• Fabian Lau

Are you mixing it right?

Updated: Apr 8, 2020

Are we getting them mixed up?

An insurance protects your legacy. An endowment grows your legacy.

Many times, people are confused by the added features of an endowment plan and got swayed from their main financial objective. Sales representatives often introduce numerous Riders to a policy.


Riders are add-on feature to a main endowment plan.


What is a Rider?

Just like a side dish added to your main course, Riders are add-on feature to a main endowment plan to enhance the plan's benefits. In a way, riders make a plan looks more attractive and comprehensive.

Examples of riders are insurance related coverage, Female illnesses, accidental coverage, term insurances, premium waiver, hospital cash benefits, etc. Every rider comes at an additional cost and it does not have cash value i.e it does not involve in generating yield. It is, therefore a sunk cost on your policy.


#2 Tip: Endowment Is Not An Insurance


Rider has its benefits but you should not add unnecessary riders. The last thing you want is to realize that your endowment plan is not generating high enough returns for you because part of the premium contributed goes into the cost of riders. Make every dollar count in your Endowment plan and it should never be treated as an insurance tool.

So, Ice cream or Gelato?

P.s: Read on other posts for more Endowment tips.

#comprehensive #endowment #money #savings #finances #advisory #wealthdestined #wealth #insurance #financialplanning

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