Great Eastern GREAT Term 2 with TPD Benefit: A Cost-Effective Pure Protection Option

Overview GREAT Term 2 with TPD Benefit is a non-participating, regular premium level term insurance plan offered by Great Eastern Life Assurance Company Limited. Designed strictly for pure protection, this policy provides coverage against death and terminal illness without any cash value, surrender value, bonuses, or maturity payouts. The plan offers five policy term options, allowing coverage to extend up to age 65, 70, 75, 80, or 85 next birthday. A key feature is its convertibility privilege, which allows the policyholder to convert the term plan into a whole life, endowment, index universal life, or investment-linked policy without further medical underwriting, provided the conversion occurs before the life assured turns 70. The product is backed by Great Eastern’s strong AA- credit rating from Standard & Poor’s and is protected under the Policy Owners’ Protection Scheme administered by SDIC.

How it compares To understand where GREAT Term 2 fits in the market, we compare its cost efficiency against similar level term plans. The comparison below uses a consistent basis: a 35-year-old male non-smoker with a $100,000 sum assured.

As indicated in the data, GREAT Term 2 is significantly more affordable than its peers on a like-for-like basis. At $208 per year for every $100,000 of coverage, it costs less than half of the next cheapest option listed, Singlife Elite Term II ($535), and roughly one-third of TM Term Assure (II) ($620). While the other products offer slightly longer maximum coverage terms (up to 40 years compared to Great Eastern’s 30-year band in this specific comparison), GREAT Term 2 provides a highly competitive entry point for budget-conscious consumers seeking basic death and terminal illness protection. Note that premiums for GREAT Term 2 range broadly from $193 to $12,137 annually depending on individual criteria, with an average of $1,737 across 425 quotes.

Pros

• High Cost Efficiency: The premium of $208 per year per $100k SA is substantially lower than comparable term plans from Tokio Marine, HSBC Life, and Singlife.
• Conversion Privilege: Allows conversion to other major policy types (whole life, endowment, etc.) without new medical underwriting before age 70, offering future flexibility.
• TPD Benefit Included: The plan includes a Total Permanent Disability (TPD) rider benefit, enhancing its core protection scope beyond just death.
• Financial Strength: Backed by Great Eastern’s AA- credit rating and SDIC Policy Owners’ Protection Scheme coverage.

Cons

• No Renewability: The policy does not have a renewability feature; coverage ends at the end of the chosen term unless converted or renewed under specific conditions not detailed as standard renewal.
• Strict Underwriting: Requires medical underwriting for new applications; there is no option for "no underwriting" plans.
• Limited Payment Flexibility: Does not allow premium payments via SRS (Supplementary Retirement Scheme) or CPFIS (CPF Investment Scheme).
• No Savings Component: As a pure term plan, it has no cash value or investment returns; premiums are purely for risk coverage.

Who it may suit GREAT Term 2 with TPD Benefit is best suited for individuals seeking maximum coverage at the lowest possible premium cost. It is ideal for young professionals or breadwinners who need high leverage protection (high sum assured relative to premium) for a specific period, such as until children are financially independent or a mortgage is paid off. The convertibility feature makes it suitable for those who anticipate needing permanent insurance in the future but wish to lock in insurability now without current medical barriers. It may be less suitable for those requiring long-term coverage beyond 30 years without conversion, or those wishing to use CPF/SRS funds for premium payments.

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.