First Look at NTUC Income’s New 2-year Single Premium Endowment Plan — Gro Capital Ease: Guaranteed Return of 1.85% p.a.^

This post was written in collaboration with NTUC Income. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.

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Covid-19 is still ongoing but there have been signs of recovery — we’ve exited Circuit Breaker, businesses are reopening and financial markets seem to be rallying.

However, there is still a need to remain cautious.

Worldwide cases are still climbing (there is a new cluster in Beijing), and investors are still exposed to volatility and uncertainty. 

During this time, it may be prudent that we lower our risk appetite, and gravitate towards protective measures while still growing our money.

One timely launch is from established insurer, NTUC Income’s (“Income”) Gro Capital Ease, a 2-year non-participating, single premium endowment plan that offers a guaranteed return of 1.85% p.a.^

 

A short primer on Income

My parents bought Income’s policies for me when I was a wee infant, so I’m well-acquainted with the name.

Income, which was established in 1970, prides itself as being the only insurance co-operative in Singapore. It offers a spectrum of insurance plans, including life, health and general insurance, and serves over 2 million customers in Singapore.

If you’re concerned about Income’s income (geddit?), it has over $41.9 billion in assets under management in 2019 and its credit rating has stood at AA- since 2009.

Here’s a closer look at the features of this product:

 

Guaranteed return of 1.85% p.a.^

With a guaranteed return of 1.85% p.a.^, Gro Capital Ease is a viable option for risk–averse savers. You even get some extra back after the 2-year policy term, which is actually one of the shortest durations for an endowment plan currently.

When this interest is compounded, this means that the guaranteed maturity benefit on your single premium amount at the end of 2 years is 103.73%*.

Using $100,000 as an example, you would get $103,734 (rounded to the nearest dollar) after 2 years, based on a guaranteed maturity benefit of 103.73%* of the single premium. 

 

Additional protection for your portfolio

This plan also provides protection against death & total and permanent disability (TPD before age 70) during the 2-year policy term. Should you die or become totally and permanently disabled within one year from the cover start date of the policy, Gro Capital Ease will pay out the net single premium. If you are in your second year of the policy term, it will pay out 105% of the net single premium.

 

Low barrier to entry, application is a breeze

Most of us have been working for at least a few years, and even if we haven’t, we probably earned some money from side hustles like giving tuition and other part-time endeavours.

To get started with Income’s Gro Capital Ease, there are 2 options:

• Apply online: Minimum single premium of $5,000 which can be paid via eNets, PayNow QR or Supplementary Retirement Scheme (SRS) funds.
• Apply through a financial adviser representative: Minimum single premium of $20,000, which can be paid via cash or SRS funds.

What’s more, no medical check-up is required so acceptance is guaranteed!

To start making your hard-earned savings work harder for you, apply for Income’s Gro Capital Ease here.

This plan is available on a limited tranche & first come, first served basis only.

 

Notes

^ The guaranteed yield at maturity of 1.85% p.a. will be paid out at the end of the 2-year policy term, provided that the insured survives at the end of the policy term, with no policy alterations or claims made during the entire policy term.

* The guaranteed maturity benefit of 103.73% (rounded to the nearest 2 decimal places) of the single premium is based on the guaranteed yield at maturity of 1.85% p.a.

 

Disclaimer: All opinions expressed here are my own. This information is meant for your general knowledge and does not regard any specific investment objectives, financial situations or particular needs any person might have and should not be relied upon as financial advice. You should seek advice from a qualified insurance adviser for customised advice on your financial needs and product suitability.

Protected up to specified limits by SDIC.
This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is correct as at 23 June 2020