Gro Cash Flex Pro — A New Participating Endowment from Income Insurance

Overview

Gro Cash Flex Pro is a regular premium participating endowment plan from Income Insurance Limited (rated AA- by S&P) that blends savings accumulation with modest life protection. The policyholder chooses an annual premium (illustrated here from $1,000 to $10,000) and selects premium terms of 5 to 30 years, with policy terms running from 10 years up to age 120. The plan pays an annual cash benefit equal to 3% of a notional sum assured, starting two years after policy entry, and returns a maturity benefit if the insured survives the full term. It also provides death and terminal illness cover of 105% of net premiums paid, plus any terminal bonus. The plan is quoted by premium rather than sum assured, so payouts scale with the buyer's chosen outlay.

How It Compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, Gro Cash Flex Pro offers a guaranteed surrender value at year 20 of $33,000. This sits below GREAT Retire Income 20's $106,100 and Enrich goal's $47,083, but above RetireSavvy's $30,000. The plan's 5-year net fund return of 1.58% trails Great Eastern's 2.39% but beats Etiqa's 0.43%, while its 10-year return of 4.04% leads all three peers. Its total expense ratio of 0.94% (5-year) is the lowest among the group, versus 1.54% for Great Eastern, 1.93% for Etiqa, and 2.40% for Manulife. The illustrated maturity value for a $1,000 annual premium is $14,778 guaranteed (up to $15,412 projected), implying a projected yield to maturity of just 0.92%–1.65% p.a. — modest by endowment standards.

Pros

• Low expense ratio: At 0.94% (5-year TER), it is the most cost-efficient plan in this comparison.
• Flexible terms: Premium terms from 5 to 30 years and policy terms up to age 120 allow customisation.
• Early cash benefits: Annual payouts begin from year two, providing liquidity throughout the policy term.
• No underwriting required: Simplified application process.
• Guaranteed insurability option: Can buy additional death/TPD cover at key life events without health evidence.
• Secondary insured option: Policy continuity if the primary insured passes away.

Cons

• Low projected yield: At 0.92%–1.65% p.a., projected returns are modest relative to other savings vehicles.
• High distribution cost: $2,135 in charges per $1,000 annual premium is substantial.
• Weak early surrender value: Surrender in year 10 yields only $495 guaranteed on a $1,000 premium — a significant loss.
• Protection is limited: Death/TI cover is only 105% of premiums paid, not a meaningful sum assured.
• No SRS or CPFIS funding: Cannot use tax-advantaged retirement accounts.
• Non-guaranteed bonuses: Cash and terminal bonuses depend on the Life Participating Fund's performance.

Who It May Suit

Gro Cash Flex Pro may suit savers prioritising low fund charges, flexible premium terms, and regular cash payouts over maximising returns. It is less appropriate for those seeking strong investment growth, meaningful life protection, or who may need to access funds within the first decade — early surrender values are punitive. Given its modest projected yields, it may appeal more as a disciplined savings vehicle with a small insurance component than as a core wealth-building tool.

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.