GREAT Wealth Multiplier 3 — how it compares

GREAT Wealth Multiplier 3: A New Participating Endowment from Great Eastern

GREAT Wealth Multiplier 3 is a participating regular premium endowment plan from Great Eastern Life, designed for long-term wealth accumulation with a savings-and-protection balance. It offers limited premium payment terms of 5, 10, or 15 years, or a single premium option, and matures when the life assured reaches age 120 next birthday. The plan provides death, total and permanent disability (TPD), and terminal illness coverage, paying the higher of 105% of premiums paid or the guaranteed surrender value plus bonuses. As a participating plan, it distributes non-guaranteed bonuses based on the performance of Great Eastern's participating fund, which has shown net investment returns of 0.71% (3yr), 2.39% (5yr), and 3.68% (10yr), with total expense ratios of 1.49%–1.61% over the same periods. The insurer holds an AA- credit rating from Standard & Poor's.

How it compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, GREAT Wealth Multiplier 3 offers a guaranteed surrender value at year 20 of $55,027. This is slightly below PRUWealth Plus's $56,179 but significantly lower than AIA Smart Wealth Builder (II)'s $139,300. However, the AIA plan has a 20-pay structure, which may explain its higher guaranteed value. The new plan's projected net returns are 2.39% (5yr) and 3.68% (10yr), which are lower than AIA's 3.10% and 4.90% but higher than Etiqa's 0.43% and 2.72%. Its total expense ratio of 1.54% (5yr) is more competitive than PRUWealth Plus's 2.27% and Etiqa's 1.93%, but slightly higher than AIA's 1.30%. At a $2,500 annual premium, the plan illustrates a guaranteed maturity value of $71,633, with projected values up to $333,238, and a projected yield to maturity of 2.58%–3.69% p.a.

Pros

• Strong insurer backing: Great Eastern Life holds an AA- credit rating and is part of the OCBC Group.
• Flexible premium terms: Choose from 5, 10, or 15-year payment periods, or a single premium.
• Secondary life assured option: Allows policy continuity upon the death of the life assured, with up to 3 conversions.
• No underwriting required: Simplified application process.
• Competitive expense ratio: Lower than some peers, which may support better long-term returns.

Cons

• Low early surrender values: Surrendering before year 3 yields no value, and early termination may result in losses.
• Modest projected returns: The 2.58%–3.69% projected yield is moderate compared to some alternatives.
• No cash coupons: The plan does not provide periodic payouts, which may not suit income-seeking investors.
• Not SRS or CPFIS eligible: Premiums cannot be paid via Supplementary Retirement Scheme or CPF Investment Scheme funds.
• Distribution costs: At $3,884 for a $2,500 annual premium, upfront charges are notable.

Who it may suit

GREAT Wealth Multiplier 3 may suit individuals seeking a long-term, participating endowment with a balanced savings-and-protection focus, backed by a financially strong insurer. It is best for those who can commit to a long horizon and do not need early liquidity or periodic income. The secondary life assured feature may appeal to families wanting policy continuity. However, those seeking higher guaranteed values or SRS/CPFIS eligibility may find other options more suitable.

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.