Great Eastern Great SP Series: 2-Year Endowment Plan with 1.20% p.a. Guaranteed Returns
The interest rate for this month’s Singapore Savings Bond (SSB) promises an average of 1.45% per annum return over 10 years.
Riding on this opportunity, financial institutions out there to come out investment and saving products to cater to the need of Singaporeans. We are noticing a few strategies adopted by these companies where they give really reasonable returns with a shorter commitment term.
Following their previous launches, Great Eastern has made their move again.
If you can recall, Great Eastern launched Great SP Series 3 in March where it offers a guaranteed return of 1.55% annum. Back then the Great SP Series 3 has a tenure of 3 years.
Great Eastern GREAT SP Series 4A
Great Eastern just launched GREAT SP Series 4A.
This new online endowment plan offers a guaranteed return of 1.20% per annum.
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 are not looking to invest your savings, this might be a good option to grow your savings.
But let’s not digress, here’s all you need to know about Great Eastern GREAT SP Series 4A.
Disclaimer: This is not a sponsored post. All opinions are our own, we just like to help!
1. Minimum Premium Of $10,000
You can now invest in GREAT SP Series 4A with a minimum premium of $10,000, with no medical assessment required.
This is a single premium non-participating endowment plan that comes with three different tiers of benefit based on the total premium you put in.
We will illustrate the various tiers of benefits further down this article.
2. Short Term Investment With 2-Year Tenure
As a short-term investment, your money can be redirected again after your 2-year tenure.
3. Invest with Cash, Cheque, AXS, Bank Transfer or SRS Fund
Great SP allows you to invest through your Supplementary Retirement Scheme (SRS) Fund.
Ensure that your SRS contribution does not exceed your balance contribution limit available.
Applying online makes it rather simple since you can simply use eNETS for your payment.
Do ensure to update your eNETS limit before applying!
Otherwise, if you’re investing through an adviser.
4. Death and Total Permanent Disability (TPD) Benefits
In case of death and Total Permanent Disability (TPD), the plan pays out 105% of the single premium, or the surrender value of the policy, whichever is higher.
5. Complimentary Accidental Cover Booster
This plan has a newly added complimentary accidental cover booster, with the benefit equivalent to 5 times of the total single premium paid.
This means that if you’re paying a single premium of $10,000, you’ll receive an accidental cover booster of $50,000.
This benefit is up to $1 million per life insured.
To be covered, the applicant must be between age 17 to 70 (age next birthday).
Yearly Returns of GREAT SP Series 4A
To illustrate the returns which you will be getting, we will be using a single premium of $100,000 over 2 years as an example.
There are two payout options that you can choose from:
- The Paid-Out Option to receive your cash payout annually
- The Accumulation Option to reinvest the cash payout from your first year to generate more interest
Given a 1.20% per annum return, for a $100,000 premium.
- The Paid-Out Option will give you a return of $2,400.
Of which, $1,200 will be paid to you on your first year, another $1,200 at maturity.
- The Accumulation Option will give you a return of $2,430, based on an illustrated maturity yield of 1.21%.
But you will only receive it upon maturity.
If your single premium is at $10,000, the return will be $240 or $243, depending on the options.
Pros of Great Eastern GREAT SP Series 4A
- Guaranteed returns
- Capital Guaranteed upon 2-year maturity
- Hassle-free online application with no medical check-up required
Cons of Great Eastern GREAT SP Series 4A
Similar to other endowment plans, you are required to lock in your money for a period of time. In this case, 2 years.
Remember, you know your own situation the best, so plan ahead and make sure your cash flow works!
Should I Invest In GREAT SP Series 4A?
This is assuming you have a sum of money ready to be locked in for the next 2 years.
It is important to always do your own homework, even after reading our articles!
Disclaimer: This is not financial advice. Please seek advice from a qualified advisor to see if this product suits you. This is not an offer, recommendation, or solicitation to buy or sell any products.