Feature Articles: Insurance - OCBC Wealth Management

A unique insurance plan that offers the added benefits of savings and liquidity

Are you looking to beef up your insurance protection while maintaining a savings plan? If so, MaxSave Plus may suit your needs.

It provides a sum assured of approximately 10 times the annual premium for 12 years and pays out a progressively increasing survival benefit, starting from the end of the second year, up till maturity.

Paid-out option – How it works

At the end of the second year, a survival benefit of 1.5% of the sum assured will be paid out to you. This amount increases to 2.0% of sum assured in the following year, and so on, increasing at 0.5% per annum. In other words, you will be collecting a payout of 5% of the sum assured at the end of the 9th year and 6% of the sum assured at the end of the 11th year.

Should you decide that the survival benefit is not of immediate use, you have the added option of leaving it to accrue interest at a rate of 3% p.a. (this rate is not guaranteed and is subject to change without notice).

This effectively gives you the flexibility to choose between liquidity and a higher return from the second year onwards.

A simple example

A man aged 35 chooses MaxSave Plus and pays an annual premium of $3,228. The tenor is 12 years and he is covered throughout this duration for a sum assured of $30,000.

End of Year	1	2	3	4	5	6
Survival Benefit	0.0%	1.5%	2.0%	2.5%	3.0%	3.5%
Pay-out	-	$450	$600	$750	$900	$1050
End of Year	7	8	9	10	11	12
Survival Benefit	4.0%	4.5%	5.0%	5.5%	6.0%	Maturity
Pay-out	$1200	$1350	$1500	$1650	$1800	$34030**

**As the bonus rates used for the benefits illustrated above are not guaranteed, the actual benefits payable may vary according to the future experience of the fund.

Choice of savings or liquidity

Perhaps the most attractive aspect of this instrument would be the flexibility that it offers for almost the entire duration of the tenor, by allowing you to balance the need for cash versus the returns you'd enjoy from holding out.

Payments of survival benefits can be left to accrue interest or taken out at any juncture. Even if a situation were to arise whereby you need extra cash, previous survival benefit pay-outs can be withdrawn at no charge.

Bottom line

This product provides you with life insurance with a sum assured of approximately 10 times the annual premium, while paying out attractive survival benefits in increasing amounts. With the added option of leaving the survival benefits to accrue interest, MaxSave Plus is a good way to bolster your personal insurance as well as save for your future.

This publication is for your information only.

This publication is not a contract of insurance. It does not constitute an offer to buy or sell an insurance product or service. It is also not intended to provide any insurance or financial advice. A person interested in this product should read the Product Summary and Benefit Illustration (obtainable from OCBC Bank) before deciding whether to buy this product.

Buying an insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value may be less than the total premium paid. Specific terms and conditions are applicable to the insurance policy and the details are set out in the policy documents. You may wish to seek advice from a financial adviser before making a commitment to purchase the product. In the event that you choose not to seek advice from a financial adviser, you should consider whether the product in question is suitable for you.

MaxSave Plus is underwritten by The Overseas Assurance Corporation Limited (OAC Insurance) and is not a bank deposit or obligations of, or guaranteed by OCBC Bank or any of its affiliates or subsidiaries. OAC Insurance is a wholly-owned subsidiary of Great Eastern Holdings Limited. Great Eastern Holdings Limited is a subsidiary of OCBC Bank. OAC Insurance is a composite insurer with solid financial strength and over 80 years of experience