Gro Retire Flex Pro II — Product Review

Overview

Gro Retire Flex Pro II is a participating endowment plan from Income Insurance Limited that combines savings accumulation with protection benefits. The policy is structured in two phases: an accumulation period (5–50 years for single premium, 10–50 years for regular premium) followed by a payout period (10, 15, 20 years, or until age 100) during which monthly cash benefits are paid. The plan includes death and terminal illness coverage, plus a compulsory non-participating rider providing accidental death, disability care, and retrenchment benefits for regular premium policies. Notably, this plan is quoted by premium — you choose your annual outlay (between $2,500 and $50,000) and the payout follows accordingly.

The plan offers projected yields of 2.90%–3.90% p.a. at maturity, with benefit illustration rates of 3.00% and 4.25% p.a. The Life Participating Fund has delivered net returns of 5.63% (3yr), 1.58% (5yr), and 4.04% (10yr), with a total expense ratio around 0.87%–0.94%. For a $2,500 annual premium, illustrated surrender values range from $6,488 at year 10 to $50,048 at year 30 (projected up to $54,503). Distribution costs for this premium level are $4,630.

How it compares

Compared at a common basis (age 35, male, non-smoker, $50,000 single premium), Gro Retire Flex Pro II shows the following against peers:

Gro Retire Flex Pro II has the lowest expense ratio among peers (0.94% vs 1.30%–2.59%), which is a significant advantage for long-term compounding. However, its 5-year net return is the second-lowest, and its 10-year return trails AIA's by nearly a full percentage point. The guaranteed surrender value at year 20 is notably lower than AIA's ($44,350 vs $51,948), suggesting a lower guaranteed component.

Pros

• Lowest expense ratio among comparable plans (0.94% vs peers at 1.30%–2.59%)
• Flexible accumulation period — can be shortened or extended by up to 5 years via the Flexi Retire Option
• Secondary insured option allows policy continuation for a spouse or child
• No underwriting required and SRS premium payments permitted
• Cash coupons provide regular income during payout period
• Accidental death, disability care, and retrenchment benefits included via compulsory rider
• Strong 10-year fund performance at 4.04% net return

Cons

• Lower 5-year fund return (1.58%) compared to GREAT (3.68%) and AIA (3.20%)
• Lower guaranteed surrender value at year 20 ($44,350 vs AIA's $51,948)
• Distribution costs of $4,630 on a $2,500 annual premium represent significant upfront charges
• Projected yields of 2.90%–3.90% are modest; early surrender may result in losses
• Compulsory rider cannot be removed for regular premium policies
• CPFIS payments not allowed, limiting funding flexibility

Who it may suit

Gro Retire Flex Pro II may suit investors prioritising low fund expenses and flexible retirement timing, particularly those who value the ability to adjust their accumulation period closer to retirement. The secondary insured option makes it attractive for legacy planning. However, those seeking higher guaranteed values or stronger short-term fund performance may prefer AIA Retirement Saver (IV), which offers better guaranteed surrender values and superior 10-year returns. The plan's modest projected yields suggest it is better suited to conservative savers with a long-term horizon who value the protection elements alongside savings.

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.