An endowment is basically a protected saving plan whereby the savings objective (let’s say you want to save RM 100,000) is protected against various risks such as death, disabilities or dread diseases.

It’s also known as a “create first and save later” method rather than a “save first and create later” method (i.e. fixed deposit).

In the case of the unfortunate events, a lump sum cash would be payable to the beneficiary.

A typical endowment plan is usually available in 12-year term, 15-year term or even for as long as 30-year term.

From the tax perspective, a Malaysian citizen is allowed to relieve up to RM 6,000 for contributing to an endowment plan (inclusive of existing KWSP contributions if any).

There are also many other specific benefits which may vary from company to company such as withdrawal facilities, creditor/bankruptcy proof etc.

You should find out more details from your trusted consultants.

Public Bank launches endowment plan…

The Plan has a fund size of A$33.3mil and is underwritten by AIA. It will provide a guaranteed return of 5% per annum for five years and policyholders will get life insurance coverage of up to 125% of single premium.

The five-year single premium endowment plan, the first of its kind in Malaysia, will be sold exclusively by Public Bank at its branches for a limited period of two months, effective Monday.

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