Frequently Asked Questions

FlexRetire

Product Coverage

    • Q: What is FlexRetire? A:

      FlexRetire is a regular premium endowment1 policy specially designed for retirement planning.

      1 An endowment policy has a fixed maturity date that combines insurance protection with a savings element. A participating policy is entitled to share in the profits of the participating fund. These profits are distributed via bonus declarations and are payable upon maturity, surrender or when there is a claim.
       

    • Q: What are the benefits payable? A:

      There are two parts to this plan: an Accumulation Period where you save regularly, and a Payout Period where we will pay you a stream of income for a fixed period of 10, 20 or 30 years.

      We will also pay if the Insured dies or becomes Total and Permanently Disabled, in accordance to the terms set out in the Policy Contract.

      We offer guaranteed acceptance for this plan regardless of the insured’s health condition.

Accumulation Period

  • Eligibility and Premium Payment

    • Q: What are the accumulation period and entry age available? A:

      The following table shows the entry age for various accumulation periods and premium payment terms:

      Accumulation period
      (last birthday)
      Minimum entry age
      (last birthday)
      Maximum entry age
      (last birthday)
      Pay 5 years Pay 10 years Pay regularly
      Up to age 55 20 45 40 39
      Up to age 60 50 45 44
      Up to age 65 55 50 49
      Up to age 70 60 55 54

      For ‘Pay regularly’, premiums are payable throughout the accumulation period except the last 5 years.

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

      The minimum premium under each premium payment term and frequency is as follows:

      Premium Payment Frequency Minimum Amount
      5-pay 10-pay and regular pay
      Monthly $400.00 $200.00
      Quarterly $1,188.40 $594.20
      Half-Yearly $2,354.00 $1,177.00
      Yearly $4,615.20 $2,307.60

      The maximum premium allowed is subject to underwriting. Financial Questionnaire needs to be completed for application if the total annual premium payable by policyholder is above $60,000.

    • Q: Can policyholder use SRS or CPF to buy this plan? A: No, this plan can only be bought using cash.
    • Q: Can backdating of policy be done? A: Backdating is not allowed for this plan.
  • Death Benefit during Accumulation Period

    • Q: What is the benefit payable for death during the accumulation period? A:

      Upon death of the insured during the accumulation period, we will pay 105% of all net premiums paid (excluding premium paid on rider) and 100% of bonuses (if any).

      If the death benefit is lower than the prevailing cash value at the time of insured’s death, we will pay the cash value instead.

      The benefit will be paid less any loan or debt. The policy will cease after the benefit is paid.

    • 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 commencement of the policy. The policy will be completely free of all legal effect and we will refund the total premium received without interest.
  • Total and Permanent Disability (TPD) Benefit

    • Q: What is the benefit payable for total and permanent disability (TPD)? A: In the event the insured is diagnosed as totally and permanently disabled before the age of 70 (last birthday), we will pay the benefit as follows:
       
      Time when claim
      event occurs
      Benefit
      During the accumulation period 105% of all net premiums paid, and 100% of terminal bonus.
      During the payout period 105% of all net premiums paid, and 100% of terminal bonus, less all regular
      payments we have paid you.

      However, if the cash value of the policy is more than the benefit payable, we will pay the cash value instead. We will pay this benefit in a lump sum, up to $1 million each year. If the benefit is more than $1 million, we will pay in yearly installments. The policy will cease after the benefit is paid. The maximum aggregate total and permanent disability benefit payable on the insured is S$3.75 million (excluding any bonuses), inclusive of all in forced policies issued by us and by any other insurer.
       
    • Q: Is there any exclusion(s) for TPD Benefit? A:

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

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

      We do not pay if the insured is merely unable to perform the same job as before, or is unable to perform a job due to the limitations of his training, education or experience.

      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.

    • Q: Do I need to pay premium while the TPD Benefit is being paid in installment? A: No, once we begin paying the TPD benefit, your policy will cease immediately and you will not have to pay premiums.
    • Q: When is the definition for TPD? A:

      TPD is defined as the inability to take part in any paid work for the rest of the insured’s life, or total physical loss.

      The insured must be incapable of engaging in any occupation when is he 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 training, education or experience is suited.

      “Total physical loss” refers to:

      1. the total and permanent loss of sight in both eyes;
      2. the loss of, or total and permanent loss of use of, two limbs at or above the wrist or ankle; or
      3. 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.
  • Riders/Supplementary Benefits during Accumulation Period

    • Q: Can riders be included? A: For FlexRetire, the following supplementary benefit riders are available:
      • Dread Disease Premium Waiver
      • Enhanced Payor Premium Waiver
      • Cancer Premium Waiver (GIO)
    • Q: Can I add or remove riders after the policy is in force? A:

      Yes, you can add or remove the Dread Disease Premium Waiver and Enhanced Payor Premium Waiver anytime after the policy is in force. However, adding them after the policy is in force will be subject to a reassessment of your health and financial situation.

      For Cancer Premium Waiver (GIO), it can be removed after the policy is in force. However it cannot be added to basic plan at mid-term.

    • Q: What are Riders/Supplementary Benefits? A: Riders, also known as Supplementary Benefits, can be attached to a basic insurance plan to provide additional protection at lower cost.
  • Cash Value and Bonuses during Accumulation Period

    • Q: Is there any bonus given during the accumulation period? A:

      Terminal bonus, if declared for a policy year, will be payable if any of the following events occurs during the same policy year that the terminal bonus is declared:

      1. Full or partial surrender of this policy;
      2. Death or total and permanent disability of the insured; or
      3. Conversion of cash value to receive regular payment.

      Terminal bonus is not guaranteed.

    • Q: Is there a surrender value during the accumulation period? A:

      There is a cash value on this policy after 2 years of premiums have been paid. For policy with premium term of 5 years, there is a cash value on this policy after 1 year of premiums has been paid.

      Please note that buying a life insurance policy is a long-term commitment. Early termination of the policy usually involves high costs and the cash value payable may be less than the total premiums paid.

  • Is policy loan allowed during the accumulation period?

    • Q: Is policy loan allowed during the accumulation period? A:

      Yes, policy loan is allowed during the accumulation period. The upper limit for loan amount is 95% of the prevailing cash value of the policy, and is subject to revision in future.

      Upon surrender, death or TPD claim, the loan amount and accrued interest will be deducted from the final amount payable.

    • Q: Is there a provision for automatic premium loan during the premium payment term? A:

      Yes, if subsequent premiums are not paid within the grace period and if the policy has acquired sufficient cash value, we will advance an automatic premium loan for this policy to remain in force.

      Upon surrender, death or TPD claim, the loan amount and accrued interest will be deducted from the final amount payable.

    • Q: Is there a provision for grace period during the premium payment term? A: Policyholder is given a grace period of 30 days to pay subsequent premiums after the policy is in forced. During this period, the policy will continue to be in force, but if any benefit becomes payable, the amount of any unpaid premium will be deducted from the benefit accordingly.
    • Q: Is there a provision for paid-up option during the premium payment term? A: No, paid-up option is not available.
  • Options at end of Accumulation Period

    • Q: What are the options available at the end of the accumulation period? A:

      The following options are available:

      1. Convert entire policy to receive monthly retirement income for either 10, 20 or 30 years.
      2. Convert part of the policy to receive monthly retirement income for either 10, 20 or 30 years, subject to a minimum conversion value of $10,000. 
      3. Surrender the entire policy to receive a lump sum payment.

      The conversion value is not guaranteed and may vary according to the future performance of the Life Participating Fund.

Payout Period

  • Insurance Coverage during Payout Period

    • Q: What is the benefit payable for Death during the payout period? A:

      Upon death of the insured during the payout period, we will pay 105% of all net premiums paid (excluding premium paid on rider) and 100% of bonuses (if any), less all monthly regular payment we have paid.

      If the death benefit is lower than the prevailing cash value at the time of insured’s death, we will pay the cash value instead.

      Regular payment accumulated with us and accumulated interest, if any will also be paid out.

      The policy will terminate after the benefit is paid.

    • Q: What is the benefit payable for TPD during the payout period? A:

      Upon diagnosis of the insured with TPD before age 65 (last birthday) during the payout period, we will pay 105% of all net premiums paid (excluding premium paid on rider) and 100% of bonuses (if any), less all monthly regular payment paid.

      If the TPD benefit is lower than the prevailing cash value at the time the insured is diagnosed with TPD, we will pay the cash value instead.

      We will pay this benefit in a lump sum, subject to a maximum payment of S$1 million each year. If the benefit is more than S$1 million, we will pay in yearly instalments, provided that the insured remains in TPD. The maximum aggregate
      TPD benefit payable on the insured is S$3.75 million (excluding any bonuses), inclusive of all in forced policies issued by us and by any other insurer.

      Regular payment accumulated with us and accumulated interest, if any will also be paid out.

      The policy will terminate after the benefit is paid.

  • Payment Stream

    • Q: How long is the payout period? A: The policyholder can select a payout period of 10, 20 or 30 years. The payout period cannot be changed after the end of the accumulation period.
    • Q: Does the policyholder need to decide on the payout period at point of application? A:

      The policyholder needs to select a payout period at the point of application. Before the end of the accumulation period, the policyholder can write in to inform us if he wants to change the payout period.

      Income will be writing to inform policyholder of the conversion value and the projected values for the various payout periods at least 1 month before the end of the accumulation period. Policyholder can then decide on which option to select based on his prevailing financial condition.

  • Policy Loan During Payout Period

    • Q: Is policy loan allowed during the payout period? A: Policy loan is not allowed during the payout period.
  • Retirement Income and Maturity Benefit

    • Q: What are the components of the monthly retirement income? A: Each payment consists of a guaranteed and non-guaranteed amount.
    • Q: What can policyholder do with the monthly retirement income? A:

      Policyholder can exercise any one of the following options:

      1. Receive it as a payout; or
      2. Accumulate with us at the prevailing interest rates, currently at 3.50% p.a. This interest rate is not guaranteed and will be determined by Income. When the policy comes to an end, any regular payment accumulated with us will be paid out.

      The default option is to accumulate the regular payment with us to earn prevailing interest. If the policyholder wants to receive as a payout instead, he can inform us of his choice at least 30 days before the regular payment is due and provide us details of his bank account to facilitate GIRO transfer.

    • Q: What is the frequency of payment during the payout period? A: The regular payment is paid monthly during the payout period. Other payment frequency is not available. The first regular payment will be paid one month after the end of the accumulation period.
    • Q: What is the maturity benefit? A: The maturity bonus is a lump sum payment made to the policyholder when the policy matures at the end of the payout period. The maturity bonus is projected to be 24 times of the final monthly regular payment and is not guaranteed.
    • Q: When does the policy mature? A:

      The policy matures at the end of the payout period.

      At policy maturity, we will pay the following:

      1. A final monthly regular payment.
      2. A non-guaranteed bonus projected to be 24 times of the final monthly regular payment.
      3. Regular payment accumulated with us and accumulated interest, if any.