The Tiq 3-Year Endowment Plan offers a high guaranteed return of 3.56% per annum and life protection, making it a solid short-term investment option. However, it has limited availability and lacks premium payment flexibility, with no withdrawals during the term, which may deter some investors.
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Discover the benefits and features of the Tiq 3-Year Endowment Plan by clicking here for a detailed overview.
The Tiq 3-Year Endowment Plan offers a high guaranteed return of 3.56% per annum (as per time of writing), providing stable and predictable growth over the short term.
This plan includes life protection at 101% of the single premium, guaranteed acceptance, and a low minimum investment requirement of S$5,000.
The plan lacks flexibility due to its single premium payment structure and restriction on withdrawals or payouts during the term.
- 3.56% per annum, ensuring stable growth over the 3-year term.
- Coverage at 101% of the single premium adds an extra layer of security.
- Accessible starting at S$5,000, appealing to a wide range of investors.
- Offered on a tranche basis, leading to potential missed opportunities.
- Single premium payment required with no withdrawals allowed during the term.
VERDICT:
The Tiq 3-Year Endowment Plan is an attractive option for those seeking short-term, stable growth with the added benefit of life protection.
Its high guaranteed returns and low minimum investment make it accessible and appealing to a broad audience.
However, the plan’s limited availability, lack of flexibility in premium payments, and restriction on withdrawals may not suit investors seeking liquidity or those who prefer participating plans with potential for higher returns.
It is essential to consider your financial goals and flexibility needs before committing to this plan.
What we like about the Tiq 3-Year Endowment Plan
High Guaranteed Returns
One of the standout features of the Tiq 3-Year Endowment Plan is its high guaranteed returns. At the time of writing, the Tiq 3-Year Endowment Plan has the highest guaranteed return of 3.56% per annum, offering plan offers a total of 11.07% returns over the 3-year period.
This is an attractive rate, especially considering the current low-interest-rate environment in many savings accounts.
The guarantee means you can confidently anticipate the growth of your investment, knowing exactly what you’ll receive at maturity.
This level of certainty is particularly valuable for those looking to secure their savings without exposure to market volatility.
Life Protection
The Tiq 3-Year Endowment Plan includes a life protection benefit, providing coverage at 101% of the single premium paid.
This ensures that, in the unfortunate event of the policyholder’s death, the beneficiaries will receive slightly more than the initial investment.
While endowment plans are primarily savings instruments, the inclusion of life protection adds an extra layer of security, making it a dual-purpose financial product.
This feature offers peace of mind, knowing that your loved ones are protected financially, even if the worst should happen.
Low Minimum Investment
The low minimum investment requirement of S$5,000 makes the Tiq 3-Year Endowment Plan accessible to a broad range of investors.
This feature is particularly advantageous for those who are new to investing or who wish to start with a smaller financial commitment.
It allows for the diversification of savings strategies without necessitating a large initial outlay.
The low entry point ensures that more individuals can take advantage of the plan’s benefits, making it an inclusive option for savers at different financial stages.
Guaranteed Acceptance
The Tiq 3-Year Endowment Plan offers guaranteed acceptance, which means that there is no need for medical underwriting or health assessments to qualify for the plan.
This feature is particularly attractive for individuals who might otherwise be excluded from obtaining financial products due to pre-existing health conditions.
It simplifies the application process, making it quick and hassle-free.
Guaranteed acceptance provides peace of mind, ensuring that anyone can secure their investment without worrying about eligibility criteria based on health status.
Short Maturity Period
The Tiq 3-Year Endowment Plan’s short maturity period of just three years is another appealing feature.
This period is ideal for investors seeking relatively quick returns on their investment without the long-term commitment typically required by other endowment plans.
A shorter maturity period offers flexibility, allowing investors to plan for medium-term financial goals such as saving for a holiday, home renovation, or a child’s educational expenses.
It also means that investors can re-evaluate their financial needs and strategies more frequently, adapting to changes in their personal or economic circumstances.
What we think the Tiq 3-Year Endowment Plan could do better
Limited Availability
One significant drawback of the Tiq 3-Year Endowment Plan is its limited availability.
This product is offered on a tranche basis, meaning that it is only available during specific periods and typically on a first-come, first-served basis.
This limitation can be frustrating for potential investors who are ready to commit but miss the enrollment window.
The urgency and scarcity can also create pressure to make quick decisions, which may not always be in the investor’s best interest.
The limited availability might deter those who prefer to take time to consider their options carefully.
Lack of Flexibility in Premium Payments
Another downside is the lack of flexibility in premium payments.
The Tiq 3-Year Endowment Plan requires a single lump sum premium – similar to other short-term endowment plans – which might not be suitable for all investors.
This can be a barrier for individuals who prefer to spread their payments over time or who do not have the liquidity to invest a large sum at once.
Such inflexibility can limit participation to only those with sufficient upfront capital, excluding those who might prefer or need more manageable, periodic payment options.
No Withdrawals or Payouts During the Term
Just like other short-term endowment plans, the Tiq 3-Year Endowment Plan does not allow for withdrawals or payouts during its term, which can be a significant disadvantage for investors seeking liquidity.
This feature restricts access to funds, which might be necessary for unforeseen circumstances or opportunities that require immediate financial resources.
The inability to access funds until maturity can be a deal-breaker for those who value liquidity and want the flexibility to adjust their investment strategies as their financial situations evolve.
Better alternatives to the Tiq 3-Year Endowment Plan
As this is a short-term endowment plan, many other similar policies offer similar features.
There is no better alternative, but rather what you manage to purchase due to the limited subscriptions available.
Let Us Compare Policies For You
When considering endowment plans, it’s essential to think about the overall flexibility offered by the features, as these plans are often long-term commitments.
Look at the accumulation period and payout options available, and check whether your capital is guaranteed.
Also, consider the growth potential of the participating funds, taking into account both guaranteed and non-guaranteed returns.
A good policy for one goal might not suit someone with different objectives.
That’s why it’s crucial to understand what you’re purchasing deeply.
Our partners are trained and have years of experience in helping clients navigate these complexities.
We can assist you in comparing policies, ensuring they align with your current situation and future goals.
We offer a free, non-obligatory comparison session where we can help you obtain and compare quotes, making the process straightforward and tailored to your needs.
Feel free to reach out if you’d like to learn more!