Income DreamSaver

[richwang]

My friend is asking whether this is capital guaranteed. I believe it is.

http://www.income.com.sg/insurance/DreamSaver/index.asp

"This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC)."

She is looking at putting S$50K in total for 10 years.

Any comments or better recommendations?
Thanks,
Richard

[lionhill]

My friend is asking whether this is capital guaranteed. I believe it is.

http://www.income.com.sg/insurance/DreamSaver/index.asp

"This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC)."

She is looking at putting S$50K in total for 10 years.

Any comments or better recommendations?
Thanks,
Richard
Capital guaranteed is a feature of some investment product, meaning that your premium is guaranteed to be safe. Income endowment plan does not claim to be capital guaranteed, but it will have a guaranteed portion and non-guaranteed portion for each year. Usually, you will get more than your premium if you hold it to the end.

SDIC is a protection scheme provided by government for bank deposit and some insurance products. It only guarantees that you will get your portion if income bankrupts. However, it does not guarantee the performance of an insurance performance.

[k00L]

My friend is asking whether this is capital guaranteed. I believe it is.

http://www.income.com.sg/insurance/DreamSaver/index.asp

"This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC)."

She is looking at putting S$50K in total for 10 years.

Any comments or better recommendations?
Thanks,
Richard

That depends on her objective. This scheme is for savers (especially those who are not disciplined to save monthly), not for investors, as the return is low which may not beat inflation.
If she has the luxury of 10year time horizon, she can invest in a diversified blue chip stocks on regular dollar-averaging manner, the returns will be higher (not forgetting some regular dividends). Supplement it with a cheap term insurance, you will have replicate with what this plan is try to achieve (but at a lower cost).

[richwang]

Thanks for the replies. She has decided to go with the Income DreamSaver plan. We will know whether she is correct 10 years later.

Cheers! Richard