Savings plan glossary: English–Chinese terms for endowments, annuities, CPF and SRS

In Singapore insurance usage, a life insurance policy whose main purpose is to build and pay out cash value over a set period, with a smaller insurance element attached. It covers endowments that mature as a lump sum and annuities or retirement income plans that pay a stream of income. Part of the payout is guaranteed; in participating plans the rest is not guaranteed until declared. It is not a bank deposit.

A life insurance policy that pays a maturity benefit at the end of a fixed term, or a death benefit if the life assured dies earlier. MoneySense notes policies usually mature after terms such as 10, 15 or 20 years, and cautions that endowments are sometimes presented as if they were deposits. Endowments can be participating, non-participating or anticipated in design.

A policy that shares in the profits of the insurer's participating fund through bonuses or cash dividends. Its benefits have a guaranteed layer written into the contract and a non-guaranteed layer that depends on the fund's investment returns, expenses and claims experience. Bonuses are approved by the insurer's board, taking the appointed actuary's advice into account.

A policy that does not share in the participating fund's profits. Its maturity, surrender and death benefits are fixed in the contract, so the policyholder knows the values in advance but receives no bonus upside. MoneySense describes non-par endowments as offering guaranteed maturity and cash values. Capital-guaranteed plans may be participating or non-participating; check the product summary.

An endowment that pays part of the sum assured at pre-specified intervals during the term, instead of a single lump sum at maturity. The periodic payouts are usually guaranteed amounts, with bonuses applying in participating versions. Because money is returned along the way, the final maturity payment is smaller than for an otherwise similar plan without interim payouts.

A savings plan in which the guaranteed surrender value at a stated policy year, often maturity, is not less than the total premiums paid, subject to the policy terms such as no alterations or partial surrenders. Surrender before that year can still return less than premiums. The guaranteed part is covered by the PPF Scheme within its caps; it is not a deposit.

A premium paid once, in a lump sum, at the start of the policy. Single-premium designs are the only type allowed for SRS-funded insurance and, under CPFIS, alongside recurring single premiums. Because the whole premium is committed on one date, liquidity and the guaranteed surrender values in early years deserve particular attention.

Premiums paid at fixed intervals — monthly, quarterly, half-yearly or yearly — over a premium payment term. Missing payments can cause the policy to lapse or become paid-up, depending on its terms. New regular-premium policies cannot be bought with CPFIS savings (not allowed since 1 January 2001), and regular-premium designs do not qualify for SRS funding.

A series of separate single premiums paid into the same policy over time, each treated as its own single-premium purchase rather than as a contractual regular premium. MOF's SRS FAQ booklet (December 2017) allows recurrent single-premium annuity and non-annuity plans to be bought with SRS funds, and CPFIS also permits them.

The basic amount the insurer agrees to pay under the policy, typically on death or maturity, before adding bonuses. In participating plans, declared reversionary bonuses are added to the sum assured. In savings plans the sum assured is often set close to the total premiums, so the insurance element is modest compared with protection policies.

The amount a policy is worth if surrendered, built up from premiums less charges plus any vested bonuses or credited interest. It is the basis for surrender values, policy loans and CRS reporting. In the early years of most savings plans, the cash value is below total premiums paid because initial costs are recovered first.

The amount paid when the policy reaches the end of its term while the life assured is alive. In a participating endowment it equals the guaranteed maturity value plus declared reversionary bonuses and any terminal bonus. Only the guaranteed maturity value and bonuses already vested are certain before the maturity date.

The amount paid if the life assured dies during the policy term. For savings plans it is often the higher of a stated percentage of premiums paid or the surrender value, plus vested bonuses. For SRS-funded policies, life cover including total and permanent disability is capped at three times the single premium (MOF, 2017 booklet).

The policy term is the period from start to maturity; the premium payment term is the period during which premiums are due. They can differ — a plan may require five years of premiums but mature after twenty. Both determine liquidity: the longer the term, the longer money is committed before guaranteed values catch up with premiums.

An insurance policy that typically guarantees fixed payments at regular intervals, usually monthly, in exchange for a premium (MoneySense). Annuities can be immediate or deferred, and life or term. Participating annuities add non-guaranteed bonuses to the guaranteed payouts. MoneySense notes you cannot take a loan against an annuity, and early surrender may result in losses.

An annuity bought with a single premium that begins paying soon after purchase, typically within the first policy year. It converts a lump sum straight into income and suits someone already at or near retirement. Once payouts start, the premium is generally no longer accessible as a lump sum, so the liquidity trade-off should be weighed before buying.

An annuity in which payouts start at a later date chosen at purchase, such as age 65. Premiums paid during the deferment period build up value: a guaranteed amount set in the contract plus, in participating versions, non-guaranteed bonuses. CPF LIFE works in a similar way: payouts can start from age 65, and CPF Board states they increase by up to 7% for each year deferred, up to age 70.

An annuity that pays for as long as the annuitant lives, transferring longevity risk to the insurer. MoneySense states CPF LIFE is a life annuity. For SRS, IRAS treats life annuities differently: the 10-year withdrawal window does not apply, and 50% of the annuity payments are taxable each year for as long as they are received.

An annuity that pays for a fixed period, such as 10 or 20 years, and then stops, whether or not the annuitant is still alive. It suits bridging a known gap, for example from early retirement until CPF LIFE payouts begin. For SRS-funded term annuities, the remaining surrender value is deemed withdrawn at the end of the 10-year withdrawal window (IRAS).

An annuity whose payouts consist of a guaranteed portion and a non-guaranteed portion that depends on the participating fund's performance. MoneySense notes such annuities include "a non-guaranteed component". Some designs let the policyholder take the non-guaranteed portion as income or leave it to accumulate with the insurer. Future non-guaranteed payouts can be reduced.

A market term for a policy that combines an accumulation phase, during which premiums build value, with a payout phase, during which the policy pays a regular income for a fixed period or for life. Legally it is usually structured as a deferred annuity or as an endowment with scheduled payouts. Check which payouts are guaranteed and what happens on death or surrender.

The two stages of a retirement income plan. During accumulation, premiums are paid and the policy's value grows; during the payout phase, income is paid out. Liquidity, death benefits and surrender values often change at the switch between phases, so a benefit illustration should be read separately for each stage.

The risk of outliving one's savings. SingStat reported that Singapore residents' life expectancy at birth was 83.9 years in 2025 (SingStat, 3 Jun 2026). Life annuities, including CPF LIFE, address longevity risk by paying income for life, whereas endowments and term annuities stop at a fixed date.

The present value of a stream of future payments, calculated as a single lump-sum amount. For annuities, the PPF Scheme cap is expressed as S$100,000 of aggregated commuted value of guaranteed benefits per life assured per insurer (SDIC). Commuted values also appear when an insurer offers to pay future guaranteed payouts as a lump sum, for example on death.

An amount the insurer is contractually bound to pay, such as the guaranteed maturity value, guaranteed surrender value or guaranteed annuity payout. Guaranteed benefits do not depend on future fund performance. They are the values protected by the PPF Scheme, within caps, and the values to use when making like-for-like comparisons with deposits or government securities.

Any amount that depends on future decisions or performance, including future reversionary, terminal and cash bonuses and non-guaranteed annuity payouts. MoneySense states bonuses and cash dividends are non-guaranteed until declared. In a benefit illustration, non-guaranteed values are projected at the 3.00% and 4.25% illustration rates for SGD participating policies and may be higher or lower in practice.

A bonus declared periodically, usually yearly, and added to the sum assured of a participating policy. Once declared and added, the LIA/MoneySENSE guide states the insurer cannot subsequently reduce it, but future bonus rates can change. On surrender, MoneySense notes that only a proportion of reversionary bonuses is payable, as their cash value.

A one-off bonus that may be paid when a participating policy ends through maturity, death claim or surrender. MoneySense states it is only calculated at that point. Because it is not added in advance, it is the most variable part of a par policy's projected value and is usually reduced or not paid on early surrender.

A bonus paid out in cash, or left with the insurer to accumulate at a non-guaranteed interest rate, rather than added to the sum assured. Cash bonuses are non-guaranteed until declared. Leaving them to accumulate increases future values but the accumulation rate itself can change.

The pool of assets backing participating policies, kept separate from the insurer's other funds. Its investment returns, expenses and claims experience drive bonuses. MAS Notice 320 sets governance and disclosure requirements, and the product summary must report the fund's asset mix, recent net investment returns and expense ratios. By statute, shareholders can receive at most 1/9 of the value of bonuses allocated to policyholders (LIA guide; MAS).

The practice of spreading investment gains and losses of the participating fund over several years when setting bonuses, so that bonus rates move more gradually than market returns. Smoothing reduces year-to-year volatility but means bonuses can lag both rising and falling markets. The approach must be described in the product summary under MAS Notice 320.

A bonus that has been declared and attached to the policy so that it can no longer be removed, subject to the policy terms. Vested bonuses form part of the guaranteed benefits for PPF purposes (SDIC). On surrender, the cash value of vested reversionary bonuses is paid, which may be less than their face amount.

The actuary an insurer must appoint to advise on matters such as the financial condition of its participating fund and the bonuses it can support. Bonus declarations are approved by the insurer's board, taking the appointed actuary's recommendations into account (MoneySense). The appointed actuary's role is a governance safeguard, not a guarantee of bonus levels.

The document showing, year by year, the premiums paid, the guaranteed values and the projected non-guaranteed values of a policy, together with deductions and distribution cost. For SGD participating policies, non-guaranteed values are shown at two illustration rates. LIA sets the standard format. See How to read a benefit illustration.

The assumed rates used to project non-guaranteed values in participating policy illustrations. Since 1 July 2021, LIA caps them at 4.25% per annum (upper) and 3.00% (lower) for SGD-denominated policies, reviewed annually. LIA states they are purely illustrative and do not represent upper or lower limits on actual fund performance.

A document describing the nature and objective of the product, the insurer, benefits, charges, exclusions and surrender and claim terms. For participating policies, MAS Notice 320 requires it to disclose the fund's investment strategy, asset mix, past net investment returns, total expense ratios, smoothing method and recent bonus rates for the plan.

A table in the benefit illustration showing how charges reduce what you might get back. LIA's format compares the Value of Premiums Paid To-date with the Effect of Deductions To-date and the Total Surrender Value. Deductions include the cost of insurance, distribution cost, expenses, surrender charges, expected tax and, for par policies, expected transfers to shareholders.

The illustration's disclosure of how much of the premium is expected to cover the cost of distributing the policy over the stated period. LIA's format states it "is not an additional cost to you; it has already been allowed for in calculating your premium". It helps explain why early surrender values are low.

The amount payable if the policyholder ends the policy before maturity. It equals the guaranteed surrender value plus the cash value of vested bonuses and, sometimes, part of the terminal bonus. MoneySense warns that early termination may result in losses, because surrender values in early years are often below premiums paid.

The first policy year in which the surrender value equals or exceeds total premiums paid. The guaranteed break-even year uses only guaranteed surrender values; the illustrated break-even year uses total values at an illustration rate. Only the guaranteed break-even year is contractual, and it is the more useful figure for liquidity planning.

A measure of a participating fund's expenses — such as investment and management costs — expressed as a percentage of fund assets. MAS Notice 320 requires the product summary to disclose the fund's total expense ratios for the past three years. Higher expenses reduce the returns available for bonuses, other things being equal.

The annualised rate at which the present value of premiums paid equals the present value of benefits received. It allows a savings plan's guaranteed or illustrated values to be compared with T-bill, SSB or fixed-deposit rates over the same horizon. Calculate it separately on guaranteed values and on illustrated totals; only the former is certain.

The 14-day period, starting from the day you receive the policy documents, during which you can cancel a life policy and get back premiums less medical and other expenses (MoneySense). All life insurers in Singapore grant it. It is the last practical opportunity to check the illustration without surrender losses.

A document provided with policies that combine protection and savings, enabling the buyer to compare the bundled product's benefits against buying a term product separately (MoneySense). For a savings plan, it highlights how much of the premium relates to insurance cover versus the savings element.

A loan from the insurer secured on a policy's cash value. Many endowments offer it; annuities generally do not — MoneySense states you cannot take a loan against annuity policies. Interest accrues on the loan, MoneySense cautions the charges can be steep, and any outstanding loan is deducted from maturity, death or surrender payouts.

A national longevity insurance annuity scheme providing monthly payouts for life (CPF Board). Citizens and PRs born in 1958 or later with at least S$60,000 in retirement savings when payouts start are automatically included. It offers Escalating, Standard and Basic plans, and CPF LIFE savings are guaranteed by the Singapore Government.

The CPF account created at age 55 that holds savings set aside for retirement and funds CPF LIFE payouts. Since January 2025, Special Account savings of members aged 55 and above are transferred to the RA up to the cohort Full Retirement Sum, with any balance going to the Ordinary Account (CPF Board).

Benchmarks for how much to set aside in the RA at 55. For members turning 55 in 2026: BRS S$110,200, FRS S$220,400, ERS S$440,800. CPF Board estimates monthly payouts from 65 of about S$950, S$1,780 and S$3,440 respectively for a male member on the Standard Plan (page updated 16 June 2026).

The scheme allowing members to invest Ordinary Account savings above S$20,000 and Special Account savings above S$40,000 in approved instruments. Insurance must be offered by CPFIS-included insurers, insure the member, and be single or recurring single premium; endowments must mature by the later of age 62 or the prescribed minimum retirement age (CPF Board, Annex A).

Voluntary cash or CPF transfers into a member's own or a family member's retirement savings to raise future CPF LIFE payouts. Cash top-ups may qualify for tax relief of up to S$8,000 for self and S$8,000 for family members per Year of Assessment (IRAS, YA 2026), within the S$80,000 overall relief cap. Top-ups cannot be withdrawn as cash.

A questionnaire that CPF members must complete before investing under CPFIS for the first time, required since 1 October 2018. It helps members assess whether they understand the risks and costs of investing and whether CPFIS suits them. Completing it does not mean any product is endorsed by CPF Board.

A voluntary scheme run through SRS operator banks to encourage retirement saving. Annual contribution caps are S$15,300 for citizens and PRs and S$35,700 for foreigners (MOF). Contributions qualify for tax relief within the S$80,000 overall relief cap, returns are not taxed before withdrawal, and 50% of qualifying withdrawals are taxable.

One of the three banks that administer SRS accounts: DBS, OCBC and UOB. Each person may hold one SRS account. The operator processes contributions, investments and withdrawals, and reports taxable withdrawals to IRAS. For SRS-funded insurance, it pays the premium to the insurer and receives maturity proceeds and annuity payouts back into the account.

For SRS purposes, the age from which withdrawals are penalty-free and qualify for the 50% tax concession. IRAS applies the statutory retirement age prevailing at the time of your first SRS contribution; it is 64 effective from 1 July 2026. Later changes do not affect members who contributed earlier.

The rule that only 50% of SRS withdrawals made on or after the statutory retirement age, or on medical grounds, is taxable. Withdrawals can be spread over 10 years from the first penalty-free withdrawal; for life annuities the 10-year limit does not apply (IRAS). Withdrawals before the statutory retirement age are fully taxable with a 5% penalty.

The treatment of SRS balances remaining at the end of the 10-year withdrawal period as if withdrawn. IRAS states that insurance policies such as endowments and term annuities need not be surrendered, but their surrender value is deemed withdrawn and 50% of it is taxed in the following year. Life annuities are excluded.

An income tax relief for premiums on qualifying life policies, limited to the lower of S$5,000 minus CPF contributions or up to 7% of the insured value or premiums paid. IRAS lists endowment policies as not qualifying, and the relief is nil if CPF contributions in the previous year were S$5,000 or more.

The international standard for automatic exchange of financial account information between tax authorities. Under IRAS guidance, a Cash Value Insurance Contract is a reportable account, and Singapore financial institutions report its cash or surrender value for holders tax resident elsewhere. IRAS notes the amended CRS applies from 1 January 2027.

The scheme administered by SDIC that protects guaranteed benefits of Singapore-issued policies if an insurer fails, for residents and non-residents. Caps per life assured per insurer: S$500,000 aggregated guaranteed sum assured and S$100,000 aggregated guaranteed surrender value for life policies; S$100,000 aggregated commuted value of guaranteed benefits for annuities.

The scheme protecting Singapore-dollar savings, fixed and current account deposits at member banks, including SRS monies placed as deposits, up to S$100,000 per depositor per member bank (SDIC). Foreign-currency deposits, structured deposits and investment products are not covered. Endowments and annuities fall under the PPF Scheme instead.

The organisation that administers both the Deposit Insurance Scheme and the Policy Owners' Protection Scheme in Singapore. Its website sets out the scope of coverage and caps for each scheme and is the reference point for what happens to deposits and policies if a member institution fails.

The trade association of life insurers in Singapore. It sets industry standards such as the benefit illustration format and the caps on illustration rates for participating policies, publishes consumer guides, and releases industry statistics — for example, S$12.17 billion paid on matured policies in 2025 (LIA, 11 February 2026).

The Singapore Government's national financial education programme, led by MAS. Its guides on endowments, participating policies, annuities and insurance documents are the main neutral references used on this site for definitions. MoneySense does not recommend products; its role is consumer education.

The MAS notice on the management of participating life insurance business, applying to all direct life insurers. It sets governance standards for participating funds and requires disclosures in product summaries and annual bonus updates, including fund asset mix, past returns, expense ratios and bonus history. It was last revised on 16 November 2020.

An independent body that resolves disputes between consumers and financial institutions, including insurers. Its process starts after a complaint to the institution (MoneySense); filing with FIDReC is free of charge, and it adjudicates claims up to S$150,000 per claim (FIDReC). Keeping the benefit illustration, product summary and advice records makes a complaint easier to assess.

A short-term Singapore Government Security with a tenor of 6 months or 1 year, sold at auction with a minimum of S$1,000 in multiples of S$1,000. SRS and CPF savings can be used. For individuals, interest earned on Singapore Government Securities is tax exempt (MAS, July 2026). It is a common benchmark for short-term savings returns.

A Singapore Government Security for individuals with a 10-year step-up coupon schedule fixed at purchase. Minimum S$500 per bond, maximum individual holding S$200,000, redeemable in any month with no penalty, and exempt from tax (MAS, August 2026). Its "average return if held for 10 years" is a useful comparator for 10-year endowments.

A bank deposit placed for a fixed period at a stated interest rate. Singapore-dollar fixed deposits at member banks are covered by deposit insurance up to S$100,000 per depositor per bank. Interest from approved banks is not taxable for individuals (IRAS). Breaking a deposit early may forfeit some or all of the interest, depending on the bank's terms.

Two ways to name who receives policy proceeds on death. A trust nomination, limited to spouse and children, creates a trust and gives up the policyholder's rights to deal with the policy alone; a revocable nomination can be changed at any time. Trust nominations are not allowed for CPFIS- and SRS-funded policies (LIA, 2026; MOF).