GREAT Prime Rewards 3 offers up to 20 years of payouts and a capital guarantee. Additionally, you can use your CPF SRS funds to pay for it. So, is this the ideal endowment plan for you?
GREAT Prime Rewards by Great Eastern is a single-premium, participating endowment policy that provides yearly payouts for up to 20 years. It also pays a lump-sum benefit upon completion of the policy term, death, terminal illness, or total and permanent disability.
You can accumulate your payouts any time to earn additional interest due to its highly flexible structure. You may also pay for it with your CPF Supplementary Retirement Scheme (CPF SRS), which also allows you to lower your tax obligations.
Is this the best endowment plan in Singapore? Let’s take a closer look to find out.
What can GREAT Prime Rewards do for you?
GREAT Prime Rewards Product Summary
- Type of plan: Endowment, participating
- Premiums: Single premium only
- Capital guarantee: Yes, from the end of the 5th policy year
- Payout duration: 10, 15, 17, or 20 years
- Accumulation period: Optional, 3 or 5 years
- Cash value: Yes
- Suitable for: Retirement income
- Death, Terminal Illness and Total and Permanent Disability: Covered
- Purchase options: Cash, CPF Supplementary Retirement Scheme
Pros and cons of GREAT Prime Rewards
|Guaranteed payouts for up to 20 years with an option to accumulate payouts for higher returns||High cost of entry|
|Can be purchased using CPF SRS||Returns not guaranteed and may change according to market conditions|
|Provides benefits for death, terminal illness, and total and permanent disability||Does not cover pre-existing conditions, critical illnesses, and hospitalisation|
Key features of GREAT Prime Rewards
#1: Provides up to 20 years of payouts
GREAT Prime Rewards is an endowment plan that offers guaranteed payouts each year. You can choose from four payout terms – 10, 15, 17, or 20 years.
These payouts will be provided annually, and may be used for a variety of your needs, such as to supplement your income or your retirement funds. You can also choose to accumulate your payout to earn extra interest. Payouts may be deferred in any year you choose.
#2: Offers a lump-sum benefit at the end of the policy
Apart from the payouts you may withdraw each year, you will also receive a lump-sum payout at the end of your policy term. This lump-sum includes guaranteed and non-guaranteed payouts, and possibly bonuses (if declared).
#3: Covers death, terminal illness (TI), and total and permanent disability (TPD)
Your GREAT Prime Rewards policy also provides coverage for death, TI, and TPD. Upon any of these occurrences, you may make a claim for a lump-sum payout. This lump-sum payout will be higher than either 110% of the single premium paid or the policy’s guaranteed surrender value.
Note that your payout will include any bonuses or deductions applicable, altering the final amount you or your beneficiaries will receive.
The downside is that pre-existing conditions and critical illnesses are not covered. Your claims will be voided if your insurer discovers a prior diagnosis. Thus, this policy does not cover medical and hospitalisation bills.
#4: Does not require long-term financial commitment
This endowment policy is available as a single-premium policy only, which means that you only need to pay your premiums once. As such, there is no need for a long-term financial commitment.
That said, this plan requires a high cost of entry, and you won’t be able to apply if you have insufficient cash on hand.
#5: Comes with a capital guarantee (after 5 years)
GREAT Prime Rewards guarantees your capital as it is shielded from any losses, which will be absorbed by your insurer instead. This means that at minimum, the money you paid for this policy will be returned to you. This plan is ideal for the risk-averse investors who are wary of losing part of their capital.
It’s important to note that this capital guarantee is only applicable from the end of the fifth policy year onwards, under the condition that no policy alterations were made.
Who should get GREAT Prime Rewards?
As an endowment plan, GREAT Prime Rewards is designed for people looking for additional income, either as a yearly payout, a lump-sum payout, or a combination of the two. This flexibility arises from the ability to defer your annual payouts in favour of earning additional interest.
You can also choose to have an optional accumulation period of three or five years, effectively increasing your policy’s value by delaying your annual payouts.
As such, GREAT Prime Rewards can contribute to various financial goals. Younger policyholders may use it to supplement their income, while older policyholders may use it to boost their retirement funds.
This policy is not suitable for those who can only afford to make small monthly payments as this single-premium plan requires you to have a large sum of money from the get-go.
Important exclusions to note
Before signing up for GREAT Prime Rewards, note the following exclusions.
- Pre-existing conditions
- Forms of TPD that are not presumptive TPD over age 65
- Suicide, self-inflicted injury or HIV
- Death or TPD within 12 months from start or reinstatement of policy
For the full list of exclusions, benefits and terms, please refer to the policy wording.
How to claim
Follow these three steps to make a claim under the GREAT Prime Rewards plan:
- Visit the Great Eastern Life claims page
- Click on the appropriate tile on the page (death claim or total and permanent disability claim)
- Follow the on-screen prompts to submit your claim
You may contact Great Eastern for further assistance at 1800 248 2888 or email@example.com.
Read these next:
Best Short & Long Term Endowment Plans in Singapore (2022)
7 Things to Consider When Buying Endowment Plans for Your Kids
5 Types of People Who Should Get an Endowment Plan
Fixed Deposits vs. Endowment Plans vs. Cash Management Accounts: Which Should You Choose?
By Alevin Chan
An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.