/5
Income replacement for dependants or self in case of:
Provides a monthly payout, comprising both guaranteed and non-guaranteed amounts for the chosen payout duration of 10, 20 years, or up to age 100.
Has a relatively high guaranteed yield proportion to cushion the ‘Safe Retirement Income Floor’ on top of CPF LIFE payouts
Availability of different premium options and payout options:
Disability, Accidental Death, and Retrenchment benefits provide extra payouts and waive premiums during the payment term, reducing financial strain while keeping retirement plans on track
A minimum accumulation duration of 5 years is required after the last premium payment before payout can commence. As such, the plan is unsuitable for policyholders seeking immediate payout benefits.
Example 1:
Based on $100,000 single premium plan entered at ages 40, 50, and 60, and left to accumulate till age 65 before payout commences.
Payout duration of 20 years, starting from age 65 to 85.
| Age of entry to plan | Monthly Guaranteed Income (a) | ^Monthly Non-Guaranteed Income (b) | Total Monthly Income (a+b) | Cumulative payouts from age 65 to 85 | ^Yield at Maturity @ age 85 (illustrated Rate of 4.25%) |
| 40 | $594 | $1,006 | $1,601 | $384,137 | 4.00% |
| 50 | $450 | $556 | $1,006 | $241,507 | 3.69% |
| 60 | $421 | $198 | $618 | $148,428 | 2.76% |
Example 2:
Based on $205,800* single premium plan incepted at age 55 and left to accumulate for 10 years, till age 65 before payout commences.
Payout duration from age 65 to age 100, for 35 years.
| Age of entry to plan | Monthly Guaranteed Income (a) | ^Monthly Non-Guaranteed Income (b) | Total Monthly Income (a+b) | Cumulative payouts from age 65 to 85 | ^Yield at Maturity @ age 85 (illustrated Rate of 4.25%) |
| 55 | $695 | $644 | $1,339 | $562,174 | 4.02% |
* $205,800 is used as a comparison against the CPF Full Retirement Sum for Year 2024,
^The non-guaranteed portion of the monthly income and the yield at maturity are based on the illustrated rate of return of the participating fund at 4.25%.
Disclaimer: This publication has not been reviewed by the Monetary Authority of Singapore. The information contained herein does not have any regard to the specific investment objective(s), financial situation or particular needs of any individual. Buying insurance is a long-term commitment and should be based on your unique needs and the suitability of the products. It is advisable to seek advice from a financial adviser to assess your needs and guide you on the features and details of the products before making any financial decisions. The coverage, benefits, premiums, and terms of insurance policies may vary depending on individual circumstances and insurance providers. Individuals are encouraged to review their own insurance needs and policies and seek advice tailored to their specific situation. While every reasonable care is taken to ensure the accuracy of the information provided, no responsibility can be accepted for any loss or inconvenience caused by any error or omission.
There are some insurances that can be conveniently purchased online, allowing you to get started quickly and easily. However, If you need assistance from an adviser, we can refer you too our partner, iFAST.
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