Gro Cash Sure by Income Insurance Limited: A Whole Life Plan with Immediate Cash Flow

Gro Cash Sure is a participating whole life insurance plan offered by Income Insurance Limited, designed to provide lifelong protection alongside a structured cash payout mechanism. Unlike traditional endowment plans that pay out only at maturity, this policy begins distributing annual cash benefits equal to 2% of the sum assured immediately after the premium term ends (either year 5 or 10), continuing for as long as the insured is alive. The plan also includes a maturity benefit at the end of the policy term (upon the insured’s 120th birthday anniversary) and offers a Guaranteed Insurability Option, allowing policyholders to purchase additional coverage without medical underwriting upon specific life events such as marriage or childbirth. With an insurer credit rating of AA- (S&P), it targets consumers seeking long-term wealth accumulation with periodic liquidity, though it carries significant distribution charges and non-guaranteed return elements.

How it compares

When evaluated on a like-for-like basis for a 35-year-old male non-smoker with a $100,000 sum assured, Gro Cash Sure presents distinct cost and return profiles compared to its peers.

Premium Costs: Gro Cash Sure requires an annual premium of $95,238 over a 6-to-10-year term. This is notably lower than the $100,000 annual premiums required for Great Eastern’s Great Lifetime Payout 3, Manulife’s Signature Income (III), and Etiqa’s Esteem eternity II. However, it is important to note that while Gro Cash Sure has a multi-year premium term, the competitor plans listed are single-pay or have different premium structures, making direct annual cost comparisons complex without adjusting for total outlay.

Surrender Values (Year 20): The most striking difference lies in the projected surrender value at year 20 per $100,000 sum assured. Gro Cash Sure projects a surrender value of $966,759, which is substantially higher than Great Lifetime Payout 3 ($300,000), Signature Income (III) ($80,000), and Esteem eternity II ($80,000). This suggests that Gro Cash Sure accumulates cash value more aggressively in the medium term, likely due to its participating nature and bonus structures.

Returns and Expenses: In terms of net returns over 5 and 10 years, Gro Cash Sure shows 1.58% and 4.04% respectively. This outperforms Esteem eternity II (-0.40% / 1.92%) but trails behind Great Lifetime Payout 3 (2.39% / 3.68%). The Total Expense Ratio (TER) at year 5 is 0.94%, which is lower than Great Lifetime Payout 3 (1.54%), Signature Income (III) (2.64%), and Esteem eternity II (2.25%), indicating a more cost-efficient structure in the early years relative to fees deducted from the fund.

Pros

• High Projected Cash Value: The Year 20 surrender value ($966,759 per $100k SA) is significantly higher than comparable products, offering substantial liquidity options mid-term.
• Lower Distribution Charges: With a distribution cost of $23,200 for a $50,000 sum assured, the upfront charge is relatively contained compared to the high TERs seen in some competitors.
• Guaranteed Insurability Option: Allows for up to two additional policies without medical underwriting upon key life events (e.g., marriage, childbirth), providing valuable future coverage flexibility.
• Competitive Premium: The annual premium of $95,238 is lower than the $100,000 flat rate seen in several peer whole-life/payout plans for similar demographics.

Cons

• Non-Guaranteed Returns: A significant portion of the value relies on non-guaranteed bonuses from the Life Participating Fund. The illustrated cash bonus rates (7.30%–7.90%) are not guaranteed and may vary based on fund performance.
• Complex Payout Structure: Cash benefits start only after the premium term ends, meaning there is no immediate income stream during the accumulation phase.
• Limited Payment Flexibility: The plan does not allow SRS or CPFIS premium payments, restricting funding sources to cash or other non-regulated accounts.
• Early Surrender Risk: As with most whole life plans, surrendering in early years may result in losses, as the surrender value may be less than total premiums paid.

Who it may suit

Gro Cash Sure is best suited for high-net-worth individuals who have exhausted other tax-advantaged investment channels and seek a lifelong insurance wrapper with periodic cash flow needs. It appeals to those who prioritize high mid-term liquidity (evidenced by the strong Year 20 surrender value) and desire the flexibility to expand coverage later in life without medical checks. However, it may not be ideal for consumers seeking guaranteed returns or immediate income, as a significant portion of the projected benefits depends on non-guaranteed fund performance.

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.