Complete Life Secure (200%) (With DD) by Income Insurance Limited

Complete Life Secure (200%) (With DD) is a regular premium whole life participating plan from Income Insurance Limited, designed to provide lifelong coverage with cash value accumulation. The policy requires premium payments for a limited term, after which the sum assured and accumulated bonuses form the core of the death benefit. A key feature of this product is its multiplier cover, which can range from 100% to 500% of the basic sum assured before the insured reaches specific ages (65, 75, or 80). The plan includes a non-participating rider that provides retrenchment benefits and contributes to the multiplier cover. It also offers a Flexi Cash Access option for liquidity and a Guaranteed Insurability Option for future life events. With an insurer credit rating of AA- (S&P), it targets consumers seeking long-term protection with potential cash value growth, though returns are partly dependent on the Life Participating Fund’s performance.

How it compares

The following comparison is based on data for a 35-year-old male non-smoker with $100,000 sum assured. Premiums and surrender values are normalized per $100k SA for comparability.

Premium Costs Complete Life Secure (200%) (With DD) has an annual premium ranging from $3,677 depending on the chosen premium term (21 to 25 years). This is significantly lower than Essential whole life cover with CI by Etiqa ($9,230/yr, 2-5 yr term) and LifeReady Plus (II) by Manulife ($5,455/yr, 21-25 yr term). It is also slightly cheaper than China Life Multiplier Guardian Supreme ($3,813/yr), making it one of the more cost-effective options in this peer group for multiplier coverage.

Surrender Value at Year 20 At the 20-year mark, the projected surrender value per $100k SA is $17,000. This is higher than China Life’s $14,110 but lower than Etiqa’s $26,300 and Manulife’s $17,500. While Etiqa offers the highest liquidity at this stage, it comes with a much higher premium cost and negative 5-year net return.

Returns and Expenses The product shows a 5-year net investment return of 1.58% and a 10-year return of 4.04%. In comparison, China Life offers a stronger 5-year return of 2.36%, though its 10-year data is not provided. Etiqa’s returns are notably lower, with a negative -0.40% at 5 years and 1.92% at 10 years. Regarding costs, Complete Life Secure has a Total Expense Ratio (TER) of 0.94% at year 5, which is the lowest among its peers (China Life: 3.31%, Etiqa: 2.25%, Manulife: 2.40%). This suggests lower internal drag on the policy’s growth compared to competitors.

Pros

• Competitive Premiums: Offers a lower annual premium ($3,677) compared to similar whole life products from Manulife and Etiqa for comparable coverage terms.
• Low Expense Ratio: The TER of 0.94% at year 5 is significantly lower than peers like China Life (3.31%) and Manulife (2.40%), potentially preserving more policy value over time.
• High Multiplier Coverage: Provides up to 500% multiplier cover, offering substantial death benefit leverage in the earlier decades of the policy.
• Guaranteed Insurability: Allows the insured to purchase additional coverage without medical underwriting upon specific life events (e.g., marriage, birth of a child).

Cons

• Low Early Returns: The 5-year net return of 1.58% is modest compared to China Life’s 2.36%, and significantly lower than the long-term projection.
• Early Surrender Penalties: As with most whole life plans, surrendering early (before year 20) may result in a loss, as illustrated by the relatively low cash value accumulation in the initial years.
• Complex Flexi Cash Access: The option to access cash value requires reducing the sum assured annually and cannot be amended once exercised, limiting flexibility.
• No SRS/CPFIS Payment: Premiums cannot be paid using Supplementary Retirement Scheme (SRS) or CPF Investment Scheme funds.

Who it may suit

This product may suit individuals aged 35 who prioritize lower annual premiums while still wanting multiplier protection and lifelong coverage. It is particularly relevant for those concerned with policy efficiency, given its low expense ratio compared to peers. Consumers who value the Guaranteed Insurability Option for future planning or desire a balance between cost and cash value growth (as seen in the 10-year return of 4.04%) may find this suitable. However, those seeking higher liquidity in the first decade might prefer Etiqa’s product despite the higher cost, while those prioritizing maximum early returns might look at China Life.

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.