If you want to make your money work hard without taking investment risks, you can 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’s Gro Capital Ease is one of them.
“Gro Capital Ease” used to be called “Capital Plus“. NTUC Income has rebranded it and now the plan is called “Gro Capital Ease”. It is a 3-year savings plan with a guaranteed maturity yield. The latest tranche (launch date 19 January 2021) is CSN7. The maturity yield is 1.58% p.a.
In my opinion, this is too low even with the current interest rate environment. You are probably better off with either
- A well managed short term duration bond portfolio, or
- A high-quality investment-grade bond like Aviva Singlife 3.375% coupon SGD bond or SIA 3% coupon USD Bond (if you are saving in USD).
Nevertheless, below are the details of this product.
What is Gro Capital Ease (CSN7)?
Gro Capital Ease (CSN7) is a 3-year non-participating, single premium endowment plan providing a guaranteed return of 1.58% 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 104.82% 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?
Gro Capital Ease is available for insured from ages 10 to 80 (age last birthday). The minimum single premium for online purchase starts at $5,000.
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 on a first-come-first-serve basis based on policy issuance.
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