Complete Life Secure (400%) by Income Insurance Limited: Overview and Comparison

Complete Life Secure (400%) is a regular premium whole-life participating plan offered by Income Insurance Limited, an insurer rated AA- by S&P. As a lifelong cover with cash value, it requires premium payments for a limited term while providing protection against total and permanent disability (TPD), terminal illness, and death for the insured’s entire life. A key feature of this product is its multiplier cover, which can range from 100% to 500% of the sum assured before the insured reaches a specified age (65, 75, or 80). The policy value increases through regular bonuses linked to the Life Participating Fund’s performance. Notably, it includes a Flexi Cash Access option that allows policyholders to convert a portion of the sum assured into annual cash payouts starting from age 50 or when premiums are fully paid. It also offers a Guaranteed Insurability Option for major life events without medical underwriting.

How it compares

When evaluated on a like-for-like basis for a 35-year-old male non-smoker with a $100,000 sum assured, Complete Life Secure (400%) presents distinct cost and return profiles compared to its peers.

Premium Costs: Income Insurance’s product is among the most affordable in this comparison. At $2,201 per year, it is significantly cheaper than FWD Life Protection ($8,550) and HSBC Life - Life Treasure III ($3,140). It is also slightly more economical than PRUActive Life V ($2,999). The premium term for Complete Life Secure ranges from 26 to 30 years, which aligns with the longer payment terms of HSBC and PRUActive Life V, whereas FWD offers a much shorter 2-to-5-year premium term.

Surrender Value at Year 20: The cash value accumulation shows varied performance. Complete Life Secure yields $15,200 in surrender value at year 20 per $100k sum assured. This is lower than all three comparators: FWD ($23,080), HSBC ($27,200), and PRUActive Life V ($21,984). However, it is important to note that the lower premium cost of Complete Life Secure contributes to this difference; comparing absolute surrender values without adjusting for total premiums paid can be misleading.

Returns and Expenses: For the 5-year and 10-year periods, Complete Life Secure reports net investment returns of 1.58% and 4.04% respectively, with a Total Expense Ratio (TER) of 0.94% at year 5. In comparison, PRUActive Life V shows higher early returns (2.23% at 5 years) but carries a significantly higher TER of 2.27%. HSBC Life reports a negative return at year 5 (-0.48%) before recovering to 3.49% at year 10. FWD does not provide specific net return or TER data in this comparison set.

Pros

• Competitive Pricing: Offers one of the lowest annual premiums ($2,201 per $100k SA) among the compared whole-life plans for a 35-year-old male.
• High Multiplier Cover: Provides up to 400% (or 500%) sum assured as death benefit before the age of 65/75/80, offering substantial leverage during early-to-mid career years.
• Flexible Cash Access: The Flexi Cash Access option allows for annual payouts starting from age 50, aiding in retirement planning without fully surrendering the policy.
• Guaranteed Insurability: Allows coverage expansion upon life events (marriage, birth, etc.) without new medical underwriting, up to two times.
• Low Expense Ratio: The TER of 0.94% at year 5 is lower than peers like PRUActive Life V (2.27%) and HSBC Life (1.72%).

Cons

• Lower Early Surrender Value: The projected surrender value at year 20 ($15,200) is the lowest among the compared products on a per $100k SA basis.
• Modest Short-Term Returns: The 5-year net return of 1.58% is lower than PRUActive Life V’s 2.23%.
• No SRS/CPFIS Payment: Unlike some competitors, this plan does not allow premium payments using Supplementary Retirement Scheme (SRS) or CPF Investment Scheme (CPFIS) funds.
• Retrenchment Benefit Limitations: The retrenchment benefit only waives premiums for up to six months after the next due date, requiring immediate resumption of payments upon finding new employment.

Who it may suit

Complete Life Secure (400%) may suit individuals seeking a cost-effective lifelong protection plan with a focus on high initial coverage leverage. It is particularly relevant for those who prioritize lower annual premiums and are comfortable with a longer premium-paying term (26-30 years). The product is suitable for policyholders who value the flexibility of converting part of their sum assured into retirement income via Flexi Cash Access and wish to secure future insurability without medical hurdles. However, it may be less ideal for those seeking high early cash value growth or those requiring SRS/CPFIS premium payment options.

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.