The popular short term endowment plan is back. The latest tranche of NTUC Income Gro Capital Ease provides you a guaranteed return of 1.82% p.a. at the end of the policy term. This equates to a guaranteed maturity benefit of 105.56% of your single premium insurance savings plan at the end of policy which is 3 years.
With falling interest rates, short term endowment plans have become good alternative to traditional bank fixed deposits.
What are Endowment Plans?
Endowment plans such as Gro Capital Ease 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.
In this case, Gro Capital Ease Plan is a single premium, non-participating life insurance savings plan offered by NTUC Income Insurance Cooperative Limited that gives you a guaranteed maturity benefit of 105.56% at the end of the 3 years.
I have noticed that the minimum single premium for online purchase is now higher at $10,000 instead of the previous tranche whereby the minimum is only S$5,000. You may also choose to purchase through a financial advisor representative with a minimum single premium of $20,000. The maximum single premium limit for each policyholder is $200,000.
Why I Love Gro Capital Ease?
Based on what I know, NTUC Income Gro Capital Ease is the only endowment plan that lets you pay your premium using SRS (Supplementary Retirement Scheme) funds. I personally have bought the past 3 tranches of Gro Capital Ease using my SRS.
The interest rate for Supplementary Retirement Scheme is 0.05% per annum which is extremely low. Furthermore, you are unable to withdraw monies from your SRS until the retirement age. For my case is at 62 years old.
I guess you can do your maths here on why Gro Capital Ease is a great endowment plan to invest using monies in our SRS!