Help and Support

Insurance - GREATLife Endowment Insurance

Frequently asked questions
  • What type of financial product is GREATLife Endowment Insurance?

    It is an endowment insurance plan. This means that it focuses on growing your wealth while offering protection coverage at the same time.

  • What are the premium payment options?

    You can choose to pay your premiums monthly or annually, over 5 years, 10 years, or 15 years.

    For the 5-year premium payment term option, you can choose to pre-pay in advance in one lump sum, in exchange for a discount.

  • How will my money be invested and managed in a participating fund?

    Your money will be pooled together with those collected from other policyholders and invested into a participating fund. The participating fund will be managed by Lion Global Investors Limited and invested in a diversified range of assets.

  • What is my Insurance coverage?

    You will be getting insurance coverage for Death, Terminal Illness (TI) and Total and Permanent Disability (TPD).

    Here is a table reflecting the respective coverage and exclusions:

    Coverage Exclusions
    Death If the life insured passes away due to a pre-existing condition or suicide in the first year, your policy will be void and the premium you have paid will be refunded.
    Terminal Illness
    Diagnosis to be supported by a registered medical practitioner and insurer’s appointed medical practitioner.
    Pre-existing TI or if the life insured has HIV infection.
    Total and Permanent Disability
    Diagnosis to be supported by a registered medical practitioner and deemed to be total and irrecoverable.
    Pre-existing TPD or TPD resulting from self-inflicted injury or bodily injury sustained while in or on an aircraft (except as a fare-paying passenger or crew member on an aircraft licensed for passenger service and operated by a regular airline on a scheduled route or as a member of the armed forces travelling as a passenger in a military transport aircraft).
  • Can I purchase GREATLife Endowment Insurance if I have pre-existing health conditions?

    Yes. However, if the life insured passes away due to a pre-existing condition within 12 months from the start date of the policy or suffers from pre-existing TI, the policy will end and all the premiums paid (less any debt and bonus paid under the policy) will be refunded. Payment of the TPD benefit will not be made if the life insured has pre-existing TPD.

  • Can I make a partial withdrawal if I need the cash during the policy term?

    Yes, provided there is value in your policy. Note that if you make a withdrawal, it will reduce the value of your policy.

  • Are my benefits/returns guaranteed?

    The illustrated benefits are made up of guaranteed and non-guaranteed benefits.

    1. Guaranteed benefits
      It will be capital guaranteed from the end of the 15th policy year.
    2. Non-guaranteed benefits

    Every year, the bonus returns from the participating fund will be declared. Only bonuses that have been declared are guaranteed. Non-guaranteed benefits are in the form of future bonuses and depend on the current performance, the future outlook and the financial soundness of the participating fund.

    The non-guaranteed benefits (based on bonuses to be declared) depend on:

    • Actual investment returns of the participating fund
    • Actual expenses incurred or allocated to the participating fund
    • The number of claims and surrendered policies in the participating fund

    The two Illustrated Investment Rates of Return of 4.75% per year and 3.25% per year used to illustrate the benefits are used purely as examples. They do not represent the upper and lower limits of the investment performance of the participating fund.

    The bonuses may be smoothed to provide a stable medium to long-term return. Bonuses made during the good years may be used to support the bonuses during down times.

    Table reflecting the past investment rate of return (IRR) of the participating fund:

    Investment returns of the participating fund

    • The past investment rates of return (after deducting investment expenses only) of the participating fund are shown in the following table.
      2017 2018 2019 Average of last 3 years Average of last 5 years Average of last 10 years
    Investment returns 9.63% -1.24% 11.02% 6.33% 4.99% 5.33%

    Please note that past performance may not be indicative of future performance.

    Table reflecting the expenses incurred by the participating fund:

    Expenses incurred by the participating fund

    • Expenses include costs such as investment, management, distribution, tax and other expenses.
    • The past Total Expense Ratio (proportion of total expenses incurred to the total assets of the participating fund) are shown in the following table.
      2017 2018 2019 Average of last 3 years Average of last 5 years Average of last 10 years
    Total expense ratio 1.82% 1.59% 1.71% 1.74% 1.74% 1.65%

    Please note that past expense ratios may not be indicative of actual expenses that may be incurred in the future.

  • What are the fees and charges that I need to pay?

    All the fees and charges are already included in the amount that you pay. These include (but are not limited to):

    • Distribution costs which includes what you pay for advice and for other related expenses
    • Fee to the fund managers
    • Costs of insurance
    • Management expenses to maintain the policy
  • What happens if I need to terminate the plan early?

    Signing up for a life insurance policy is a long-term commitment. There are some things you need to take note if you end the plan early:

    • This plan will return the total amount that you put in only after 15 policy years. If you end the policy in the first 15 policy years, you will get zero or less than what you put in
    • Once you end your policy, you will not be protected in terms of insurance coverage

    The following table shows the guaranteed surrender value as a proportion of total premiums paid to date for some key periods. This will allow you to have a rough estimate of how much you may get back if you choose to terminate the policy early.

    Period Pay premiums over
    5 years 10 years 15 years
    First 14 days Free-look period
    First 2 policy years No surrender value
    End of 5th policy year 32% 29% 28%
    End of 10th policy year 61% 59% 56%
    End of 15th policy year 110% 106% 104%

    Please refer to the surrender value section in the policy illustration for more information.

  • What are riders and what are the optional riders available?

    You may choose to add riders when you want to add benefits or change the terms of your base insurance plan. Riders will provide you with additional coverage at an additional cost. Riders will usually be attached to a base plan. In this case, the base plan will be GREATLife Endowment Insurance.

    The available riders for add-on to GREATLife Endowment Insurance will be:

    1. Payer Benefit Plus (CI) Rider
    2. Premium Waiver Plus (CI) Rider
  • What is the Secondary Life Assured (SLA) option?

    You can appoint another person to be the Secondary Life Assured (SLA). This ensures that in the event the original life insured passes on, the SLA appointed by you can take on and continue the existing policy. The policy term will remain unchanged (i.e. policy will mature on the policy anniversary when the original life insured would have been age 120 next birthday).

    The SLA can be yourself, your spouse or child (biological or legally adopted) who is age 18 next birthday and below.

  • Glossary

    First party policy

    This means that the policyholder and life insured will be the same person.

    Freelook period

    It is a 14-day grace period to allow you to think about and review your insurance purchase. This will start from the day you receive your policy documents.

    During this time, if you choose to cancel the policy, the premiums that you have paid will be refunded back to you.

    After the freelook period, it is taken that you are committed to the policy. If you cancel the policy, there will not be any refund of the premiums paid.

    Life insured

    It is the person whose life is covered for in this policy.

    Participating fund

    The money that you pay for the insurance plan will be invested in this fund, together with the premiums pooled from other policyholders.

    The bonuses may be smoothed to provide a stable medium- to long-term return. Bonuses made during the good years may be used to support the bonuses during down times.

    Policyholder

    It is the person who owns the insurance policy. This person has the right to make decisions regarding the policy.

    Policy term

    It refers to how long the policy will last. For GREATLife Endowment Insurance, it will last from the start of the policy till the policy anniversary on which the life insured would be age 120 next birthday.

    The length of the policy term depends on your age of entry.

    Example: If you bought the plan at 40 years old (Age Next Birthday), the policy term will be 120 – 40 = 80 years.

    During the policy term, you will be covered for death, TPD and TI.

    Regular premium

    It means that you will spread out your payment and pay your premiums regularly over a period of time.

    You will not pay your premiums in one lump sum.

    Surrender value

    It is the amount that you will get when you surrender the policy.

    Third party policy

    This means that the policyholder can be a different person from the life insured. However, this is only possible under specific context, where there is insurable interest. Usually it will be based on a husband-wife relationship or parent-child relationship. For a parent-child relationship, the parent (policyholder) will be able to purchase the plan for the child (life insured) who is age 18 next birthday or below.

This FAQ serves to explain the policy in brief only. The precise terms and conditions of this insurance plan are shown in the policy contract. Please refer to the Policy Illustration, Product Summary, and the policy contract for more information.