GREAT Prime Rewards III: A Participating Single Premium Endowment Plan

Overview

GREAT Prime Rewards III is a participating single premium endowment plan from Great Eastern Life, offering a combination of savings accumulation and insurance protection. The plan offers four variants with policy terms of 15 or 20 years, featuring different accumulation and payout periods: (5+10), (0+20), (3+17), and (5+15). During the payout period, policyholders receive guaranteed yearly survival benefits (ranging from 5% to 10% of the single premium depending on the variant chosen), plus potential non-guaranteed cash and terminal bonuses. The plan provides death, total and permanent disability (TPD), and terminal illness coverage, with death benefits set at the higher of 110% of single premium less survival benefits already paid, or the guaranteed surrender value plus terminal bonus. Premiums range from $10,000 to $50,000 annually (single premium), with an average of $27,544 across 1,124 quotes.

How it compares

At a common basis of age 35, male, non-smoker, with a $50,000 single premium, GREAT Prime Rewards III shows a 5-year par-fund net investment return of 3.68% and 10-year return of 3.96%, with a total expense ratio of 1.62% over 5 years. This compares with AIA Retirement Saver (IV) (SRS), which offers a guaranteed surrender value of $51,948 at year 20, net returns of 3.20% (5y) and 4.90% (10y), and a lower TER of 1.30%. RetireSavvy from Manulife shows a $50,000 guaranteed surrender value at year 20 with a higher TER of 2.40%. Singlife Flexi Retirement II shows net returns of 1.24% (5y) and 4.07% (10y) with the highest TER at 2.59%. Notably, GREAT Prime Rewards III has a shorter coverage term (11–15 years) compared to peers (16–40+ years), and its illustrated surrender value at year 10 for a $10,000 premium is $6,666 (projected up to $7,196), reflecting the impact of early surrender costs. The projected yield to maturity is 1.87%–2.99% p.a., with distribution costs of $523 per $10,000 premium.

Pros

• Guaranteed yearly payouts during the payout period provide predictable cash flow
• Multiple plan variants (15 or 20-year terms with different accumulation periods) offer flexibility
• No underwriting required and SRS premium payments allowed
• Insurance protection included — death, TPD, and terminal illness coverage
• Strong insurer backing — AA- rated by Standard & Poor's
• Competitive expense ratio (1.62% over 5 years) compared to some peers

Cons

• Projected yields are modest at 1.87%–2.99% p.a., below some alternatives
• Early surrender penalties are significant — surrender value at year 10 is only about 67% of premiums paid
• Non-guaranteed bonuses depend on participating fund performance, which showed negative returns (-0.15%) over the 3-year period
• Shorter coverage term (11–15 years) compared to peers offering 16–40+ year terms
• Not CPFIS eligible
• Distribution costs of $523 per $10,000 premium reduce initial investment

Who it may suit

GREAT Prime Rewards III may suit investors seeking a medium-term participating endowment with guaranteed income payouts and insurance protection, particularly those who value the flexibility of choosing between different accumulation and payout structures. The plan's shorter coverage term and focus on regular payouts may appeal to those planning for specific financial goals within 15–20 years, such as retirement income supplementation. However, those prioritising higher potential returns, longer coverage periods, or lower expense ratios may find alternatives like AIA Retirement Saver (IV) more suitable. Given the modest projected yields and significant early surrender costs, this plan is best suited to those who can commit to holding the policy for its full term.

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.