We all dream of having the perfect wedding…a celebration like no other to mark joyous new beginnings in life. However, ask anyone who got married recently and they will tell you that paying for the customary festivities is no easy feat. While many Singaporeans tend to rely on personal loans and perhaps credit cards to pay for wedding expenses, you can do things differently (and smartly) by relying on an endowment plan instead.
The cost of a wedding in Singapore averages around $50,000. That figure can go north of $100,000 too for a more lavish ceremony. You have to factor in the costs of the wedding rings, gown, dinner banquet, and even the honeymoon, among other things. And yes, how can we forget the photographer’s bills too? All of these can add up to a pretty penny indeed.
Now, considering that most people plan to get married in their late 20s or early 30s, depending on savings to pay for the festivities is hardly an option. After all, who has that much money in the bank?
This is where an endowment plan can step in to help.
Wondering how? Let’s first quickly understand what an endowment plan really is.
An endowment plan is a hybrid insurance-savings product. It helps you save up for certain milestones in your life, while also offering death benefit coverage during the policy period. You can choose between short-term and long-term endowment plans, based on certain financial goals or milestones in your life. The plan pays you a lump sum maturity benefit at the end of the set tenure.
Endowment plans really help you stick with your goals of saving. If you simply choose to squirrel money away into a savings account, you might actually skip a few months and go off track since there is no fixed commitment drawing you in. An endowment plan ensures that you put aside money for the entire premium tenure so that you stay focussed on saving up for your big day, almost like a friend helping you stick with your goals. You can choose to save smaller amounts of money for a longer period or larger sums for a shorter period, whatever works for you.
Plus, endowment plans have the potential to grow your money at a higher rate than a savings account. And don’t worry about security. Leading insurers in Singapore promise to safeguard your savings from market volatility.
That’s not all…
Insurance companies in Singapore often allow you to nominate your spouse as the secondary life assured on endowment plans. You can, thus, keep your partner secured financially against any unforeseen events. A simple yet important way to show you care.
When taking an endowment plan, do ask your insurer for a list of available riders as well. You might want to opt in for a rider that waives premiums in case of certain illnesses as covered in the policy.
Do speak to your insurer today about an endowment plan that can help you have your dream wedding. Good luck!