1) a simple term coverage from NTUC of 40K and leaving the premium in a 0.25% savings account.
2) a 5% return investment.
You can buy online the NTUC term insurance at: https://appsonline.income.com.sg/uiTermLife/
It took me ten minutes and the premium for 40K is only $3.60/mth ($43.20/yr), and covers $2,000 more than my GE policy of 38K.
Columns definitions:
B: Yearly premium payable to GE, for 10 years.
C: Surrender value according to the policy contract.
D Premium payable to NTUC for a term insurance, also covering death, but without any surrender value. The coverage taken from NTUC to match GE Death benefit is can be found at column I
E: Column B - D, which means leave the money in a standard savings account, after deducting the NTUC premium.
F: Money lost to GE if you exit the contract. 30% goes in the pocket of the insurance agent, the rest, GE's profit.
G: Instead of leaving the money in savings account, what would be the return of a 5% investment.
There are some examples of moderate risk funds that return 5% at the bottom of this post.
H: Amount retrieved in case of death for the NTUC Term + Savings (always higher than the 38K GE protection)
K: Monthly premium for the NTUC Term. If can be found in NTUC Brochure
Unable to include the "cash bonus" in the table, as there is no value in the policy. Anyway, the cash bonus will not help to break-even within the 10 (and probably not even within 20) years given the huge sales and mgt cost.
Files:
Excel Worksheet
GE Policy
NTUC Brochure
Examples of fund that return 5% with moderate risk:
https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PPMIPM
https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PAM073
Of course the capital is not guaranteed and this is NOT an advice to invest in these funds.
The only advice here is that you are better off leaving your money in your savings account, buy a cheap term insurance from NTUC, which covers the same, than investing in a Life Insurance from Great Eastern.
I have not tried life insurance from other local insurers, so I am unable to comment about them. They may be equally bad, your may share your experience in the blog's comments.
There are some examples of moderate risk funds that return 5% at the bottom of this post.
H: Amount retrieved in case of death for the NTUC Term + Savings (always higher than the 38K GE protection)
I: NTUC Term coverage, just the amount needed to match the GE death benefit in complement to the savings. Once the savings reach 20K, we only need to get a 20K term from NTUC to match the 38K coverage from GE.
J: age of the insured, needed to get the exact NTUC premiumK: Monthly premium for the NTUC Term. If can be found in NTUC Brochure
Unable to include the "cash bonus" in the table, as there is no value in the policy. Anyway, the cash bonus will not help to break-even within the 10 (and probably not even within 20) years given the huge sales and mgt cost.
Files:
Excel Worksheet
GE Policy
NTUC Brochure
|
A
|
B
|
C
|
D
|
E
|
F
|
G
|
H
|
I
|
J
|
K
|
|
Year
|
GE Premium Paid
|
GE Surrender Value
(per 1K * 38) |
NUTC Premium Paid
|
Savings Acc 0.25%
|
Money lost to GE
(C - E) |
5% Investment
|
NTUC + Savings Death Benefit
|
NTUC Term Coverage
|
Age
|
Associated Premium
|
|
1
|
3,490.00
|
-
|
$43.20
|
3,446.80
|
(3,446.80)
|
3,446.80
|
43,446.80
|
40000
|
32
|
$3.60
|
|
2
|
6,980.00
|
-
|
$86.40
|
6,902.22
|
(6,902.22)
|
7,065.94
|
46,902.22
|
40000
|
33
|
$3.60
|
|
3
|
10,470.00
|
3,952.00
|
$118.80
|
10,377.07
|
(6,425.07)
|
10,876.84
|
40,377.07
|
30000
|
34
|
$2.70
|
|
4
|
13,960.00
|
5,662.00
|
$151.20
|
13,860.62
|
(8,198.62)
|
14,878.28
|
43,860.62
|
30000
|
35
|
$2.70
|
|
5
|
17,450.00
|
7,448.00
|
$187.20
|
17,349.27
|
(9,901.27)
|
19,076.19
|
47,349.27
|
30000
|
36
|
$3.00
|
|
6
|
20,940.00
|
9,310.00
|
$211.20
|
20,858.64
|
(11,548.64)
|
23,496.00
|
40,858.64
|
20000
|
37
|
$2.00
|
|
7
|
24,430.00
|
11,248.00
|
$235.20
|
24,376.79
|
(13,128.79)
|
28,136.80
|
44,376.79
|
20000
|
38
|
$2.00
|
|
8
|
27,920.00
|
13,262.00
|
$259.20
|
27,903.73
|
(14,641.73)
|
33,009.64
|
47,903.73
|
20000
|
39
|
$2.00
|
|
9
|
31,410.00
|
16,454.00
|
$271.20
|
31,451.49
|
(14,997.49)
|
38,138.12
|
41,451.49
|
10000
|
40
|
$1.00
|
|
10
|
34,900.00
|
19,418.00
|
$286.80
|
35,004.52
|
(15,586.52)
|
43,519.43
|
45,004.52
|
10000
|
41
|
$1.30
|
|
11
|
34,900.00
|
19,570.00
|
$302.40
|
35,076.43
|
(15,506.43)
|
45,695.40
|
45,076.43
|
10000
|
42
|
$1.30
|
|
12
|
34,900.00
|
19,722.00
|
$318.00
|
35,148.52
|
(15,426.52)
|
47,980.17
|
45,148.52
|
10000
|
43
|
$1.30
|
|
13
|
34,900.00
|
19,874.00
|
$333.60
|
35,220.79
|
(15,346.79)
|
50,379.18
|
45,220.79
|
10000
|
44
|
$1.30
|
|
14
|
34,900.00
|
20,026.00
|
$349.20
|
35,293.24
|
(15,267.24)
|
52,898.14
|
45,293.24
|
10000
|
45
|
$1.30
|
|
15
|
34,900.00
|
23,978.00
|
$370.80
|
35,365.88
|
(11,387.88)
|
55,543.05
|
45,365.88
|
10000
|
46
|
$1.80
|
|
16
|
34,900.00
|
24,168.00
|
$392.40
|
35,432.69
|
(11,264.69)
|
58,320.20
|
45,432.69
|
10000
|
47
|
$1.80
|
|
17
|
34,900.00
|
24,358.00
|
$414.00
|
35,499.67
|
(11,141.67)
|
61,236.21
|
45,499.67
|
10000
|
48
|
$1.80
|
|
18
|
34,900.00
|
24,586.00
|
$435.60
|
35,566.82
|
(10,980.82)
|
64,298.02
|
45,566.82
|
10000
|
49
|
$1.80
|
|
19
|
34,900.00
|
24,814.00
|
$457.20
|
35,634.14
|
(10,820.14)
|
67,512.92
|
45,634.14
|
10000
|
50
|
$1.80
|
|
20
|
34,900.00
|
25,004.00
|
$487.20
|
35,701.62
|
(10,697.62)
|
70,888.57
|
45,701.62
|
10000
|
51
|
$2.50
|
|
21
|
34,900.00
|
25,232.00
|
$517.20
|
35,760.88
|
(10,528.88)
|
74,433.00
|
45,760.88
|
10000
|
52
|
$2.50
|
|
22
|
34,900.00
|
25,460.00
|
$547.20
|
35,820.28
|
(10,360.28)
|
78,154.65
|
45,820.28
|
10000
|
53
|
$2.50
|
|
23
|
34,900.00
|
25,650.00
|
$577.20
|
35,879.83
|
(10,229.83)
|
82,062.38
|
45,879.83
|
10000
|
54
|
$2.50
|
|
24
|
34,900.00
|
25,878.00
|
$607.20
|
35,939.53
|
(10,061.53)
|
86,165.50
|
45,939.53
|
10000
|
55
|
$2.50
|
|
25
|
34,900.00
|
26,106.00
|
$651.60
|
35,999.38
|
(9,893.38)
|
90,473.77
|
45,999.38
|
10000
|
56
|
$3.70
|
|
26
|
34,900.00
|
26,334.00
|
$696.00
|
36,044.98
|
(9,710.98)
|
94,997.46
|
46,044.98
|
10000
|
57
|
$3.70
|
|
27
|
34,900.00
|
26,562.00
|
$740.40
|
36,090.69
|
(9,528.69)
|
99,747.33
|
46,090.69
|
10000
|
58
|
$3.70
|
|
28
|
34,900.00
|
26,790.00
|
$784.80
|
36,136.52
|
(9,346.52)
|
104,734.70
|
46,136.52
|
10000
|
59
|
$3.70
|
|
29
|
34,900.00
|
27,018.00
|
$829.20
|
36,182.46
|
(9,164.46)
|
109,971.43
|
46,182.46
|
10000
|
60
|
$3.70
|
|
30
|
34,900.00
|
27,246.00
|
$889.20
|
36,228.51
|
(8,982.51)
|
115,470.01
|
46,228.51
|
10000
|
61
|
$5.00
|
|
31
|
34,900.00
|
27,474.00
|
$949.20
|
36,259.08
|
(8,785.08)
|
121,243.51
|
46,259.08
|
10000
|
62
|
$5.00
|
|
32
|
34,900.00
|
27,702.00
|
$1,009.20
|
36,289.73
|
(8,587.73)
|
127,305.68
|
46,289.73
|
10000
|
63
|
$5.00
|
|
33
|
34,900.00
|
27,968.00
|
$1,069.20
|
36,320.46
|
(8,352.46)
|
133,670.97
|
46,320.46
|
10000
|
64
|
$5.00
|
|
34
|
34,900.00
|
28,196.00
|
$1,129.20
|
36,351.26
|
(8,155.26)
|
140,354.51
|
46,351.26
|
10000
|
65
|
$5.00
|
|
35
|
34,900.00
|
28,424.00
|
$1,129.20
|
36,382.14
|
(7,958.14)
|
147,372.24
|
36,382.14
|
0
|
66
|
0
|
|
36
|
34,900.00
|
28,690.00
|
$1,129.20
|
36,473.09
|
(7,783.09)
|
154,740.85
|
36,473.09
|
0
|
67
|
0
|
|
37
|
34,900.00
|
28,918.00
|
$1,129.20
|
36,564.27
|
(7,646.27)
|
162,477.90
|
36,564.27
|
0
|
68
|
0
|
|
38
|
34,900.00
|
29,146.00
|
$1,129.20
|
36,655.69
|
(7,509.69)
|
170,601.79
|
36,655.69
|
0
|
69
|
0
|
|
39
|
34,900.00
|
29,374.00
|
$1,129.20
|
36,747.32
|
(7,373.32)
|
179,131.88
|
36,747.32
|
0
|
70
|
0
|
|
40
|
34,900.00
|
29,602.00
|
$1,129.20
|
36,839.19
|
(7,237.19)
|
188,088.47
|
36,839.19
|
0
|
71
|
0
|
Examples of fund that return 5% with moderate risk:
https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PPMIPM
https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=PAM073
Of course the capital is not guaranteed and this is NOT an advice to invest in these funds.
The only advice here is that you are better off leaving your money in your savings account, buy a cheap term insurance from NTUC, which covers the same, than investing in a Life Insurance from Great Eastern.
I have not tried life insurance from other local insurers, so I am unable to comment about them. They may be equally bad, your may share your experience in the blog's comments.
