GREAT SP (24-month) — Product Review

Overview

GREAT SP (24-month) is a non-participating single premium endowment plan offered by Great Eastern Life, with a short 2-year policy term. It combines modest savings accumulation with death and total and permanent disability (TPD) protection. The plan pays a guaranteed survival benefit of 0.70% of the single premium at the end of each policy year, plus a maturity benefit equal to 100% of the single premium at the end of the term. For a $10,000 single premium, the illustrated maturity value is $10,000 guaranteed, with a projected yield to maturity of 0.70% p.a. Distribution costs are low at $32 per $10,000 premium. The insurer holds an AA- credit rating from Standard & Poor's. Notably, this plan has no sum assured to normalise against — it is quoted by premium, meaning the buyer chooses the outlay and the payout follows.

How it compares

At a common basis of age 35, male, non-smoker, with a $50,000 single premium, GREAT SP (24-month) stands apart from its peers primarily due to its very short term. The comparison table shows no surrender value at year 20 or net return figures for this product because the policy matures after just 2 years — long before those measurement points.

By contrast, AIA Retirement Saver (IV) (SRS) offers a coverage term above 40 years, with a guaranteed surrender value of $51,948 at year 20 and net returns of 3.20% (5-year) and 4.90% (10-year), albeit with a higher total expense ratio of 1.30%. RetireSavvy from Manulife provides a 36–40 year coverage term with a $50,000 guaranteed surrender value at year 20 and a 2.40% TER. Singlife Flexi Retirement II offers 16–20 years of coverage with net returns of 1.24% (5-year) and 4.07% (10-year) and a 2.59% TER.

GREAT SP's 0.70% p.a. projected yield is significantly lower than the longer-term alternatives, reflecting its very short duration and emphasis on capital preservation rather than growth.

Pros

• Capital guaranteed at maturity — 100% of single premium returned if the life assured survives the 2-year term
• Low distribution cost — just $32 per $10,000 premium
• No underwriting required — simplified application process
• SRS contributions allowed — useful for retirement planning
• Death benefit of 105% of premium — provides a small buffer above capital
• Short commitment — funds are locked in for only 2 years
• Insurer rated AA- by Standard & Poor's

Cons

• Very low projected yield — 0.70% p.a. is below typical fixed deposit rates in most environments
• No participation in fund performance — non-participating plan with no bonuses
• Early surrender risk — surrender value may be zero or less than premiums paid
• Limited protection element — death/TPD coverage is minimal relative to the premium
• No CPFIS eligibility — cannot use CPF Investment Scheme funds
• TPD cap of S$5,000,000 across all policies for each life assured

Who it may suit

GREAT SP (24-month) may suit investors seeking a very short-term, capital-guaranteed parking option for funds, particularly those using SRS contributions who want certainty of capital return with a modest yield. It could also appeal to those who value the simplicity of a 2-year commitment and the small insurance protection element. However, for those seeking meaningful savings growth or longer-term retirement accumulation, the longer-duration alternatives in the comparison — despite higher expense ratios — offer substantially better projected returns over time. This plan is not designed for wealth accumulation or significant protection needs.

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.