Product Review: DIRECT - GREAT Life II 70 by Great Eastern Life

DIRECT - GREAT Life II 70 is a Direct Purchase Insurance (DPI) whole life plan offered by Great Eastern Life Assurance Company Limited. As a commission-free, direct-to-consumer product, it is designed for individuals seeking lifelong coverage without the involvement of a financial adviser. The plan provides protection against death, total and permanent disability (TPD), and terminal illness, while also offering participation in the performance of Great Eastern’s participating fund through non-guaranteed bonuses.

This product allows policyholders to choose between two premium terms: up to age 70 or up to age 85. It combines guaranteed benefits with projected returns based on the insurer’s historical fund performance. For context, Great Eastern holds an AA- credit rating from Standard & Poor’s. The plan does not offer cash coupons, sum assured multipliers, or allow payments via SRS or CPFIS. Additionally, there is no underwriting required for this specific direct channel listing, and it lacks a guaranteed insurable option on life events.

How it compares

The following comparison evaluates DIRECT - GREAT Life II 70 against three similar DPI whole life products available on CompareFIRST.sg. All figures are standardized per $100,000 sum assured for a 35-year-old male non-smoker to ensure an apples-to-apples assessment of cost and value.

Cost and Coverage Term: Great Eastern’s plan requires premiums to be paid only until age 70, which is a shorter commitment than Etiqa and Manulife (both requiring payments until age 85). In terms of upfront cost, Great Eastern ($1,651) is more affordable than FWD ($1,752) and Etiqa ($1,792), though it is pricier than Manulife’s $1,458. However, the shorter premium term in Great Eastern’s plan may result in lower total lifetime outlay compared to the 85-year premium terms of competitors.

Cash Value and Returns: At the 20-year mark, DIRECT - GREAT Life II 70 offers the highest surrender value among the peers listed ($28,200), significantly outperforming Manulife’s $12,600. It also provides a clear historical net investment return profile (2.39% over 5 years and 3.68% over 10 years), whereas FWD and Manulife do not provide these specific figures in the comparison data. Great Eastern also boasts one of the lowest Total Expense Ratios (TER) at 1.54%, compared to Etiqa’s 2.25% and Manulife’s 2.40%.

Pros

• Competitive Premiums: Lower annual premium than FWD and Etiqa for similar coverage structures.
• Strong Historical Returns: Demonstrates solid net investment returns (3.68% over 10 years) compared to peers with available data.
• High Early Cash Value: Offers the highest projected surrender value at year 20 ($28,200) among the compared products.
• Low Expense Ratio: A TER of 1.54% is efficient relative to the other listed options.
• Shorter Premium Term: Paying premiums only until age 70 reduces long-term financial commitment compared to plans requiring payment until age 85.

Cons

• Limited Payment Flexibility: Does not allow premium payments via SRS or CPFIS, limiting funding options for some Singaporeans.
• No Additional Riders/Features: Lacks cash coupons, sum assured multipliers, and guaranteed insurable options found in some other market offerings.
• Non-Guaranteed Bonuses: A portion of the returns relies on non-guaranteed bonuses dependent on fund performance, which carries risk.
• Standard Exclusions: Like most life plans, it excludes claims related to suicide within the first year, pre-existing conditions for TPD/Terminal Illness, and specific high-risk activities (e.g., aircraft accidents outside scheduled commercial flights).

Who it may suit

DIRECT - GREAT Life II 70 is well-suited for cost-conscious consumers who prefer a direct purchase route and want to minimize their premium payment period. It is ideal for individuals aged 35+ who value strong historical fund performance and lower expense ratios over flexible payment methods like CPFIS or SRS. Those looking for a straightforward whole life policy with robust cash value accumulation in the medium term (up to 20 years) may find this product attractive compared to competitors with higher premiums or lower surrender values. However, buyers seeking premium flexibility via CPF/SRS or additional riders should look elsewhere.

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.