GREAT Life Multiplier — how it compares

GREAT Life Multiplier: A New Participating Whole Life Plan from Great Eastern

GREAT Life Multiplier is a limited-premium, participating whole life insurance plan from Great Eastern Life that provides lifelong protection against death, Total and Permanent Disability (TPD), and Terminal Illness (TI). A key feature is its "multiplier benefit," which can increase the basic sum assured by 3, 5, 8, or 10 times, applicable until a chosen multiplier expiry age (65, 75, or 85 next birthday). Policyholders can choose premium payment terms of 15, 20, 25, or 30 years. The plan offers both guaranteed benefits and non-guaranteed bonuses (reversionary and terminal), with illustrated investment rates of return of 3.00% and 4.25% per annum used for projections.

How it compares

Compared to similar whole life plans on CompareFIRST.sg for a 35-year-old male non-smoker (per $100,000 sum assured), GREAT Life Multiplier has an annual premium of $2,350 with a 21-25 year premium term. This is higher than Income Insurance's Complete Life Secure (100%) at $1,612 (26-30 year term) but lower than Singlife Whole Life Choice at $2,618 (26-30 year term) and significantly lower than China Taiping's i-Secure Legacy (II) at $4,687 (11-15 year term).

In terms of projected surrender value at year 20, GREAT Life Multiplier shows $19,400, which is higher than Complete Life Secure ($15,200) but lower than Singlife Whole Life Choice ($26,200) and i-Secure Legacy (II) ($27,700). The plan's participating fund has a 5-year net investment return of 2.39% and a 10-year return of 3.68%, with a 5-year total expense ratio (TER) of 1.54%. This net return is stronger than i-Secure Legacy (II) (5-year: -0.03%) and Singlife Whole Life Choice (5-year: 1.24%), but slightly below Complete Life Secure's 5-year return of 1.58% and 10-year return of 4.04%. The TER is lower than Singlife (2.59%) and i-Secure Legacy (II) (5.12%), but higher than Complete Life Secure (0.94%).

Pros

• Multiplier Benefit: Offers enhanced coverage (up to 10x basic sum assured) during key working years until a chosen expiry age.
• Competitive Fund Performance: The participating fund's 5-year net return (2.39%) is the highest among the compared products, and its 10-year return (3.68%) is solid.
• Lower Expense Ratio: The 5-year TER (1.54%) is lower than two of the three comparable products.
• Guaranteed Premiums: Premium rates are guaranteed for the policy term.

Cons

• Lower Projected Surrender Value: At year 20, the projected surrender value ($19,400 per $100k SA) is lower than Singlife Whole Life Choice and i-Secure Legacy (II).
• No Cash Coupons: The plan does not pay regular cash coupons, unlike some participating plans.
• Limited Payment Options: SRS and CPFIS premium payments are not allowed.
• Early Surrender Risk: Surrendering in the early years may result in very low or zero cash value, as with most whole life plans.

Who it may suit

GREAT Life Multiplier may suit individuals seeking a whole life plan with a strong multiplier benefit for higher protection during their peak earning years. It could appeal to those who value a participating fund with a relatively strong recent net investment return and moderate expense ratios, and who are comfortable with a limited premium payment term. However, those prioritising higher projected surrender values or regular cash payouts may find other options more suitable.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.