Great Eastern GREAT SP Series 10: 1-Year Endowment Plan With 4% p.a. Guaranteed Returns at Maturity
10 March 2023 Update
Sales of Great Eastern’s GREAT SP Series 10 have ended. Do keep a look out on Seedly as we will bring you the latest news about the latest Endowment Plans!
Considering that the interest rate for this month’s Singapore Savings Bond (SSB) is only 3.01% per annum (p.a.) if you held it for one year.
Have you ever considered an endowment plan like, say…
Great Eastern’s GREAT SP Series 10?
TL;DR: Great Eastern SP Series 10 — Enjoy Guaranteed Return of 4.0% After 1 year
For the uninitiated, Great Eastern (GE) just launched a limited tranche of its GREAT SP Series 10 single premium non-participating endowment plan.
Do note that the availability of this tranche is on a first-come-first-serve basis.
So if you have short-term financial goals and are unwilling to take on much investing risk, this might be a decent way to grow your savings.
But I digress. Here’s all you need to know about Great Eastern GREAT SP Series 10:
|Details||Great Eastern GREAT SP Series 10|
|Policy Term||1 Year|
(1-Year Policy Term)
|Capital Guaranteed||100% guaranteed if held to maturity, and no policy claims or alterations are made during the policy term|
|Single Premium||One lump sum
Can be purchased online with a minimum single premium of $10,000²
|Payment Options||Cash, (Bank transfer or eGIRO)
Supplementary Retirement Scheme (SRS) funds
|Payout Options For Returns||Returns are paid out after 1 year|
|Death and Total and Permanent Disability Benefit||105% of single premium³|
|Issuance||Guaranteed acceptance regardless of health condition|
|Entry Age||17 - 80 (age next birthday)|
|Policy Protection||Up to specified limits by the
Singapore Deposit Insurance Corporation (SDIC)
¹Guaranteed survival benefit of 4.0% of the single premium will be payable on survival of the life assured at the end of the policy term
²The minimum single premium amount will depend on the entry age (as of next birthday) of the life assured and the payment method.
³If the life assured dies or suffers from Total and Permanent Disability (TPD), Great Eastern will pay 105% of the single premium², or the surrender value of the policy, whichever is higher, less any indebtedness under the policy. Presumptive TPD is applicable for the whole of the policy term. For other forms of TPD, the TPD must occur before the policy anniversary on which the life assured is age 65 next birthday. Please refer to the product summary for details on presumptive TPD and other forms of TPD.
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- GREAT SP Series 10 Returns
- GREAT SP Series 10 Minimum Amount
- GREAT SP Series 10 Payment Methods
- Death and Total Permanent Disability (TPD) Benefits + Surrender Value
- Endowment Plan Great Eastern: GREAT SP Series 10 Returns and Payout Options
- Pros & Cons of GREAT SP Series 10
- Should I Invest in GREAT Sp Series 10?
Great Eastern SP Series 10: 4.0% p.a. Guaranteed Returns With One Year of Commitment, Capital Guaranteed
I know, I know. The GREAT SP Series 10, with its 4.0% p.a. guaranteed returns and a short-term commitment of just one year, won’t help you achieve (FIRE) Financial Independence. Retire Early in a hurry.
This is not that kind of investment.
But if you have a short-term financial goal like saving for your wedding, home renovation, a car, or your first home, etc.
This 100% capital-guaranteed endowment plan (after one year) is a decent option, as preserving the money invested should be your top priority when saving for a short-term goal.
Great Eastern SP Series 10 Single Premium 2023
In terms of the investment amount, you can put in a minimum of $10,000.
How Much Should an Endowment Plan Cost?
This means there’s no cap on the amount you can invest, provided you meet the minimum amount of $10,000 for each policy.
You can also buy multiple Great Eastern Singapore GREAT SP Series 10 plans.
Invest with Cash (Bank Transfer, GIRO, Paynow, or Cheque) or SRS
The good news is you can buy the GREAT SP Series 10 endowment plan with cash through bank transfer or General Interbank Recurring Order (GIRO) and your Supplementary Retirement Scheme (SRS) funds.
However, if you’re considering making payment using your SRS funds, note that the prevailing yearly contribution limit for SRS is $15,300 for Singapore Citizens (SCs) and Singapore Permanent Residents (SPRs) and $35,700 for foreigners.
As such, please ensure sufficient balance in your SRS account before proceeding with this.
Purchasing this policy is also pretty simple, as you can choose to buy this policy online.
Who Can Buy This Policy
Purchasing this plan is simple and hassle-free, as you can do so online via this link using Singpass MyInfo.
Note that you must be between 17 and 80 (age next birthday) to purchase GREAT SP Series 10.
Death and Total Permanent Disability (TPD) Benefits + Surrender Value
GREAT SP Series 10 also offers added Death and TPD protection with guaranteed acceptance, i.e. no medical assessment is needed.
Unfortunately, suppose the life assured dies or suffers from Total Permanent Disability (TPD).
In that case, Great Eastern will pay out 105% of the single premium or the surrender value of the policy, whichever is higher, less any indebtedness under the policy.
For example, if you invested $100,000, here is the death benefit and surrender value amount:
|End of policy year||Total premium paid to-date||Death benefit guaranteed||Surrender value guaranteed|
GREAT SP Series 10 Returns and Payout Options
To illustrate the returns which you will be getting, we will be using a single premium of $100,000 over one year as an example:
Are Endowment Plans Worth it?
Pros of Great Eastern GREAT SP Series 10
- Guaranteed returns of 4.0% p.a. and 100% capital Guaranteed after holding the Endowment plan to maturity (one year)
- Short tenure
- Hassle-free online application with no medical check-up required
- Basic insurance coverage for death and TPD without a medical assessment.
Cons of Great Eastern GREAT SP Series 10
- High minimum investment amount of $10,000..
Remember, you know your financial situation the best, so plan ahead and ensure your cash flow works!
Which Endowment Plan Is The Best? Should I Invest in GREAT SP Series 10?
If you were previously looking at low-risk investments like the Singapore Savings Bonds (SSB) and Fixed Deposits:
The GREAT SP Series 10 endowment plan can also be something you might want to consider as it offers slightly better interest than the SSB and Fixed Deposits.
This assumes you have a sum of money ready to be locked in for the next year.
If you want liquidity, you should not look at the GREAT SP Series 10, as SSBs can be withdrawn after a month, and Fixed Deposits have tenures starting from two months.
Watch Out For The “Consumer Mentality”
Also, it’s essential for us as consumers to approach a financial product objectively. This would ensure that we do not purchase something that we don’t need just because they’ve used buzzwords like:
“Limited Tranche Only” or “While Stocks Last”?
Do not feel pressured or give in to FOMO (Fear Of Missing Out) and take up these policies just because.
I mean, the rate at which insurance providers release these short-term endowment plans is probably more regular than when my dog tries to run out of the house when the gates are left unattended (read: A LOT).
So even if you missed this, we might just see another or an even better one next time!
In short, DON’T buy into something just because you think you will be losing out if you don’t. There are plenty of other financial products around.
Like every financial product and financial planning, there is no one-size-fits-all solution to your personal finance journey. However, with careful research and continuous learning, you will better plan your finances.
And as always, read all terms and conditions for any policies or investment instruments.
Approach a professional (like your trusted financial advisor) to review your portfolio and clarify clauses and questions you might have missed before making any decision.
Disclaimer: The Information provided by Seedly does not constitute an offer or solicitation to buy or sell any insurance product(s). It does not consider the specific objectives or particular needs of any person. We strongly advise you to seek advice from a licensed insurance professional before purchasing any insurance products and/or services. The policy is protected up to specified limits by SDIC.
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