Guaranteed Life Annuity is a plan that pays a regular income to the annuitant for the rest of his/her lifetime. The payout will start either immediately or upon attaining a certain age (in the case of a deferred annuity).
There are two types of annuity: immediate and deferred.
This is a subset of the current Guaranteed Life Annuity (Immediate), designed specially for insured who meets the following conditions:
The impaired lives have a shorter life expectancy and we provide a payout that is approximately 15% higher than standard rates.
The standard BI/Product Summary will still be used for Guaranteed Life Annuity (Immediate) at point of sales. If the conditions for impaired life are met, we will issue an endorsement with the policy document showing the higher payout.
The death benefit will be paid to the beneficiaries in one lump sum.
If death were to occur during the deferred period, the higher of the single premium, or 97% of the single premium accumulated with interest and bonuses is paid. The interest rate is guaranteed at 2.5% per annum.
If death were to occur after the annuity payout has started, the single premium with interest guaranteed at 2.5% per annum and bonuses accumulated during the deferred period, less total annuity paid will be refunded.
Please refer to the benefit illustration for details.
Riders / supplementary benefits
No, you cannot add rider for this plan.
If you wish to enhance your protection with riders, you may consider attaching riders to other more suitable policies e.g. Family Insurance Plan specially designed to enable riders to be continued for a longer term.
Cash value and bonuses
Yes, your policy will have a cash value immediately.
Yes, annual bonuses are declared yearly. Once declared, they shall be added to the annuity payouts. Future bonuses are non-guaranteed.
If the policy is surrendered before the end of the deferred period, we will refund 90% of the single premium accumulated with interest and bonus.
If the policy is surrendered at the end of the deferred period, we will refund the higher of the single premium or 90% of the single premium accumulated with interest and bonuses.
The interest rate for surrender is non-guaranteed and is determined by the appointed actuary. The current surrender benefit interest rate is set at 1.75% per annum.
Once annuity payout has commenced, surrenders are usually not encouraged.
Buying a life insurance policy is a long-term commitment and an early termination of the policy usually involves high costs and the surrender value may be less than the total premiums paid.
Eligibility and premium payments
The policy is available for entry age of 40 and above where entry age cannot exceed 85.
The minimum single premium set is $10,000. The maximum single premium per life is $2 million.
You can only buy this plan using cash or monies from SRS.
For plans bought using SRS, they are subject to the condition that annuity payouts cannot commence before the prevailing retirement age, currently at 62.
They are also subjected to other prevailing conditions set by SRS.
No, you cannot backdate your policy.
You can loan up to 90% of the cash value of your Annuity policy, only if it is purchased using cash. This limit will be subjected to revision.
Policy loan is not allowed for policies purchased using monies from CPF or SRS.
The loan repayment amount will be deducted from each annuity payout you are receiving. You will therefore have to make other provisions if you are depending on your annuity payouts as your regular income.
You will receive nothing if the full annuity payout is used to repay the loan. This happens when the loan amount exceeds the cash value of your policy after factoring in the interest charged on your loan.