Frequently Asked Questions

GrowthLink

Product coverage

    • Q: What is GrowthLink? A:

      GrowthLink is a single premium investment-linked plan 1.

      1 An investment-linked plan is a plan where the premiums paid are used to purchase units in an investment fund. The price of the units will depend on the investment performance of the fund

    • Q: What are the benefits payable? A:

      We will pay if the Insured dies or becomes totally and permanently disabled in accordance to the terms set out in the policy document.

Death benefit

    • Q: What is the death benefit? A:

      We will pay the cash value or Basic Benefit of your policy, whichever is higher.

      • The cash value will be based on the valuation price on the date the claim submission is received by us.
      • The Basic Benefit is as follows:
      Age Basic Benefit
      Standard Life Non-standard Life
      0 - 64 105% x (Initial single premium + Total top-up premiums - Total withdrawals) 101% x (Initial single premium + Total top-up premiums - Total withdrawals)
      65 and above 100% x (Initial single premium + Total top-up premiums - Total withdrawals) 100% x (Initial single premium + Total top-up premiums - Total withdrawals)
    • Q: What is the exclusion for death benefit? A:

      We will not pay the death benefit if the insured committed suicide within one year from the cover start date. We will refund only the cash value and the policy will be completely free of all legal effect.

    • Q: What is the meaning of non-standard life? A:

      Non-standard life refers to an insured suffering from any of the following medical conditions, at the time of application, within three months from the cover start date:

      • Cancer
      • Heart and/or Heart Valve Conditions
      • Chronic kidney disease
      • Stroke and/or transient ischaemic attacks
      • Liver cirrhosis and/or end stage liver failure
      • Systemic lupus erythematosus
      • Terminal illness
      • Total loss, or total loss of use of one or both limbs, or total loss of use of one or both eyes
      • Chronic obstructive lung disease and/or end stage lung disease
      • Diabetes

Total and permanent disability (TPD) benefit

    • Q: What is the total and permanent disability benefit? A: In the event the insured is diagnosed as totally and permanently disabled before the age of 70 (last birthday), we will pay the basic benefit or cash-in value at the time we are told of the claim, whichever is higher.
       
      The basic benefit is as follows:
       
      Age when becoming totally
      and permanently disabled
      Basic Benefit
      Standard Life Non-standard Life
      Under 65 1.05 times
      net premium
      1.01 times
      net premium
      Above 64 1 times
      net premium
      1 times
      net premium
    • Q: What is the meaning of totally and permanently disabled? A:

      The insured must be incapable of engaging in any occupation when he/she is totally and permanently disabled. We do not pay if the insured is merely unable to perform the same job as before, or is unable to perform a job to which his/her training, education or experience is suited.

      Total and permanent disability/totally and permanently disabled means the inability to take part in any paid work for the rest of the insured’s life, or total physical loss.

      “Total physical loss” means:

      • the total and permanent loss of sight in both eyes;
      • the loss of, or total and permanent loss of use of, two limbs at or above the wrist or ankle; or
      • the total and permanent loss of sight in one eye and the loss of, or total and permanent loss of use of, one limb at or above the wrist or ankle.
    • Q: What are the exclusions for total and permanent disability benefit? A:

      We will not pay this benefit if your claim arises from:

      • deliberate acts such as self-inflicted injuries, illnesses or attempted suicide;
      • unlawful acts, provoked assault, or deliberate exposure to danger; or
      • effects of alcohol, drug or any dependence.

      We will also not pay this benefit unless the Insured is certified by a registered medical practitioner to have been totally and permanently disabled for at least six months in a row.

Riders/supplementary benefits

    • Q: Can I add riders? A:

      No, you cannot add riders for this plan.

Cash value and bonuses

    • Q: Is there any cash value for this plan? A:

      Yes, your policy has a cash value. The amount of cash value will be based on the valuation price (offer price) of your units multiplied by the number of units, less charges and deductions if applicable.

      The cut-off time used to determine the pricing of units is 3.00 pm (Singapore time) on each business day (Monday to Friday, excluding weekends and public holidays).

    • Q: Does this plan provide any bonus? A:

      No, this plan does not provide bonus.

    • Q: Is there a surrender value for my policy? A:

      Yes, your policy has a surrender value. The surrender value is the amount of cash value, less charges and deductions if applicable.

      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 payment

    • Q: Can I use cash, CPF or SRS funds to buy this plan? A:

      You can only use cash or SRS to buy this plan.

    • Q: What is the minimum and maximum premium set for this plan? A:

      The minimum single premium investment is $10,000 per policy, with a minimum of $2,500 allocated to each selected fund.

      There is no maximum limit set for investment but it will be subjected to an assessment of your health and financial condition.

    • Q: Can I backdate my policy? A:

      No, you cannot backdate your policy.

    • Q: How can I increase my investment? A:

      You can do a single premium top-up.

      The minimum top-up premium is $2,500 per top-up. For each top-up premium payment, we will allocate extra 0.5% as bonus units.

      Bonus Units = Top-up Premium/ Offer Price × 0.5%

      If you wish to top-up into more than one fund, the premium amount allocated into each of the selected fund must be at least $1,000.

      The top-up premium will be taken into account for the computation of insurance coverage.

Investment-linked policy (ILP) funds available for investment

    • Q: What investment-linked policy (ILP) funds are available for my investment? A:

      The following ILP funds are available for your investment:

      Core Funds Target Maturity Funds
      • Singapore Bond Fund
      • Singapore Equity Fund
      • Global Bond Fund
      • Global Equity Fund
      • Aim 2025
      • Aim 2035
      • Aim 2045
      • Aim Now
      Managed Funds Specialised / Thematic Funds
      • Singapore Managed Fund
      • Asia Managed Fund
      • Global Managed Fund (Conservative)
      • Global Managed Fund (Balanced)
      • Global Managed Fund (Growth)
      • Asian Bond Fund
      • Asian Income Fund
      • Global Income Fund
      • Prime Fund
      • Takaful Fund
      • Global Technology Fund
      • Money Market Fund (available for top-up and switching only)
    • Q: Which investment-linked policy (ILP) fund offers distribution? A:

      Aim Now Fund, Asian Income Fund, Asian Bond Fund and Global Income Fund offers distribution.
      The distribution will be made out of the income, capital gains, and/or capital of the respective funds. The unit price of the respective funds will be reduced accordingly after the distribution. The number of units available will remain the same, unless the distribution is reinvested into the fund.

      The details for distribution are as follows:

      Distribution Features Aim Now Fund Asian Income Fund Global Income Fund Asian Bond Fund
      Amount of distribution Semi-annual distributions of up to 3% of the net asset value.
      The distributions are not guaranteed.
      Monthly distributions of up to 5% per annum of the net asset value.
      The distributions are not guaranteed.
      Monthly distributions of 4% to 5% per annum of the net asset value.
      The distributions are not guaranteed.
      The sub-fund intends to provide a monthly distribution with effect from 27 May 2016. The underlying fund has historically provided a monthly payout of around 4.5% to 5.5% p.a. The distributions are not guaranteed.
      Declaration Dates The Declaration Dates are set as 31 May and 30 Nov each year.

       
      The Declaration Dates are set as the second last business day of each month. The Declaration Date is usually set on the 4th Tuesday of the month. The Declaration Date is usually set on the 3th last business day of each month.
      If these dates fall on a weekend/public holiday, the last business day before these dates will be taken as the Declaration Date.
      The Declaration Date is subject to review and the dates are stated in our website.

       
      Important notes on distribution for Asian Bond Fund
      The first declaration for distribution is scheduled to start on 27 May 2016. The distribution will be paid within 45 days from the Declaration Date.

       

    • Q: What options are available for distribution? A:

      You can choose to encash or reinvest the distribution (can be different for each fund) and the latest instruction received by Income before the Declaration Date will be applicable. A combination of encashment and reinvestment option within a fund is not allowed.

      The default option for distribution is to reinvest them at bid price into the respective fund.

      If you wish to encash the distribution, you will need to either indicate your choice in the application form or notify us in writing at least 30 days before the Declaration Date. A cheque would be sent to you within 45 days from the Declaration Date.

      However, any distribution below S$50 has to be reinvested and encashment is not allowed. Also, any distribution from funds purchased using CPFIS/SRS monies, if applicable, will also be reinvested.

      The unit prices for reinvestment will be determined on Payout date, which would be within 45 days from the Declaration Date.

    • Q: Will the encashment and reinvestment of distribution affect the insurance coverage provided by the ILP? A:

      The insurance coverage is not affected by the encashment of distribution when they are due. Likewise, reinvestment of distribution into the fund will not increase the net investment.

      However, if the distribution is reinvested and subsequently withdrawn, the net investment will be reduced accordingly.

    • Q: How can I obtain more information on your investment-linked policy (ILP) funds? A:

      Policyholder can refer to the Fund Report for more information. These reports are available in our website.

    • Q: Which investment-linked policy (ILP) fund should I invest in? A:

      Each investment-linked fund has its own investment objective, asset allocation and risk classification. You should consider all aspects of your financial situation, including risk profile and investment horizon, before making a decision. If you are in any doubt as to which fund to invest, you should consult your insurance adviser.

    • Q: How many funds can I select for investment? A:

      There is no restriction in the number of funds that can be selected, but it is subjected to the prevailing terms implemented to manage the investment accounts.

      Currently a minimum investment of $2,500 is set for each selected fund.

    • Q: Can I switch funds? A:

      Yes, you can switch investment into any of the available, subject to the following terms:

      • The fund switch is done on bid-to-bid basis.
      • Minimum switch amount is the nominal amount of $1,000 each time. For each switch, the amount switched out from an individual fund should not be less than $500, and
      • Remaining cash value of each selected fund under this policy should be at least $2,500

      Depending on the circumstances in the future, we may revise the terms for switching. Sufficient notice will be given to you before any changes take effect.

Unit pricing and allocation

    • Q: What is meaning of forward pricing? A:

      Forward pricing means that the prices of your transacted funds will only be known after the close of each dealing day.

      The price is not available at the time of transaction. This is because many of our investment-linked policy (ILP) funds are well diversified across the world. Due to the time-zone differences, the market value of some global investments is not available immediately.

    • Q: What is the cut-off time used to determine pricing of the units? A:

      For cash policy, all transactions submitted and premiums received by us by 3 pm (Singapore time) each day will be executed based on the unit prices of the same business day. For transactions submitted on a non-business day (i.e. Saturday, Sunday or public holiday), the execution will be based on the prices valued for the following business day.

      For SRS policy, all transactions submitted and received by us by 3.00 pm (Singapore time) each day will be executed based on the unit prices of the same business day. For transactions submitted on a non-business day (i.e. Saturday, Sunday or public holiday), the execution will be based on the prices valued for the following business day.

    • Q: What is the price used for surrendering/switching/top-up of funds? A:

      The offer price is used when you buy or top-up your funds.

      The bid price is used when you sell units, surrender or switch unit from your funds.

    • Q: How are the prices calculated? A:

      When you buy into a fund, you are actually buying into units of the fund. The fund invests your money by buying into stocks, bonds, alternatives or a combination. The total market value of all the investments in the fund (net of charges) is called the Net Asset Value – NAV.

      • The bid price is the net asset value divided by the total number of units of the refund. It is the net asset value per unit of the fund.
      • The offer price is the bid price plus a bid-offer spread, which is 3.5% for our ILP funds. 
    • Q: How do I monitor the fund prices? A:

      Our fund prices are updated daily on our website.

    • Q: How much is the bid-offer spread? A:

      Currently, the bid-offer spread is 3.50%. This is factored into the offer prices of the funds; e.g. Bid Price of Fund A = 2.000

      Offer Price of Fund A = 2.000 × (1 + 3.50%) = 2.070

      The offer prices are applied during unit allocation.

      For single premium investment and top up, the nominal bid-offer spread is 3.0%. This is implemented by allocating premiums using offer price (still calculated as per bid-offer spread of 3.5%) and automatically adding extra 0.5% bonus units, i.e.

       

      Total Units Allocated = (Single / Top-up Premium / Bid Price x (1+3.50%)) x (1+0.5%)

        

    • Q: What is the allocation ratio? A:

      100% of the single premium and top-up premium payments will be allocated, together with the extra 0.5% bonus units.

Fees and charges

    • Q: How much is the policy fee? A:

      A policy fee is deducted from the policy at the beginning of each policy year, paid via unit cancellation at bid price.

      The amount of policy fee is not guaranteed and is subject to revision by giving notice to policyholders. The current policy fee is set as follows:

      First Policy Year Renewal Years
      $0 $50

      Policy fee will be waived for net premium paid of $25,000 or higher.

    • Q: Is the annual management fee same for all investment-linked policy (ILP) funds? A:

      The annual management fee is not the same for all ILP funds. The fee for each fund could be found in the Fund Report.

    • Q: How much is the charge for insurance coverage? A:

      No additional charges will be deducted from your premium. The insurance cover is given to you free.

Partial withdrawal and surrender

    • Q: Can I make partial withdrawal from my investment? A:

      Yes, you can make partial withdrawal from your funds at any time provided that the minimum partial withdrawal amount is $500 each time. There is no limit to the amount of partial withdrawals. However, you need to hold a minimum value of units worth $1,750 under each selected fund or $3,500 in aggregate (across all funds) under the policy.

      Partial withdrawals have the effect of reducing the Minimum Death / total and permanent disability benefit and fund value of the policy.

    • Q: How is the withdrawal value computed? A:

      The withdrawal amount is calculated based on bid prices as follows:

      Withdrawal Amount = Unit × Price

      Where

      • Unit is the number of units withdrawn from selected fund, and
      • Price is the bid price of the fund
    • Q: Will my insurance coverage be reduced as a result of partial withdrawal? A:

      Yes, the benefits payable for death and total and permanent disability would be adjusted.

    • Q: Is there any additional deduction from the surrender proceeds? A:

      No.

    • Q: How much is refunded if I were to cancel the application during free-look? A:

      Upon cancellation during free look, the lower of follow two values will be returned to you and the policy will terminate.

      • Paid premium;
      • Cash value of the policy calculated using offer prices on the date the notice of cancellation is received by us, plus all fees and charges deducted (except medical fees) at policy inception.

      If the policy document was mailed to you, the 14 days Free-Look period will start seven calendar days after we have mailed the policy document.

Policy loan

    • Q: Can I take a policy loan? A:

      Yes, you can take a policy loan (for cash policy only) subjected to the prevailing terms and conditions.  

      The current policy loan amount is up to the lower of the following:

      • 50% of the total cash value of the policy; or
      • 80% of the net investment amount.

      Policy loan interest rate is currently set at 5.5% p.a. This is not guaranteed and subject to revision.

      If at any time the amount of loans and interest exceed the cash value of the policy, all benefits under the policy shall automatically cease.