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Great Eastern GREAT SP Series 9: 2-Year Endowment Plan With 3.38% p.a. Guaranteed Returns at Maturity

profileMing Feng

Considering that the interest rate for this month’s Singapore Savings Bond (SSB) is only 3.21% per annum (p.a.) if you held it for two years.

Have you ever considered an endowment plan like, say…

Great Eastern’s GREAT SP Series 9?


TL;DR: Great Eastern SP Series 9 — 2-Year GREAT Eastern Endowment Plan With 3.38% Guaranteed Returns at Maturity

For the uninitiated, Great Eastern (GE) just launched a limited tranche of its GREAT SP Series 9 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 9:

DetailsGreat Eastern GREAT SP Series 9
Policy Term2 Years
Guaranteed Yield
at Maturity
(2-Year Policy Term)
3.38% p.a.¹
Capital Guaranteed100% guaranteed if held to maturity, and no policy claims or alterations are made during the policy term
Single PremiumOne lump sum
Can be purchased online with a minimum single premium of $10,000²
Payment OptionsCash, (Bank transfer or eGIRO)
or
Supplementary Retirement Scheme (SRS) funds
Payout Options For ReturnsYearly pay-out of returns
or
Accumulation until maturity
Death and Total and Permanent Disability Benefit105% of single premium³
IssuanceGuaranteed acceptance regardless of health condition
Entry Age17 - 80 (age next birthday)
Policy ProtectionUp to specified limits by the
Singapore Deposit Insurance Corporation (SDIC)

¹Guaranteed survival benefit equivalent to 3.38% of the single premium will be payable annually on survival of the life assured at the end of each of the two policy years.
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.

Sign Up for GREAT SP Series 9

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Great Eastern SP Series 9: 3.38% p.a. Guaranteed Returns With Two Years of Commitment, Capital Guaranteed

I know, I know. The GREAT SP Series 9, with its 3.38% p.a. guaranteed returns and a short-term commitment of just two years, 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 weddinghome renovation, a car, or your first home, etc.

Source: Homerenoguru

This 100% capital-guaranteed endowment plan (after two years) is a decent option, as preserving the money invested should be your top priority when saving for a short-term goal.

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Great Eastern SP Series 9 Single Premium 2022

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 9 plans.

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Invest with Cash (Bank Transfer, GIRO, Paynow, or Cheque) or SRS

The good news is you can buy the GREAT SP Series 9  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 9.

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Death and Total Permanent Disability (TPD) Benefits + Surrender Value

GREAT SP Series 9 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 yearTotal premium paid to-dateDeath benefit guaranteedSurrender value guaranteed
1$100,000$105,000$97,125
2$100,000 $105,000$100,000

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GREAT SP Series 9 Returns and Payout Options

To illustrate the returns which you will be getting, we will be using a single premium of $100,000 over two years as an example:

Source: Great Eastern

There are two payout options that you can choose from.

1. Paid-Out Option

The Paid-Out Option is where policyholders will receive their cash payout annually.

If you choose this option, $3,380 will be paid to you in your first year, and another $3,380 plus your capital of $100,000 at maturity.

In total, you will receive $6,760 in returns at the end of two years.

2. Accumulation Option

The Accumulation Option is for reinvesting the cash payout from your first year to generate more returns.

If you choose this option, you will receive $6,844 in returns based on the prevailing accumulation rate of 2.50% and 1.00% upon cash payout.

But if you choose this option, you will need to hold this policy to maturity, and you will only get back your capital of $100,000 plus the returns after two years of holding the policy.

Note that this accumulation rate of returns is not guaranteed and can be changed from time to time.

With that in mind, here are the Pros and Cons of the policy to take note of.

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Are Endowment Plans Worth it? Pros of Great Eastern GREAT SP Series 9

  • Guaranteed returns of 3.38% p.a. and 100% capital Guaranteed after holding the Endowment plan to maturity (two years)
  • 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 9

  • Two-year lock-in period without payout if you choose the accumulation option
  • High minimum investment amount of $10,000.
Source: Know Your Meme

Remember, you know your financial situation the best, so plan ahead and ensure your cash flow works!

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Which Endowment Plan Is The Best? Should I Invest in GREAT SP Series 9?

If you were previously looking at low-risk investments like the Singapore Savings Bonds (SSB) and Fixed Deposits:

The GREAT SP Series 9 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 two years.

If you want liquidity, you should not be looking at the GREAT SP Series 9, 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 are releasing these short-term endowment plans is probably more regular than the times my dog tries to run out of the house when the gates are left unattended (read: A LOT).

In fact, NTUC Income also just released its Income Gro Capital Ease with 2.98% p.a. returns upon maturity:

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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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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