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FWD’s New Insurance Savings Plan Just Made Growing Your Money a Lot Easier

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Mark Cheng

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Since the Monetary Authority of Singapore (MAS) opened the gates for insurers to distribute life insurance products online, we’ve seen a slew of new products reaching out to an audience that is becoming increasingly comfortable with managing their finances independently and directly online.

FWD’s latest offering is an endowment plan that has been developed in response to MAS’s new guidelines, and continues to signal a trend where people don’t require talking to an adviser or a bank in order to make a purchase.

But that’s just really the tip of the iceberg, because this life savings insurance plan is one of the most competitive products on the market now. And this isn’t just amongst endowment plans, but it can certainly give many others a run for their money. In fact, the first launch of the product in August was so successful they are offering a second tranche, but more on that later. Here’s what we mean:

 

The FWD Endowment Plan – Bigger, faster returns

To kick things off, at 3 years, this endowment plan has a much shorter commitment period than your typical plan. What this really means in simple terms is that you’re able to reap the benefits of the interest earned on your savings in a much shorter time.

Of course the next question is – how much interest can you actually earn? Investment and savings products with this time frame don’t offer particularly high interest rates. With the ability to offer life insurance products online, this has started to change, with companies like FWD being able to cut out middleman costs, and offer better rates in return.

But better rates often come together with longer maturity periods. In this case, FWD is offering the guaranteed returns of 2.02% per annum within a 3-year commitment period. So not only do you avoid parking your money there for a terribly long period, you still get to enjoy a highly competitive interest rate.

 

An easier way to make money

Historically, many people might think of endowment plans as a product that requires a relatively big sum of money over a long period of time, and hence not see it as something that’s good for short-term growth of money.

The difference here is not just what was mentioned about interest rate and maturity period, but also the low entry point for this product, which is equally important.

The minimum single premium starts at $1,000 – a more affordable starting point for many. This makes life savings insurance plans more accessible, especially to the younger crowd who often feel they need to build a large sum of money before investing.

At the same time, for older folk who might feel that normal endowment plans don’t make sense because of the long maturity period, this is a great choice because of the shorter commitment period. As capital is guaranteed upon the plan’s maturity, this is certainly a much wiser choice for older folk who want to protect their hard-earned money.

 

How do I apply?

Due to the overwhelming response, FWD’s second tranche is also sold out, BUT… there’s still a chance that you can enjoy the benefits of this great plan.

FWD is having an event this weekend where you can take part in a 60-sec “cash grab” and stand a chance to win an exclusive Endowment Plan* worth up to $18,000:

  • Participants will be given 60-sec to grab $1,112 in replica bills

  • Participants who successfully grab the exact amount are automatically entered on the lucky draw and will stand a chance to win the exclusive Endowment Plan*

Here are the event details again:

  • Date: 2-3 December
  • Time: 11am – 8pm
  • Venue: Ngee Ann City B2 (near the fountain and Sapporo Petit Doughnut)

If you want to know more about FWD’s Endowment Plan, please register here.

*Terms and Conditions apply.

What are your thoughts on FWD’s latest offering? Share them with us here!

This article is brought to you in collaboration with FWD.

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Mark Cheng

I rant and rave a lot, but when I'm not busy doing that, I'm managing the content for MoneySmart. I love Singapore, but I also believe in helping it to improve bit by bit, and that's where MoneySmart comes in. Have some thoughts? Drop me an email at mark@moneysmart.sg.