Gro Cash Plus by Income Insurance Limited: A New Contender in Singapore’s Whole Life Market

Gro Cash Plus is a regular premium whole life plan from Income Insurance Limited, designed to provide lifelong coverage with a cash value component. The policy term lasts until the anniversary immediately after the original insured’s 120th birthday, with a flexible premium payment term of 2 to 5 years. A key feature of this participating life insurance product is its "Cash Coupon" structure: once the premium term ends and all premiums are paid, the policy begins paying annual cash benefits based on the sum assured and the insured’s entry age. These benefits continue annually for as long as the insured is alive. Additionally, Gro Cash Plus offers a Guaranteed Insurability Option on specific life events (such as marriage or purchasing property) without evidence of good health, and allows for a Secondary Insured appointment to ensure policy continuity upon the death of the primary insured. It does not allow SRS or CPFIS premium payments.

How it compares

When evaluated against similar whole life payout products for a 35-year-old male non-smoker with a $100,000 sum assured, Gro Cash Plus presents distinct cost and return profiles compared to its peers.

Premium Costs Gro Cash Plus is notably more expensive on a per-dollar-of-sum-assured basis in this comparison. At $95,238 per year for a $100,000 sum assured (over a 2-to-5-year term), it is cheaper than the other listed products which are priced at $100,000 per year. However, the basis of comparison differs: Gro Cash Plus allows for a shorter or more flexible premium term (2-5 years) compared to the single-pay nature of Signature Income and Esteem Eternity II, or the 2-5 year term of Great Lifetime Payout 3. The high annual premium reflects the immediate start of cash flow post-premium term rather than long-term accumulation.

Surrender Values (Year 20) In terms of liquidity at year 20, Gro Cash Plus offers a guaranteed surrender value of $285,714. This is significantly lower than Great Lifetime Payout 3, which shows a higher projected surrender value of $300,000. In contrast, Signature Income (III) and Esteem Eternity II show much lower year-20 surrender values of $80,000 each, likely due to their single-pay premium structures where the bulk of value accrues later or is structured differently.

Returns and Expenses Gro Cash Plus demonstrates strong historical performance metrics from its Life Participating Fund. Its net investment returns are 1.58% (5-year) and 4.04% (10-year), with a Total Expense Ratio (TER) of 0.94% over 5 years. These TER figures are competitive, being lower than Great Eastern’s 1.54% and significantly lower than Manulife’s 2.64% and Etiqa’s 2.25%. However, its 5-year net return (1.58%) is lower than Great Lifetime Payout 3’s 2.39%. It is important to note that these returns are non-guaranteed and subject to the performance of the participating fund.

Pros

• Flexible Premium Term: Offers a premium payment term of 2 to 5 years, allowing for shorter commitment periods compared to single-pay alternatives.
• Immediate Cash Flow Potential: Begins paying cash benefits shortly after the short premium term ends, providing earlier liquidity than many long-accrual policies.
• Low Expense Ratio: The 5-year TER of 0.94% is among the lowest in this peer group, potentially preserving more value for the policyholder.
• Guaranteed Insurability: Includes a valuable rider allowing new coverage without medical underwriting upon specific life events.
• Policy Continuity: The Secondary Insured option helps keep the policy active if the primary insured passes away.

Cons

• Lower Year-20 Surrender Value: Compared to Great Lifetime Payout 3, the guaranteed surrender value at year 20 is lower ($285,714 vs $300,000).
• Non-Guaranteed Returns: As a participating policy, cash bonuses and investment returns are not guaranteed and depend on the Life Participating Fund’s performance.
• No SRS/CPFIS Usage: Premiums cannot be paid using Supplementary Retirement Scheme or CPF Investment Scheme funds, limiting funding options for some consumers.
• High Annual Premium Load: The annual premium required is substantial relative to the sum assured when compared to single-pay peers on a direct dollar-per-year basis.

Who it may suit

Gro Cash Plus may suit individuals seeking a whole life policy with a shorter premium payment period (2-5 years) who wish to start receiving cash benefits relatively early in the policy’s lifecycle. It is particularly relevant for those who value low expense ratios and want the flexibility of a Guaranteed Insurability Option for future financial planning. It may be less suitable for those relying on SRS/CPFIS funds or those prioritizing maximum surrender value at year 20 over earlier cash flow generation.

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.