher than non-participating plans, but so then are the potential returns.
Both types of return are designed to increase plan values over time, although surrendering early can still result in lower cash value than total premiums paid.
Non-par short-term tranches (e.g., GREAT SP) credit a fixed guaranteed yield per tranche; par plans (e.g., HSBC Wealth Builder, Singlife Flexi Retirement II, Etiqa Enrich flex plus) pay non-guaranteed bonuses that depend on participating fund performance.
Risks
Endowment plans work best when you stay the full term. Early surrender or missed premiums can lead to lower values than premiums paid; some plans offer limited premium holidays/deferments subject to conditions.
Surrender values are typically lowest in the initial years.
Stopping premiums or making withdrawals before maturity can result in getting less back than you put in.
Some plans, however, promise that the value will at least equal your initial investment after a set term. Also, some pay a bonus at maturity, again rewarding those who stay the full term.
Endowment plan providers do not pass on all their underlying gains to investors. Some of the underlying gains cover their costs and profits. And they keep back some gains to hedge against dips in the value of the assets in which they invest.
That is a good thing for relatively cautious investors. Endowment plans are designed to protect payouts from last minute downturns in markets.
Insurance elements
Also a good thing is the life cover element. Usually this is small, especially on short term plans: typically the premium plus 1-5%. But some plans pay out multiples of that amount if the investor dies.
Others allow ‘riders’ to be added so that premiums continue if the investor dies or is diagnosed with one of a range of diseases.
Further insurance benefits are sometimes available, such as enhanced payouts in the event of a terminal illness, total and permanent disability, or accidental death. Some allow a second life to be insured so that the plan can continue beyond the life of the first investor.
Of course, the more insurance benefits a plan has built in, the more of the investor’s premium is used to pay for them rather than being invested.
Examples: HSBC Wealth Builder offers TPD premium waiver and death/TI coverage; Singlife Flexi Retirement II offers an optional Care Income Plus rider for disability/senior conditions.
Things To Consider Before Choosing An Endowment Plan
- What is the ultimate purpose of your investment and the required timing of the payout?
- Do you need the life cover or other insurance benefits?
- What investment risks are you comfortable with?
- What type of returns do you prefer: participating or non-participating?
- Can you commit to paying the premiums or staying invested for the whole term?
- What happens if you stop premiums or take withdrawals before maturity?
- How much flexibility do you need in paying premiums or making withdrawals?
- Are you comfortable with tranche timing risk on short-term plans (rates can fall by the time you apply)?
- Do you need premium holidays/deferments or secondary life insured options for continuity?
Advantages And Disadvantages Of Endowment Plans
Advantages:
- A well-established way to enjoy the investment returns of large and diversified insurance funds
- Guaranteed tranche yields available on some non-par short-term plans; long-term par plans offer smoothing plus potential bonuses.
- Expect to beat the return on cash deposits in the long term
- Designed to protect against dips in financial markets
- Pays out on the death of the investor
- Can pay out on other insured events such as total and permanent disability or terminal illness
Disadvantages:
- Returns not necessarily guaranteed
- Short term rates not necessarily better than cash deposits
- Charges not transparent
- Stopping premiums or withdrawing early can result in loss
- No choice of funds or fund manager
- Part of your premium pays for insurance benefits
- Some insurance options require medical underwriting
- Short-term tranche rates change frequently and can be lower than high-yield deposit promos.
- Par bonuses are not guaranteed; actual returns depend on participating fund performance.
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How To Choose The Right Endowment Plan
- Consider the ultimate purpose of your investment and whether an endowment will achieve it. When do you need the payout? Is a relatively cautious investment the right way to fund it? Do you need the life cover or other insurance benefits?
- Compare potential providers’ rates for non-participating returns. Also consider potential providers’ track records for participating returns, while remembering that it is future investment performance which matters, not those in the past
- Consider whether you can commit to the full term of the plan, and what flexibility there is for withdrawals without penalty (if any)
- Short-term endowments are tranche-based; verify the current guaranteed yield and any bank-tie-up sweeteners (e.g., deposit rate boosts) before committing.
- Consult your financial and tax advisors as appropriate
What’s Changed in 2025?
- Average guaranteed yields for short-term endowment plans in Singapore now range between 2.5% and 3.5% p.a., lower than the 4-5% seen in 2022-2023.
- Higher-yield tranches sell out quickly, and long-term par plans continue to focus on stability rather than short-term rates.
- This makes it more important than ever to check tranche availability and compare current yields against high-interest deposit promos.
Conclusion
Endowment plans can meet a wide variety of investment goals. Being relatively low risk they suit cautious investors or investors who have a specific purpose in mind for which steady returns are important.
They are however designed to run for the full term, the main risk being potential loss on early termination or withdrawal.
Insurance elements can be useful in protecting the ultimate purpose from the unforeseen.
*KILDE PTE LTD (“Kilde”) is incorporated in Singapore (registration no. 201929587K) is licenced and regulated by the Monetary Authority Singapore and holds a Capital Markets Services Licence (CMS101016) and an Exempted Financial Advisor License under the Financial Adviser Act. The information provided in this marketing material is intended for “accredited investors” and “institutional investors” (collectively “qualified persons”) only. This marketing material, and any information in this marketing material, or any documentation that Kilde provides in relation to this marketing material is provided without any representation or any kind of warranties whatsoever (whether express or implied by law).
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