NTUC Income Gro Capital Ease Review

The NTUC Income Gro Capital Ease is a short-term endowment plan that saves you the trouble of locking in your funds for long periods.

On top of that, this policy also provides guaranteed returns, making it appear just like your regular fixed deposit accounts in financial institutions.

Having said that, we’ve put together a review of the NTUC Income Gro Capital Ease to help you decide whether it’s right for you.

My Review of the NTUC Income Gro Capital Ease

The NTUC Income Gro Capital Ease is just like what its name describes: to grow your capital with ease.

In designing this policy, NTUC Income has lowered entry barriers and minimised any obstacles that might deter you from considering this plan.

This includes allowing you to effortlessly purchase the policy online, waiving the need for any medical underwriting, providing policyholders ease of mind with guaranteed returns, and also keeping the policy term shorter than most other plans.

However, the NTUC Income Gro Capital Ease is not without its downsides either.

Being a short-term policy, NTUC Income requires you to make a one-time premium payment of more than $10,000. For some, this may be uncomfortable to fork out as it could significantly deplete your savings.

As such, it is always important that you safeguard your finances, such as ensuring sufficient rainy day funds, before committing such a large sum.

In addition, this policy is more well-suited for those looking to invest rather than those looking to protect.

The NTUC Income Gro Capital Ease focuses on acting as a short-term plan to grow your savings.

This means that the protection offered under this policy only covers basic features such as death and TPD, and there are no optional riders for you to increase your coverage.

The 3-year policy term also means that any coverage under this plan will terminate after 3 years, and you would have to look for other replacement policies.

Since it is a non-participating plan, policyholders also do not have the luxury of receiving bonuses, limiting the income you might have received from your investment or premiums.

However, to be fair to NTUC Income, these cons are similar throughout all short-term endowment policies.

As short-term endowment policies operate on a time-limited basis with limited slots for each tranche, it’s best to opt for the next available tranche (regardless of insurer), if this is what you want.

In short, those who seek a place to store their savings that offers basic coverage as an alternative to savings and fixed deposit accounts can consider the NTUC Income Gro Capital Ease.

However, different individuals may have different needs and circumstances, and it is always best to consult a financial advisor to find the one policy which best fits your needs.

Let’s now explore the NTUC Income Gro Capital Ease in detail:

Criteria

• Entry Age of the Insured: 10 – 80 years old
• Entry Age of the Policyholder: 16 years old and above
• Fixed policy term of 3 years
• Single premium payment option
• Only online purchase option is available at the point of writing, with a limited tranche being offered
• No medical underwriting required

General Features

Policy Terms

The NTUC Income Gro Capital Ease has a fixed policy term of 3 years.

This means that you will get back your savings and returns just after 3 years!

Premium Payment Terms

Under the NTUC Income Gro Capital Ease, you can only have to make a single premium payment at the start.

This single premium can be paid using either cash (PayNow QR or eGIRO) or your Supplementary Retirement Scheme (SRS) savings.

For those who plan on purchasing this policy, do note that there is a minimum and maximum single premium of $10,000 and $200,000 per policy, respectively.

Despite the above single premium limits, each insured is allowed to purchase up to a total premium of $500,000.

Payout Options

Maturity Benefit

At the end of the 3 years, you are eligible to receive the guaranteed maturity benefit less any policy loan and interest, provided the policy is still in effect.

At the point of writing, this policy’s guaranteed yield at maturity is at 3.55% p.a., which translates to a guaranteed maturity benefit of 111.03% (rounded to the nearest 2 decimal places) of the net single premium.

For example, if you pay a net single premium of $10,000, you will be eligible to receive $10,000 x 111.03% = $11,103 after the plan matures.

Upon claiming the maturity benefit, the policy will then be deemed terminated.

Surrender Benefit

Should you require some cash flow before the policy term is up, you can choose to surrender the policy, and you will be able to receive the surrender value.

However, the early termination will incur high costs, and you may not be able to receive any money, or you may suffer a loss from the premiums paid.

As such, it is always advisable to carefully weigh your options and have sufficient funds set aside before committing to this policy.

To determine how much you will receive from early surrender, please check your policy documents or talk to your financial advisor.

Protection

Death Benefit

In the event that the insured passes away during the 3-year policy term, this benefit will be paid out to their beneficiaries.

However, the amount of payout received will depend on when the event resulting in the insured’s passing occurs.

Any outstanding policy loans and their accumulated interest will be deducted from the total benefit, and the policy will terminate after the benefit is paid out.

For example, if you pay a net single premium of $20,000 on 1st January 2023, your loved ones will be eligible to receive $15,000 (less any outstanding policy loans and interest) if you, unfortunately, pass away before 1st January 2024.

However, if your passing occurs between 1st January 2024 and 1st January 2026, they will instead receive $15,000 x 105% = $15,750 (less any outstanding policy loans and interest).

Total and Permanent Disability Benefit

Apart from the Death Benefit, the NTUC Income Gro Capital Ease also covers you for total and permanent disability (TPD).

To be eligible for this benefit, the insured must be:

• Below the age of 70 at the date of diagnosis; and
• Certified to be suffering from TPD for at least 6 consecutive months by a registered medical practitioner.

Like the Death Benefit, the amount your beneficiaries receive also depends on the date the diagnosis occurs.

Any outstanding policy loans and their accumulated interest will be deducted from the total benefit, and the policy will terminate after the benefit is paid out.

For example, if you pay a net single premium of $20,000 on 1st January 2023, your loved ones will be eligible to receive $15,000 (less any outstanding policy loans and interest) if you are diagnosed with TPD before 1st January 2024.

However, if your TPD diagnosis occurs between 1st January 2024 and 1st January 2026, they will instead receive $15,000 x 105% = $15,750 (less any outstanding policy loans and interest).

Considering all policies issued by NTUC Income and any other insurer, the total TPD benefit payable should not exceed S$6.5 million.

Summary of NTUC Income Gro Capital Ease

References

• Policy Website
• Policy FAQs
• Policy Terms