GREAT SP Series 5A is a short term Endowment plan that provide guaranteed returns of 1.2% p.a. at the end of 2 years. The single premium insurance plan is offered via a partnership between OCBC bank and Great Eastern for a limited period only.
You can pay the one time premium for GREAT SP Series 5A using cash or your Supplementary Retirement Scheme (SRS) funds. Minimum starts at S$10,000.
The plan allows you to choose between choosing a one-time payout or yearly payouts.
What are Endowment Plans?
Endowment plans are life insurance saving plans offered by insurance companies.
The aim is to help policyholders save towards specific financial goals. Policy holders can contribute a regular amount for a designated period of time or pay a lump sum upfront at the start of the policy.
Upon maturity of the policy, you will be given a lump sum payout with the guaranteed return. It is best to study the plan carefully as certain endowment plans offers non-guaranteed returns.
Summary of GREAT SP Series 5A
Below is a summary of the Pros and Cons of GREAT SP Series 5A endowment plan.
Pros
- Short 2-year commitment.
- 100% capital guaranteed after 2 years.
- Interest rates is higher at 1.2% p.a.
- Pay using cash or Supplementary Retirement Scheme (SRS) funds.
- Comes with insurance coverage for death and total and permanent disability.
Cons
- Minimum starts at S$10,000. Personally, I felt that this is slightly high.
Disclaimer: This is Not a sponsored post and the opinions are solely based on My Sweet Retirement’s opinion.