The demand for asset allocation in Singapore has remained high over the past two years. Guaranteed savings insurance in SGD and USD, as well as annuity products, have become cornerstone products for high-net-worth individuals seeking asset allocation in Singapore. With numerous insurance companies and a wide array of products, clients often feel overwhelmed. Despite the availability of online information, the risk of information asymmetry remains significant, especially when large sums are involved, and long-term planning leaves little room for error. Therefore, I have written this detailed article on guaranteed savings products in Singapore to help you make more informed choices.
Singapore’s savings insurance market is vast and diverse. Investors need to consider multiple dimensions when selecting insurance products that suit their needs. This article will delve into the classification of savings insurance in Singapore, covering 3 key dimensions/factors: policy duration, cash withdrawal methods, and currency type. Through detailed comparisons and analyses, I hope you can make more rational investment decisions, especially high-net-worth clients from all around the world.
Singapore’s savings insurance market offers a wide array of choices. Different products within the same category can vary significantly in design, so investors need to compare specific details carefully. A good benchmark for horizontal comparison is the Internal Rate of Return (IRR).
While Singapore’s savings insurance investment channels are generally conservative, resulting in relatively low returns, the stability of dividends over the long term suits overseas clients with medium to low-risk tolerance. As global interest rates decline, insurance companies face challenges in maintaining current dividend levels, potentially leading to a shift towards equity investments for better returns.
For clients with lower risk tolerance, it is crucial to consider not just the total expected returns but also the proportion of guaranteed returns within the total returns when purchasing savings insurance. Despite the stability of dividends in Singapore’s savings insurance, they remain non-guaranteed.
Overall, rational investment is the key to success. By clearly understanding your financial goals, risk tolerance, and investment horizon, you can better choose savings insurance products that suit you, achieving both financial growth and risk protection. I hope this article helps you more easily and rationally select the best savings insurance products in Singapore.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
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