Endowment plans and
investment-linked plans (ILPs) are among the most common insurance plans in Singapore.
While both types of plans are suitable for achieving long-term financial goals, there are distinct differences in how endowments and ILPs work.
This article will explore the key differences between endowment plans and ILPs, so you can make an informed choice when choosing between the two.
Related: How Endowment Insurance Plans Work — T&Cs You Need To Know
Endowment Plans vs ILPs — 4 Key Differences
| Endowment plans |
Investment-linked plans (ILPs) |
| Provides guaranteed cash value, with potential for non-guaranteed bonuses and dividends |
Cash value not guaranteed; policyholder assumes 100% of investing risk. |
| Primarily used for saving, with potential investment returns. |
Combines investment and insurance coverage in one. |
| Offers insurance coverage with riders. |
Offers riders to expand scope of coverage. |
| Potentially lower returns, lower risk |
Potentially higher returns, higher risk |
| Plan terminates upon maturity |
Flexibility to maintain plan beyond premium payment period |
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