PrimeGold Bonus III — A Participating Endowment with Income Focus

Overview

PrimeGold Bonus III is a participating single-premium endowment plan from Great Eastern Life, offering a combination of insurance protection and medium- to long-term savings growth. The plan is available with policy terms of 15 or 20 years, with several accumulation/payout structures to choose from — for example, a 5+10 structure (5 years of accumulation, then 10 years of payouts) or a 0+20 structure (payouts starting immediately from year 1). During the payout period, policyholders receive a guaranteed survival benefit equal to a percentage of the single premium (ranging from 5% to 10% depending on the structure chosen), plus any non-guaranteed cash bonuses declared yearly. The plan also provides death, total and permanent disability (TPD), and terminal illness coverage. Premiums are paid as a single lump sum, with annual premiums in the quoted range of $10,000 to $50,000 (average $27,544 across 1,124 quotes).

How It Compares

Measured on a common basis — age 35, male, non-smoker, $50,000 single premium — PrimeGold Bonus III sits alongside several competing single-premium endowment plans. The insurer's participating fund has delivered net investment returns of 2.39% (5-year) and 3.68% (10-year), with a total expense ratio of 1.54% over 5 years. Illustrated surrender value at year 10 for a $10,000 premium is $6,666 (projected up to $7,196), and the projected yield to maturity ranges from 1.87% to 2.99% per annum.

Against peers, AIA Retirement Saver (IV) shows stronger historical fund performance (3.20% 5-year, 4.90% 10-year) with a lower expense ratio of 1.30%, and a guaranteed surrender value of $51,948 at year 20. Manulife's RetireSavvy offers a $50,000 guaranteed surrender value at year 20 but has a higher expense ratio of 2.40%. Singlife Flexi Retirement II shows a lower 5-year return (1.24%) but a stronger 10-year figure (4.07%), with the highest expense ratio at 2.59%. PrimeGold Bonus III's expense ratio of 1.54% is competitive, though its fund returns trail AIA's over both periods.

Pros

• Guaranteed income stream: Survival benefits are guaranteed once the policy is in force, providing predictable yearly payouts during the payout period.
• Insurance protection included: Death, TPD, and terminal illness benefits are bundled with the savings component — death benefit is the higher of 110% of single premium less survival benefits paid, or guaranteed surrender value plus terminal bonus.
• Flexible structures: Four accumulation/payout combinations allow tailoring to different cash-flow needs.
• No underwriting required: Simplifies the application process.
• SRS premium payments allowed: Useful for tax planning.
• Competitive expense ratio: At 1.54% (5-year), it is lower than Manulife and Singlife alternatives.

Cons

• Modest projected returns: At 1.87%–2.99% projected yield to maturity, returns may lag other investment options, particularly in the lower scenario.
• Non-guaranteed elements: Cash bonuses and terminal bonuses depend on participating fund performance and are not assured.
• Early surrender risk: Surrendering early can result in values below premiums paid — illustrated surrender value at year 10 for a $10,000 premium is only $6,666 (guaranteed).
• Fund performance has been uneven: The 3-year net return of 0.71% is notably weak, though it improves over longer horizons.
• No CPFIS premium payment: Cannot be funded via CPF Investment Scheme.

Who It May Suit

PrimeGold Bonus III may suit investors seeking a structured, single-premium endowment with a guaranteed income stream and some insurance protection, who are comfortable with medium- to long-term commitment (15–20 years) and can accept that non-guaranteed bonuses depend on fund performance. It may be less suitable for those prioritising maximum investment returns or needing access to funds in the early years, given the significant early-surrender costs.

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.