MaxEndowment Insurance Special II — Product Review

Overview

MaxEndowment Insurance Special II is a participating regular premium endowment plan from Great Eastern Life, designed with a policy term of 10 years. It combines insurance protection against death, total and permanent disability (TPD), and terminal illness with a savings component that pays yearly survival benefits starting from the 5th policy anniversary. The plan is quoted by premium — you choose your annual outlay (ranging from $5,000 to $10,000 in the quotes reviewed) and the payouts follow accordingly.

The plan offers guaranteed maturity benefits plus non-guaranteed bonuses from Great Eastern's participating fund. Benefit illustrations are shown at 3.00% and 4.25% p.a. investment return scenarios. For a $5,000 annual premium, the illustrated maturity value ranges from $22,122 (guaranteed) up to $29,993 (projected), implying a projected yield to maturity of 1.03%–2.30% p.a. The insurer holds an AA- credit rating from Standard & Poor's.

How it compares

At a common basis of $10,000 annual premium for a 35-year-old male non-smoker, MaxEndowment Insurance Special II differs notably from its peers. Its participating fund has delivered net returns of 2.39% (5-year) and 3.68% (10-year), with a total expense ratio of 1.54% over 5 years.

Against TM KidStart (II) (Tokio Marine, age 1 basis), the comparison is imperfect due to different ages, but KidStart shows a lower TER (0.58% vs 1.54%) and stronger 10-year net returns (4.16% vs 3.68%). Manulife Spring (II) carries a higher TER of 2.40%, while China Life Prosperous Retirement has the highest TER at 3.31% but offers a 5-year net return of 2.36%, similar to Great Eastern's 2.39%.

Notably, MaxEndowment's 10-year term is shorter than most peers, and its projected yield of 1.03%–2.30% p.a. reflects a conservative savings outcome relative to the protection element embedded in the plan.

Pros

• Guaranteed maturity benefit — the $22,122 guaranteed amount at $5,000 annual premium provides certainty
• Survival benefits from year 5 — can offset premiums, meaning you may only pay for the first 5 years
• Insurance protection included — death, TPD, and terminal illness cover with 105% of premiums paid (less survival benefits) plus bonuses
• Guaranteed premium rates — premiums will not change over the policy term
• Strong insurer rating — AA- from Standard & Poor's

Cons

• Modest projected returns — 1.03%–2.30% p.a. yield to maturity is conservative
• Higher expense ratio — 1.54% TER (5-year) exceeds TM KidStart's 0.58%
• No SRS or CPFIS payment — limited premium payment flexibility
• Underwriting required — not a no-underwriting product
• Early surrender costs — surrender before 3 years yields nothing; early exit may return less than premiums paid
• Distribution cost — $1,559 on a $5,000 annual premium is significant

Who it may suit

This plan may suit investors seeking a short-to-medium-term endowment (10 years) with guaranteed elements and some insurance protection, who prioritise capital certainty over high returns. It may be less suitable for those seeking higher growth potential, lower fees, or who want to fund premiums via SRS or CPFIS. Given the modest projected yields, consider whether the insurance component justifies the opportunity cost versus a pure savings approach.

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.