If you want to make your money work hard without taking investment risks, you should consider short term endowment plans.
Short term endowment plans are insurance plans that provide a Guaranteed Return for a short policy term such as 2 years to 3 years. The insurance savings plan is protected under the Policy Owner Protection Scheme so there is an extra layer of safety.
NTUC Income has a very popular short-term savings plan of such called “Capital Plus“. They have rebranded it and now the plan is called “Gro Capital Ease“. It is a 3-year savings plan with a guaranteed 1.96% maturity yield.
What is Gro Capital Ease (CSN6)?
Gro Capital Ease is a 3-year non-participating, single premium endowment plan providing a guaranteed return of 1.96% per annum. This plan also provides protection against death, and total and permanent disability (TPD before the age of 70) during the policy term. If there is no claim from the policy, it will pay a guaranteed maturity benefit at the end of the policy term.
If you have disposable lump sum cash or SRS fund for saving over a 3-year tenure and looking for:
- Guaranteed returns
- Capital Guaranteed upon maturity
- Hassle-free application with no medical check-up required
This plan is for you. Below is the illustrated return based on every $1,000 premium
You will get back almost 106% of your premium after 3 years.
Is there any insurance coverage provided?
Yes, as illustrated in the table above.
What is the entry age?
Gro Capital Ease is available for insured from ages 10 to 80 (age last birthday). Third-party policies are allowed for cash policies. It means you can buy for your children.
Can this policy be bought using funds from CPFIS?
No, it can only be bought using cash or SRS funds.
Can the policyholder nominate a beneficiary?
If you buy the insurance plan under your own name, you can nominate any person as a beneficiary to receive the insurance policy proceeds.
Additional reading: What is insurance nomination.
Assignment of the policy is allowed provided it is purchased using cash.
How to buy NTUC Gro Capital Ease
In my earlier article about Aviva and Singlife’s merger, I talked about insurance companies are moving fast to embrace technology. NTUC, the once “old school” insurer is digitalizing their process fast.
Now you can buy NTUC Gro Capital Ease directly online at NTUC’s website via this link. (this is NOT an affiliate link).
Gro Capital Ease will be available from 28 September 2020. Please note that this tranche is available on a first-come-first-serve basis based on policy issuance. Please look out NTUC Gro Capital Ease website for more information.
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