Review: China Taiping i-Save - 2.08% pa Guaranteed For Three Years (Limited Tranche)

Another 3-year single premium endowment product is out, and this time it is from China Taiping. It follows shortly after Aviva’s fully subscribed 2.28% product and SingLife’s 2.25% pa offering. Given how simple and similar these products are, you are pretty safe just going for the product with the highest number.

Provider	China Taping
Min Amount	$20,000
Max Amount	$1,000,000
Returns	2.08% pa
Tenure	3 years
Requirements	Cash only
Other Features	– No medical underwriting – 105% death benefit (after 1st year) – Capital guaranteed upon maturity

Aviva’s was sold out in mere days, but SingLife’s Endowment Series Four is still available for now while the tranche is still open. Awkward to promote SingLife’s product while reviewing China Taiping’s policy, but it is what it is: 2.25% > 2.08%.

I have processed a couple hundred thousand dollars for SingLife since the post, and there were actually a lot more enquiries, but most just dropped off after I asked for their personal details. People, you need to provide your personal details if you want to apply for a financial product.

Seth

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Are these products worth it?

Now, I don’t really like regular premium endowment products, but these single premium guaranteed products are a lot closer to fixed deposits than they are to their regular premium brethren, and there is a lot of interest in this space. Some people just want a fuss-free, relatively short term product to park some funds in a conservative manner, and these products give better returns than fixed deposits, albeit with a chance of capital loss should the policy be terminated before its maturity.

If your conditional bank account is full (or you don’t even qualify for higher interest due to a lack of salary or credit card), this seems like the next best bet for an almost risk-free investment. This month’s Singapore Savings Bond gives only 1.43% pa over three years, so that’s a significantly poorer yield.

2.08% vs 2.25%

Amount	2.08%	2.25%	Difference
$20,000	$21,276	$21,381	$105
$50,000	$53,190	$53,452	$262
$100,000	$106,380	$106,903	$523

Compounded over 3 years, the 0.17% pa represents roughly 0.525% of the single premium placed, so if you’re keen on such products, you might want to go for SingLife’s offering before it’s gone.

One reason why you might still consider this is if you have a sum of more than $100,000 to be placed in such products. The Policy Owners’ Protection Scheme only insures up to $100,000 of surrender value per life assured per insurer, so splitting a larger amount of say $150,000 into $100,000 with SingLife and $50,000 with China Taiping would be slightly safer since the entirety of your $150,000 is insured, rather than just $100,000 if you placed all the money with SingLife. A smaller bit of assurance for a relatively short three years, but still some assurance nonetheless.

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