I bought an endowment plan?!

Aiyo, bluryoungadult, don’t so blur can or not? Buy endowment plan where got good? You never read so many people say endowment plan not good meh? You still buy for what?

Well… It felt like the right decision then and tbh I’m not regretting it one bit! I did my¬†homework, I weighed my options, I really thought long and hard, and I am prepared to handle the not-so-good outcomes.

I bought this endowment plan when I started work as a first baby step to investing and a means to diversify my then non-existent portfolio. So yes, it’s truly meant for savings, not for insurance. (Because come on, that’s not what endowment plans are for)

I started the long process by searching for all accessible endowment plans in the market on comparefirst website. I liked using comparefirst for this because it gave me the figures right away. No need to leave my contact details with a specific insurance company to later be bombarded by phone calls and pushy sales (no offence).

After collating the results, I then narrowed down the options with the following selection criteria:

  1. Guaranteed payout > total premium paid (I don’t care how good the non-guaranteed payout is because its NON-guaranteed!)
  2. Pay for a few years and let the money grow (5 years was the most common one)
  3. Long term outlook – more than 10 years since I’m still young

After reading forums and thinking long and hard, I settled. I settled for Tokio Marine TM Nest Egg (GIO).

Below is a summary of the benefit illustration:

  • Annual premium: $5,076
  • Total premium paid after 5 years: $25,380
  • Guaranteed payout after 15 years: $30,000
  • Total projected @ 3.25%: $35,273
  • Total projected @ 4.75%: $41,251

Probably peanuts to the seasoned investor. But for a newbie like me, why not?