Limited Offer: 1.58% p.a.¹ Guaranteed with NTUC Income’s Gro Capital Ease; Use of SRS Allowed

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After a few tranches that were sold out in days, Gro Capital Ease is back. A non-participating, 3-year endowment plan, Gro Capital Ease offers a guaranteed yield at maturity of 1.58% p.a.1 that will be paid out at the end of the 3-year policy term if the insured survives at the end of the policy term, with no policy alterations or claims made during the entire policy term. This provides a guaranteed maturity benefit of 104.82%2 (rounded to the nearest 2 decimal places) of the single premium, based on the guaranteed yield at maturity of 1.58% p.a.1

Given that the returns and capital are guaranteed as long as the plan is kept to maturity, it is a popular option for those looking to set aside some funds over the next few years. The use of Supplementary Retirement Scheme (SRS) funds is also allowed for this plan. Apply online easily with a single premium from as low as $5,000. Note that this is a limited tranche so it is first come, first served.

Details and Features

ProviderIncome
Plan NameGro Capital Ease
Premium TypeSingle Premium
Minimum Single  Premium$5,000  (if applied online)
Guaranteed ReturnsYield at maturity of 1.58% p.a.1 Maturity benefit of 104.82%2 of the single premium
Tenure3 years
Other Features– Death & Total and Permanent Disability (TPD before age 70) benefit
– No medical underwriting required
– Can be purchased online via eNets, eGiro, PayNow QR or Supplementary Retirement Scheme (SRS) funds
– Can also be purchased with a minimum single premium of $20,000 through a financial advisor representative using cash or Supplementary Retirement Scheme (SRS) funds

If a person puts in $100,000, he/she will receive $104,815 at the end of the 3 years, guaranteed, provided that they survive at the end of the policy term, with no policy alterations or claims made during the entire policy term. In the unfortunate event that person dies after one year from the cover start date, the Death Benefit of 105% of the net single premium means that he/she will receive $105,000.

Use of SRS

As one’s income grows, tax planning becomes more relevant, and SRS is a great place for one to set aside savings for the longer term and reduce tax obligations. Unfortunately, SRS accounts give practically little to no returns at only 0.05% p.a. interest.

It may be of interest to those with SRS savings to consider Gro Capital Ease as it offers a guaranteed yield at maturity of 1.58% p.a.1 

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No medical underwriting is required, and online application is fuss-free. As mentioned, such products tend to get sold out quickly, so apply as soon as you have made up your mind.

Conclusion

During such volatile economic times, Gro Capital Ease is an option you may consider for guaranteed returns, as long as you are able to keep this plan to maturity.

The good:

  • Yield upon maturity of 1.58% p.a.1 is guaranteed at the end of the 3-year policy term
  • Death and TPD (TPD before age 70) benefit
  • Guaranteed acceptance (no medical underwriting is required)
  • Use of SRS funds

The bad:

  • If you terminate prematurely you get back less than capital

  1. The guaranteed yield at maturity of 1.58% p.a. will be paid out at the end of the 3-year policy term, provided that the insured survives at the end of the policy term, with no policy alterations or claims made during the entire policy term.
  2. The guaranteed maturity benefit of 104.82% (rounded to the nearest 2 decimal places) of the single premium is based on the guaranteed yield at maturity of 1.58% p.a.

This article is only for information. It reflects my opinion and not that of NTUC Income Insurance Co-operative Limited (“Income”). It is not financial advice and has no regards to any person’s investment and financial needs. Please seek advice from a qualified advisor for a suitable product. Past performance of a product is not indicative of its future performance. Income is not responsible to any person for this article including any unauthorised use of information. This is not an offer, recommendation or solicitation to buy or sell any products.

Precise terms, conditions and exclusions of products are in the policy contracts.

Protected up to specified limits by SDIC (applicable for Income products that fall under the Policy Owners’ Protection Scheme).

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Information is correct as at 19 January 2021.

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