3 Best Lifetime Income Plans in Singapore: Aviva MyLifeIncome VS NTUC Gro Cash Harvest VS NTUC Gro Prime Saver

3 Best Lifetime Income Plans in Singapore: Aviva MyLifeIncome VS NTUC Gro Cash Harvest VS NTUC Gro Prime Saver
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Policy Highlights & Comparisons

 Aviva MyLifeIncome

Features

  1. Aviva MyLifeIncome provides you with income payouts annually for your lifetime which includes attractive benefits such as cash bonus and guaranteed cash benefit which can add up to 6.2% of sum assured.
  2. Guarantees your entire capital which , depending on your chosen premium payment term, can be availed at the end of the accumulation term or earlier.
  3. Provides you with the flexibility of choosing when to receive your yearly income by letting you choose the premium payment term and accumulation period depending on the option you choose.
  4. Provides you with a protection cover that covers death and terminal diseases.
  5. Aviva MyLifeIncome gives you flexibility by stating that they don’t require any medical checkups.
  6. Premium Flexibility: Single premium or payment term options which include 3,5,10 ,15, 20 or 25 years.

What We Like

  1. Early Principal Guarantee- Aviva MyLifeIncome plan guarantees your principal by year 5, which is way earlier compared to other lifetime income plans such as NTUC Gro Cash Harvest and NTUC Gro Prime Saver which guarantee your principal by year 39 and 100 respectively.
  2. Flexible cash payout option – Aviva MyLifeIncome plan provides you with a lot of flexibility by offering you multiple premium term and cash payout options to choose from. This can help you customize the plan according to your and your family’s needs.
  3. Earliest guarantee of principal with cash benefit and accumulation period- This plan also offers you the quickest time to avail your principal guaranteed with cash benefit payout and accumulation by offering you the chance to collect it at the end of your accumulation period or even earlier, depending on your plan.

What We Don’t Like

  1. Smaller Annual Guaranteed Payout – This plan offers you an annual guaranteed payout of $792 which is substantially less than the annual guaranteed payout of 1260 and 1272 offered by NTUC Gro Cash Harvest and NTUC Gro Prime Saver respectively.
  2. No Premium waiver upon TPD – Unlike NTUC Gro Cash Harvest and NTUC Gro Prime Saver, Aviva MyLifeIncome doesn’t waive your premium in the event that you’re suffering from total and permanent disability.
  3. Shorter Payout term –By keeping its payout term at age 99, the payout term offered by this plan is shorter than the payout term offered by NTUC Gro Cash Harvest and NTUC Gro Prime Saver at age 120 and age 100 respectively.

NTUC Gro Cash Harvest

 Features

  1. NTUC Gro Cash Harvest offers you cash payouts which you can collect annually of upto 4.4% of the sum assured after 5 policy years till the time you’re 120.
  2. NTUC Gro Cash Harvest lets you avail a maturity benefit of 120% of all net premium paid.
  3. Option to appoint a secondary insured to continue your policy in the event of the insured’s death.
  4. Regardless of your health conditions, NTUC Gro Cash Harvest guarantees your acceptance to its plan.
  5. In the event that you’re suffering from Total Permanent Disability, NTUC will waive your premiums till the time you’re 70.
  6. You have the option of choosing from flexible premium terms ranging from 5,10,15 or 20 years.
  7. This plan also provides you with a a cash benefit payout from your 5th year onwards.

What We Like 

  1. Premium waiver upon TPD – Unlike Aviva MyLifeIncome, NTUC Gro Cash Harvest waives your premium in the event that you’re suffering from total and permanent disability.
  2. Secondary Life Assured–NTUC Gro Cash Harvest lets you appoint as a secondary insured. The benefit you can get from this is that in the event of your demise (or the demise of the primary policy holder), your family can still take advantage of the wealth accumulation and other benefits of this policy. This ensures that the benefits of this policy doesn’t end with your life and your family can avail its advantages even after your death.
  3. Longer payout term –The payout term offered by this plan is 120 years which is way higher than the payout term offered by NTUC Gro Prime Saver and Aviva MyLifeIncome at 100 and 99 years respectively.

 What We Don’t Like

  1. Lowest surrender value –The surrender value of this policy at 56,220 at end of 35 years and 65,640 at the end of 45 years is substantially lower than the surrender value offered by NTUC Gro Prime Saver and Aviva MyLifeIncome.
  2. Takes long time for guaranteeing principal –By requiring 39 years to guarantee principal, this plan takes almost 8 times as much time as Aviva MyLifeIncome plan to
  3. Takes long time for guaranteeing principal with accumulation – By requiring 25 policy years to guarantee principal with accumulation, NTUC Gro Cash Harvest’s duration for this option is higher than Aviva MyLifeIncome and NTUC Gro Prime Saver.

NTUC Gro Prime Saver

Features

  1. Gives you the option to receive guaranteed cash benefits from your 5th policy year till the time you’re 100.
  2. After first 5 policy years, this plan increases coverage of from 105% to 110% of all net premiums paid which can help you stay protected against death.
  3. In the event that you get total and permanent disability (TPD) before hitting age 70, this plan will waive your premiums.
  4. Gives you the flexibility to pay your premium over 5,10,15 or 20 years.
  5. Regardless of your health condition, NTUC Gro prime Saver guarantees your acceptance to this plan.
  6. Offers you attractive cash benefits at the 20th and 30th policy year as well as a centennial maturity benefit at age 100.

What We Like 

  1. High guaranteed yearly payout with additional benefits –NTUC Gro Prime Saver offers a guaranteed yearly payout of 1272 which is substantially higher than yearly payouts offered by Aviva MyLifeIncome and NTUC Gro Cash Harvest. Moreover, it also offers you attractive cash benefits at the 20th and 30th policy year as well as a centennial maturity benefit at age 100.
  2. High surrender value –This plan offers a surrender value of 77, 594 at the end of year 45 which is way higher than the surrender value offered by Aviva MyLifeIncome and NTUC Gro Cash Harvest.
  3. Premium Waiver Upon TPD – Unlike Aviva MyLifeIncome, NTUC Gro Prime Saver waives your premium in the event that you’re suffering from total and permanent disability.

What We Don’t Like

  1. Long time to guarantee principal –NTUC Gro Prime Saver takes 100 years to guarantee principal. This is 20 times the period taken by Aviva MyLifeIncome and more than double the time taken by NTUC Gro Cash Harvest to guarantee your principal. This could be a major disadvantage for those thinking of getting a policy for the short term.
  2. No Secondary Life Assured option – compared to its other NTUC equivalent – the Gro Cash Harvest –this plan doesn’t give you the option to appoint as a secondary insured which could let your family take advantage of the wealth accumulation and other benefits of this policy in the event of your sudden death. 

Similarities

  1. All plans mentioned here disburse yearly income till life from end of policy year 5.
  2. The guaranteed and non-guaranteed yearly payout rate for all plans is the same @3.25% and @4.75% respectively.
  3. All plans mentioned here provide coverage with principal and 5% guaranteed and non-guaranteed bonus in the event of death or terminal illness.
  4. All plans give you the flexibility of accumulating, re-investing and withdrawing your cash benefit payout.

 Differences 

Insurer Aviva MyLifeIncome NTUC Gro Cash Harvest NTUC Gro Prime Saver
Premium Term Options Single Premium 3, 5, 10, 15, 20 or 25 years 5,10,15 or 20 years 5,10,15 or 20 years
Payout Term Till age 99 Till age 120 Till age 100
Principal Guaranteed with Cash Benefit Payout End of Accumulation Period or earlier 35th – 40th Policy Year At age 100
Principal Guaranteed with Accumulation End of Accumulation Period or earlier 25th  Policy Year 20th – 25th Year
Premium Waiver upon TPD No Yes Yes
Secondary Life Assured NA Yes

Child Before Age 18

Spouse Before Age 65

NA
Cash Payout Options For Single Premium: 4 to 40 years

For 3 years premium payment term:

2 to 40 years

For 5, 10, 15 , 20, 25 years

Premium payment term: 0 to 40 years

Payout from 5th year onwards Payout from 5th year onwards

Returns Comparison 

Insurer Aviva MyLifeIncome NTUC Gro Cash Harvest NTUC Gro Prime Saver
Premium 12,046.70 12,000 12,000
Payout From Year 5 Year 5 Year 5
Guaranteed Yearly Payout 792 1260 1272

3695 (20th& 30th)yr

@3.25% p.a. 1404 1842 1787
@4.75% p.a. 2232 2640 2483
Principal Guaranteed Year 5 Year 39 Year 100
4.75% Acc@25th 128,297 112,455 126,058
4.75% Acc@35th 177,539 191,283 196,605
4.75% Acc@45th 243,241 283,218 291,540
Surrender value @35th 4.75% 66,443 56,220 62,814
Surr@45th 4.75% 68,069 65,640 77,594

Conclusion For Aviva MyLifeIncome VS NTUC Gro Cash Harvest VS NTUC Gro Prime Saver

We hope the analysis helps you in understanding the pros and cons of these 3 mid term savings plans in the market so that you can decide if any of these options meet your savings objectives. All savings plans have their own advantages and disadvantages. We recommend that all individuals choose their savings plans keeping in mind their objectives and liquidity needs to ensure they get the best possible value.

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