facebookNTUC Income Gro Capital Ease: 3-Year Endowment Plan with 1.48% p.a. Guaranteed Returns
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NTUC Income Gro Capital Ease: 3-Year Endowment Plan with 1.48% p.a. Guaranteed Returns

profileXue Miao

Are you someone who’s looking for a place to hold your savings for the short term?

Source: Giphy

NTUC Income will be launching a new tranche of Gro Capital Ease with a return of 1.48% p.a.* over 3 years. 

Disclaimer: This article is only for information. It reflects Seedly’s opinion and not that of NTUC Income Insurance Co-operative Limited (“Income”). It is not financial advice and has no regards to any person’s investment and financial needs. Please seek advice from a qualified advisor for a suitable product. Past performance of a product is not indicative of its future performance. Income is not responsible to any person for this article including any unauthorised use of information. This is not an offer, recommendation or solicitation to buy or sell any products.


TL;DR: Is NTUC Income’s Gro Capital Ease Worth It?

This is a non-participating single-premium endowment insurance plan that provides guaranteed benefits only.

Here’s a breakdown of the Gro Capital Ease that will be launched on 5 October 2021.

 NTUC Income Gro Capital Ease
Coverage3 Years
Single PremiumOne lump sum

$5,000 via online, $20,000 via financial advisor representative (min)

Single premium limit of $200,000 per policyholder (max)
Payment OptionsPayment by cash, PayNow QR, eGIRO or Supplementary Retirement Scheme (SRS) funds
Total and Permanent Disability (TPD before age 70)
or Death Benefit
Within 1 year from cover start date: Net single premium^

After 1 year from cover start date: 105% of net single premium^
Guaranteed Yield to Maturity1.48% p.a.*
IssuanceGuaranteed acceptance regardless of health condition
Entry AgeInsured: 10 (min), 80 (max)

Policyholder: 10 (min), no max

Online application: 18 (min)
Policy ProtectionUp to specified limits by SDIC

* The guaranteed yield at maturity of 1.48% p.a. will be paid out at the end of the 3-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.

^ Net single premium means the single premium amount or the reduced single premium amount if a part of the policy has been cashed in earlier.

Gro Capital Ease with 1.48% p.a. Returns


What is an Endowment Plan?

An endowment plan is a life insurance policy that can be used to meet specific savings goals such as buying a property or paying for your child’s tertiary education.

For such plans, you usually either pay regularly or make a lump sum payment (aka “single premium”).

The Gro Capital Ease plan is a good example of a single-premium endowment plan.

All You Need to Know About the NTUC Income Gro Capital Ease Endowment Plan

1. Guaranteed Issuance

The issuance of the NTUC Income Gro Capital Ease Plan is guaranteed as no medical underwriting is required.

2. Guaranteed Capital

This plan provides a return of 1.48%* p.a. over 3 years.

Note that the capital is guaranteed IF you hold this plan to its maturity (3 years).

Upon maturity, you can receive 104.51%** of your principal sum. After three years, assuming you’ve paid a single premium of $10,000, you’ll receive a guaranteed maturity benefit of $10,450.60.

$450.60 return.

The guaranteed yield at maturity of 1.48% p.a. will be paid out at the end of the 3-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 104.51% (rounded to the nearest 2 decimal places) of the single premium is based on the guaranteed yield at maturity of 1.48% p.a.

3. Death Benefit & Total and Permanent Disability Benefit

This policy also covers total and permanent disability (TPD) before age 70 and death.

Time the Insured Event Happens Benefit
Within one year from the cover start date The net single premium
After one year from the cover start date 105% of the net single premium

4. Pay via eGIRO, PayNow or SRS Funds

If you’re interested in applying, the steps are really simple!

You can apply for this plan online, and make payment easily via PayNow, SRS, and eGIRO.

The minimum single premium for online purchases starts at $5,000.

If you prefer applying through a financial advisor representative, you can choose to use either cash or your Supplementary Retirement Scheme (SRS) funds to buy this plan.

Application through a financial advisor representative requires a minimum sum of $20,000.

However, if you’re thinking of doing a lump sum top-up of $20,000 for payment via SRS, you might want to note that the maximum yearly contribution limit for SRS is $15,300 for Singapore citizens and PRs.

As such, please ensure that there is sufficient balance in your SRS account before proceeding with this.

For this tranche, there will be a single premium limit of $200,000 for each policyholder.


How Gro Capital Ease Can Grow Your Savings

 

We probably do not all have $100,000 readily for us to place it all in.

However, the minimum single premium of $5,000 (via online purchase) makes it accessible for one to get started.

This can be helpful in gaining some returns in this low-interest-rate environment.

Gro Capital Ease with 1.48% p.a. Returns

Should I Buy NTUC Income Gro Capital Ease Plan?

If you have been on the lookout for somewhere to place your savings and do not need to use your savings within the next 3 years, this endowment plan can be added to your list for consideration.

If you might need that sum of money within the next three years, this would not be the most ideal option as you could incur a loss in the event you terminate your policy before the end of the 3-year period.

If you’re looking at it for insurance coverage, this might be a little too basic for that.

Do ensure that you’re adequately covered by having policies that meet your insurance needs.

Do note that this plan is available on a limited tranche and is on a first-come, first-served basis.

Despite that, please do sufficient homework before diving into it, and also read through the terms and conditions carefully.

Please don’t get it just because you’re feeling the FOMO (fear of missing out).


Disclaimer: This article is only for information. It reflects Seedly’s opinion and not that of NTUC Income Insurance Co-operative Limited (“Income”). It is not financial advice and has no regards to any person’s investment and financial needs. Please seek advice from a qualified advisor for a suitable product. Past performance of a product is not indicative of its future performance. Income is not responsible to any person for this article including any unauthorised use of information. This is not an offer, recommendation or solicitation to buy or sell any products.

Precise terms, conditions and exclusions of products are in the policy contracts.

Protected up to specified limits by SDIC (applicable for Income products that fall under the Policy Owners’ Protection Scheme).

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is correct as at 5 October 2021

 

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