GREATLife Endowment Insurance 3: A New Participating Endowment Plan

Overview

GREATLife Endowment Insurance 3 is a participating regular premium endowment plan from Great Eastern Life, designed for long-term wealth accumulation with insurance protection. The plan offers flexible premium payment options of 5, 10, or 15 years, plus a single premium option. It matures when the life assured reaches age 120 next birthday, providing a maturity benefit combining guaranteed amounts with non-guaranteed bonuses from the participating fund.

The plan provides death, total and permanent disability (TPD), and terminal illness coverage throughout the policy term. Death benefits are the higher of 105% of total standard premiums paid or the guaranteed surrender value plus bonuses. Notably, the plan requires no underwriting, making it accessible to a wider range of applicants. Great Eastern Life holds an AA- credit rating from Standard & Poor's.

How It Compares

Based on a common basis of age 35, male, non-smoker, with a $10,000 annual premium, the comparison reveals significant differences across similar products:

The GREATLife plan's guaranteed surrender value at year 20 ($55,027) is slightly lower than PRUWealth Plus but dramatically lower than AIA Smart Wealth Builder, which offers more than double the guaranteed value. However, the plan's 10-year net return of 3.68% outperforms PRUWealth Plus and Enrich goal, though it trails AIA's 4.90%.

At a $2,500 annual premium, the illustrated maturity value is $71,633 guaranteed (up to $333,238 projected), with a projected yield to maturity of 2.58%–3.69% p.a. The plan's expense ratio of 1.54% (5-year) is moderate—lower than PRUWealth Plus and Enrich goal but higher than AIA's 1.30%.

Pros

• No underwriting required — easier entry compared to plans requiring medical assessment
• Strong insurer backing — AA- credit rating from Standard & Poor's
• Flexible premium terms — 5, 10, or 15-year payment options plus single premium
• Secondary life assured option — allows policy continuity (up to 3 conversions)
• Comprehensive protection — covers death, TPD, and terminal illness
• Reasonable expense ratio — 1.54% (5-year) is competitive against some peers

Cons

• Lower guaranteed surrender values — significantly behind AIA Smart Wealth Builder at year 20
• No cash coupons — unlike some endowment plans that provide periodic payouts
• No SRS or CPFIS premium payment — limits tax-efficient funding options
• Long policy term — matures at age 120, requiring long-term commitment
• Early surrender penalties — surrender value may be zero or less than premiums paid if surrendered within the first 3 years
• Distribution cost of $2,690 — on a $2,500 annual premium, this represents a notable upfront charge

Who It May Suit

GREATLife Endowment Insurance 3 may suit individuals seeking a straightforward participating endowment plan with no medical underwriting and flexible premium terms. It could appeal to those prioritising insurer stability (AA- rated) and who are comfortable with a long-term horizon. However, savers focused on maximising guaranteed returns may find AIA Smart Wealth Builder more attractive, while those seeking lower expenses might prefer AIA's 1.30% TER. The plan's lack of SRS/CPFIS eligibility may be a drawback for those seeking tax-efficient 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.