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210322 Great Eastern Endowment Plan GREAT SP Series 6

Great Eastern Singapore GREAT SP Series 6: 1.68% p.a. Guaranteed Returns 3-Year Endowment Plan

profileMing Feng

Considering that the interest rate for this month’s Singapore Savings Bond (SSB) is only 1.41% per annum (p.a.) if you held it for three years.

Have you ever considered an endowment plan like, say…

Great Eastern’s GREAT SP Series 6?


TL;DR: Great Eastern Singapore GREAT SP Series 6 Review: 1.68% p.a. Guaranteed Returns 3-Year Endowment Plan

For the uninitiated, Great Eastern (GE) just launched a limited tranche of its GREAT SP Series 6 single premium non-participating endowment plan.

Well, this policy has a three-year policy term and a guaranteed return of 1.68% p.a. but ONLY if you held it to maturity.

While the return pales in comparison with the Great220 launched in 2019, I guess we will have to make do with the options available to us at this point in time.

If you have short term financial goals and are not willing to take on much risk, this might be an excellent option to grow your savings.

But I digress. Here’s all you need to know about Great Eastern GREAT SP Series 6.

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.


1. 1.68% p.a. Guaranteed Returns With Three Years of Commitment, Capital Guaranteed

I know, I know. The GREAT SP Series 6 with its 1.68% p.a. guaranteed returns and a short-term commitment of just three years won’t help you achieve (FIRE) Financial Independence Retire Early in a hurry.

This is not that kind of investment.

But if you are saving for a short term goal like saving for your weddinghome renovation, a car, or your first home, etc.

Source: Homerenoguru

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

2. Minimum Premium Of $10,000 and Maximum Premium of $9,900,000

In terms of the investment amount, you can put in a minimum of $10,000 and a maximum of $9,900,000.

But, you can buy multiple Great Eastern Singapore GREAT SP Series 6 plans.

This means that there’s no cap on the amount you can invest provided you meet the minimum amount of $10,000 for each policy.

3. Invest with Cash (Bank Transfer + GIRO) or SRS

The good news is you can buy the GREAT SP Series 6 endowment plan with cash through bank transfer or General Interbank Recurring Order (GIRO) and your Supplementary Retirement Scheme (SRS) funds.

But, do ensure that your SRS contribution does not exceed your balance contribution limit available.

Purchasing this policy is also pretty simple as you can choose to purchase this policy online.

Who Can Buy This Policy

Purchasing this plan is simple and hassle-free as you can do so online using Singpass MyInfo. You will just have to be aged between 19 and 80 (age next birthday) to purchase GREAT SP Series 6.

4. Death and Total Permanent Disability (TPD) Benefits

Unfortunately, suppose the life assured dies or suffers from Total Permanent Disability (TPD).

In that case, Great Eastern will payout 105% of the single premium, or the surrender value of the policy, whichever is higher, less any indebtedness under the policy.


Returns of GREAT SP Series 6 and Payout Options

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

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, you will receive $5,040 in interest at the end of three years.

Of which, $1,680 will be paid to you on your first year, $1,680 in year two and another $1,680 plus your capital at maturity.

2. Accumulation Option

The Accumulation Option to reinvest the cash payout from your first year to generate more interest.

If you choose this option, you will receive either $5,167 or $5,090 in interest based on the prevailing accumulation interest rate of 2.50% and 1.00% respectively.

But if you choose this option, you will need to hold this policy to maturity and you will only back your capital plus the interest after three years of holding the policy.

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

Also here are the Pros and Cons of the policy to take note of.


Pros of Great Eastern GREAT SP Series 6

  • Guaranteed returns of 1.68% p.a.
  • 100% capital Guaranteed after three years
  • 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 6

  • Three-year lock-in period if you choose the accumulation option
  • High minimum investment amount of $10,000
  • Returns are not the most exciting.
Source: Know Your Meme

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

Should I Invest In GREAT SP Series 6?

If you were previously looking at low-risk investments like the Singapore Savings Bonds and Fixed Deposits, the GREAT SP Series 6 endowment plan can also be something you might want to consider.

This assumes you have a sum of money ready to be locked in for the next three years.

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 fall prey to purchasing something that we don’t need just because they’ve used buzz words 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 of release of these short-term endowment plans – not just Great Eastern – 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, Etiqa also just released its Tiq 3-Year Endowment Plan back in November 2021.

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 that you might have missed before making any decision!

 

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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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