Last Updated on August 22, 2024 by Tree of Wealth

Introduction: The Importance of Smart Financial Planning

In today’s world, managing your finances wisely is more crucial than ever. With the rising cost of living and inflation continuing to chip away at the value of cash savings, especially in Singapore, securing your financial future has become a top priority for many. According to recent reports, core inflation rates are expected to hover between 2.5% and 3.5% in 2024, putting even more pressure on individuals and families to ensure their money is working harder for them.

Amid these economic challenges, it’s not just about saving money; it’s about growing and protecting it. One of the ways to counter the effects of inflation is by choosing the right financial products that offer a balance of security and returns. That’s where insurance savings plans like Gro Cash Plus come in.

This plan offers more than just a place to park your money—it provides guaranteed capital protection, regular cash payouts, and the ability to accumulate wealth over time. With uncertainties in the global economy, having a plan that assures both protection and growth can be a cornerstone of your financial planning.

In this article, we’ll dive deeper into how Gro Cash Plus works, its benefits, and how it can help you achieve long-term financial security while adapting to life’s ever-changing circumstances.

2. What is Gro Cash Plus? Guaranteed 3rd Year Onwards

Gro Cash Plus is an insurance savings plan designed to help you grow and protect your wealth while ensuring a steady stream of income throughout your life. At its core, this plan combines the stability of capital guarantees with the potential for long-term wealth accumulation, making it an attractive option for individuals looking for both security and growth in their financial planning.

One of the key features of Gro Cash Plus is its guaranteed capital, which means that from the end of the 3rd policy year onwards, the premiums you’ve paid are fully protected. This provides peace of mind, knowing that your investment is safe from loss, regardless of market fluctuations or economic downturns.

This plan is unique in its long-term nature—it continues up until the insured reaches the age of 120, ensuring that coverage and benefits last for a lifetime. Starting from the end of the 3rd policy year, Gro Cash Plus begins to provide regular cash payouts, which can be as high as 6.59% of the sum assured, depending on your entry age. These payouts continue annually as long as the policy is active and the insured is alive, offering a reliable income stream that can be used however you see fit.

Whether you choose to reinvest these payouts for potentially higher returns or use them to fund your retirement or other financial needs, Gro Cash Plus offers the flexibility to adapt to your financial goals. Additionally, the plan includes important protection benefits, such as coverage for terminal illness and death, ensuring that you and your loved ones are financially supported in times of need.

With Gro Cash Plus, you’re not just saving—you’re building a financial foundation that will last a lifetime.

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3. Key Benefits of Gro Cash Plus

The Gro Cash Plus plan is packed with several features that make it an appealing option for anyone looking to secure their financial future. Here are the key benefits that set this insurance savings plan apart:

1. Lifetime of Cash Payouts

One of the standout benefits of Gro Cash Plus is its ability to provide a lifetime of cash payouts. Starting from the end of the 3rd policy year, you can receive yearly cash payouts of up to 6.59% of the sum assured. These payouts continue as long as the policy is in force and the insured is alive, providing a consistent and reliable income stream. Depending on your needs, you can choose to receive these payouts or accumulate them with Income Insurance at a non-guaranteed interest rate for potentially higher returns. This flexibility makes the plan adaptable to various life stages and financial goals.

2. Guaranteed Capital Protection

With Gro Cash Plus, your capital is fully protected from the end of the 3rd policy year. This guaranteed capital protection ensures that the total premiums you’ve paid (excluding any premiums on riders) are safeguarded, no matter what happens in the markets or economy. For those seeking financial security, this feature offers peace of mind by ensuring that your hard-earned savings remain intact, giving you the confidence to plan ahead.

3. Wealth Continuity with Secondary Insured Option

Gro Cash Plus includes a unique secondary insured option, which allows the policy to continue even after the death of the original insured. By appointing a secondary insured (such as a spouse or child), you ensure that the policy’s benefits can continue uninterrupted for the remaining term. This feature allows you to extend your legacy and protect your family’s financial future by providing them with continued coverage and potential cash payouts after you’re gone.

4. Protection Features: Terminal Illness and Death Coverage

The plan also includes essential protection features. In the unfortunate event that the insured becomes terminally ill or passes away during the policy term, Gro Cash Plus provides a payout that includes 105% of all net premiums paid or the guaranteed cash value, plus a terminal bonus. This payout ensures that your family is financially supported during difficult times, giving you and your loved ones additional peace of mind.

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4. Flexibility and Customization Options

Gro Cash Plus offers a range of flexible features that allow policyholders to tailor the plan to their specific needs and adapt it as their financial situation evolves. These customization options provide added value, ensuring that the plan remains relevant throughout different life stages. Here’s how Gro Cash Plus provides flexibility:

1. Cash Payout Options

One of the most flexible aspects of Gro Cash Plus is its cash payout options. Once your policy reaches the end of its 3rd year, you can start receiving regular cash payouts. These payouts provide a steady income stream, but you have the choice of what to do with them:

• Withdraw the Payouts: You can use the yearly cash payouts to support your daily expenses, supplement your retirement income, or even fund short-term goals such as vacations or home renovations.
• Accumulate for Higher Returns: If you don’t need the cash immediately, you can opt to accumulate the payouts with Income Insurance. This allows your money to continue growing at a non-guaranteed interest rate, potentially leading to higher returns over time. This option is ideal for those who want to build a larger nest egg for the future.

This flexibility ensures that the plan works for you, whether you need immediate cash flow or are focused on long-term wealth accumulation.

2. Secondary Insured Feature

One of the standout features of Gro Cash Plus is the secondary insured option. This feature allows you to appoint a secondary insured (such as a spouse or child) who will take over the policy in the event of your passing. By doing so, the policy continues for the remainder of the term, and your loved ones continue to benefit from the cash payouts and coverage that the plan offers.

This feature ensures wealth continuity and protection for your family, allowing you to leave a financial legacy that continues to support your loved ones even after you’re gone. The secondary insured option provides peace of mind, knowing that the benefits of your policy will not end abruptly but will be passed on to safeguard your family’s financial well-being.

3. Cancer Premium Waiver Rider

For added peace of mind, Gro Cash Plus offers the Cancer Premium Waiver Rider, which can be attached to your policy. This rider waives future premium payments if the insured is diagnosed with a major cancer during the rider’s term. This feature allows policyholders to maintain their Gro Cash Plus plan without the burden of continuing to pay premiums during a difficult time. It offers additional protection, ensuring that your financial plan remains intact even when facing serious health challenges.

This rider is particularly beneficial for those who are concerned about the rising incidence of cancer and want to ensure their policy stays in force without interruption, providing crucial support when it’s needed the most.

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5. How Gro Cash Plus Supports Retirement and Legacy Planning

Gro Cash Plus is designed not just as an insurance savings plan but as a comprehensive financial tool that supports long-term financial goals, retirement planning, and the ability to leave a lasting legacy for future generations. Through its unique features, it allows you to build a secure financial foundation while providing the flexibility to enjoy life’s milestones. Let’s take a closer look at how this plan can support your retirement and legacy planning.

Payouts for Different Life Stages

Gro Cash Plus is versatile enough to support a wide variety of life stages, making it a valuable addition to any financial plan. Here’s how the payouts can be utilized throughout different phases of life:

• During Working Years: As you accumulate cash payouts, you can choose to reinvest them to grow your wealth or use them to fund significant life goals such as buying property, paying for your child’s education, or taking that dream vacation.
• During Retirement: Once you reach retirement age, you can use the yearly cash payouts to supplement your retirement income. This provides a steady stream of income that can cover everyday expenses, healthcare costs, or fund leisure activities without having to dip into your savings.
• For Legacy Planning: The secondary insured option ensures that your financial legacy continues after your passing. Whether it’s ensuring your spouse or children receive continued benefits or leaving behind a significant sum for your heirs, Gro Cash Plus helps you extend your impact beyond your lifetime.

Gro Cash Plus is more than just an insurance plan—it’s a comprehensive financial tool that adapts to your life’s changing needs while offering the security and flexibility needed to support your long-term financial goals and legacy planning.

6. Inflation Protection and Wealth Accumulation

In an environment where inflation erodes the purchasing power of your savings, it’s crucial to have financial products that not only protect your capital but also offer the potential for growth. Gro Cash Plus is designed to help hedge against inflation by providing consistent payouts and wealth accumulation through bonus options, making it a superior alternative to traditional savings vehicles.

Hedging Against Inflation

One of the key benefits of Gro Cash Plus is its ability to provide regular cash payouts from the end of the 3rd policy year onward. These payouts, which can amount to up to 6.59% of the sum assured, offer a consistent stream of income that can help offset the impact of rising living costs. While inflation might reduce the value of money over time, the plan’s payouts ensure that you still receive a reliable income, giving you a cushion against the effects of inflation.

Additionally, Gro Cash Plus includes bonus options that allow for further wealth accumulation. The plan participates in the Life Participating Fund, meaning it shares in the profits and losses of the fund. When the fund performs well, you may receive a non-guaranteed cash bonus on top of your yearly cash benefit. These bonuses, though not guaranteed, have the potential to significantly enhance your returns, further protecting your wealth from being eroded by inflation.

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Wealth Accumulation: Beyond Just Saving

While traditional savings accounts and fixed deposits offer safety, their returns often fail to keep pace with inflation. Most savings accounts provide minimal interest rates, and even fixed deposits, which may offer slightly higher rates, are still typically lower than inflation. This means that over time, the real value of your money in these accounts decreases.

Gro Cash Plus, on the other hand, offers both guaranteed capital protection and the opportunity for higher returns through its cash payouts and bonuses. Unlike a standard savings account, where your money sits stagnant with little growth potential, Gro Cash Plus provides consistent payouts that can be reinvested to accumulate even more wealth. Moreover, the potential for additional bonuses means your returns are not capped at a fixed rate.

For example, while a fixed deposit might offer a set interest rate of 1-2%, Gro Cash Plus offers the potential to earn much more through both guaranteed payouts and non-guaranteed bonuses. The ability to accumulate payouts at a non-guaranteed interest rate also adds a layer of growth that traditional savings options do not provide. This makes Gro Cash Plus a more dynamic solution for those looking to outpace inflation while maintaining financial security.

The Advantage Over Traditional Savings and Fixed Deposits

• Guaranteed Capital Protection: Unlike fixed deposits, which can tie up your money with penalties for early withdrawal, Gro Cash Plus guarantees your capital from the end of the 3rd policy year, giving you flexibility without the risk of losing your initial investment.
• Higher Potential Returns: Traditional savings accounts and fixed deposits typically offer low returns that may not keep pace with inflation. In contrast, Gro Cash Plus provides higher potential returns through a combination of guaranteed payouts and non-guaranteed bonuses.
• Consistent Income: With traditional savings, you must withdraw funds to use them, potentially reducing your balance over time. Gro Cash Plus ensures a steady income stream through regular payouts, preserving your capital while providing financial support.

By combining the security of guaranteed capital with the potential for wealth growth through bonuses and payouts, Gro Cash Plus stands out as a powerful financial tool that helps you accumulate wealth and protect against inflation. It offers an ideal balance of security and growth, making it an attractive option for those seeking more than just the safety of a traditional savings account or fixed deposit.

How Gro Cash Plus Works

However, should James pass away at age 70, the policy will pay out $96,444⁸,¹², and the policy terminates thereafter. The policy
would have provided an illustrated total payout of $295,834¹², which is 3.28 times the premiums paid.

Diagram is not drawn to scale. The figures are rounded to the nearest dollar and are used for illustrative purposes only.
The non-guaranteed figures above are based on the assumption that the Life Participating Fund earns a long-term average
return of 4.25% per annum.

Should the long-term average return be 3.00% per annum, the illustrated yearly cash payout for Mr Lim at ages 48, 49, and
50 to 120 would be $920⁵,¹⁴, $1,775⁵,¹⁴ and $2,089⁵,¹⁴, respectively. The illustrated withdrawal amount for Mr Lim’s luxury
around-the-world cruise trip at age 64 would be $38,235¹⁴, and the illustrated yearly cash payout for Mr Lim at age 65 would be
$2,089⁵,¹⁴. Should James pass away at age 70, the policy would have paid out $95,475⁸,¹⁴, providing an illustrated total payout
of $219,359¹⁴. If James survives to the end of the policy term, the maturity benefit¹³ would be $91,407¹⁴, and the policy would
have paid out an illustrated total payout of $246,626¹⁴.

– source: Income

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7. Considerations Before Choosing Gro Cash Plus

While Gro Cash Plus offers numerous benefits, it’s important to carefully consider some key factors before committing to this plan. As with any financial product, understanding both the potential risks and the terms of the policy is essential to making an informed decision.

1. Non-Guaranteed Bonuses and Payout Variability

One of the appealing features of Gro Cash Plus is the potential for non-guaranteed bonuses. These bonuses are linked to the performance of the Life Participating Fund, meaning that in years where the fund performs well, policyholders may receive additional cash payouts. However, it’s crucial to recognize that these bonuses are not guaranteed and can vary depending on market conditions and the fund’s overall performance.

• Potential Risk: If the fund underperforms, the bonus payouts may be lower than expected or may not be paid at all. This could reduce the overall returns you receive from the plan. Therefore, while the guaranteed aspects of Gro Cash Plus provide security, the non-guaranteed bonuses introduce an element of uncertainty.

It’s essential to take this variability into account when planning your long-term financial strategy. Don’t rely solely on potential bonuses for critical expenses or goals, as they are subject to change based on market conditions.

2. Policy Conditions and Payout Adjustments

Gro Cash Plus also comes with specific policy conditions that may impact your payouts. For example, certain events, such as policy loans or partial surrenders, can reduce your sum assured and therefore lower the amount of your future payouts. It’s important to fully understand the terms and conditions outlined in the policy document to avoid any surprises that could affect your financial planning.

• Potential Risk: If you take a policy loan or partially surrender your policy, your payouts may be reduced, and in some cases, the policy could even lapse if the loan exceeds the cash value. These conditions emphasize the need for careful management of the policy over its lifetime.

Make sure to review these conditions closely and consult with a financial advisor to fully understand how they may impact your policy performance.

3. Long-Term Commitment

Gro Cash Plus is a long-term commitment, designed to provide benefits over several decades. To fully reap the rewards of this plan, you need to be prepared to keep the policy active for the long haul. This means ensuring that you can consistently meet the premium payments and that the plan aligns with your long-term financial goals.

• Potential Risk: If you surrender the policy prematurely, the cash value you receive may be significantly less than the premiums you’ve paid. In addition, early termination could result in a loss of the guaranteed capital protection and future cash payouts.

Given the long-term nature of Gro Cash Plus, it’s vital to assess your financial stability and commitment before opting into this plan. Ensure that you’re comfortable with the premium schedule and have a strategy for maintaining the policy even during financial downturns.

4. Consulting a Financial Advisor

Finally, it’s important to recognize that while Gro Cash Plus offers many advantages, it may not be suitable for everyone. Your individual financial situation, goals, and risk tolerance should be carefully considered before deciding on this plan. This is where consulting a qualified financial advisor becomes essential.

• Importance: A financial advisor can help assess whether Gro Cash Plus fits into your overall financial strategy, taking into account your current needs, future goals, and risk appetite. They can also provide clarity on the policy terms and assist you in making an informed decision that aligns with your long-term objectives.

Before making any commitments, it’s highly recommended that you speak with an advisor to ensure that Gro Cash Plus is the right fit for your financial plan.

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Is Gro Cash Plus Right for You?

Gro Cash Plus offers a compelling blend of capital security, regular income, and protection against life’s uncertainties, making it a versatile option for anyone looking to safeguard their financial future while enjoying the flexibility to adapt the plan to their needs. Whether you’re preparing for retirement, planning for your family’s future, or simply seeking a reliable way to grow and protect your wealth, Gro Cash Plus presents several key advantages.

The plan’s guaranteed capital protection from the end of the 3rd policy year ensures that your hard-earned savings are secure, while the lifetime of cash payouts provides a consistent income stream that can be used to support your lifestyle or reinvest for greater returns. The secondary insured feature allows for wealth continuity, ensuring your loved ones continue to benefit from the policy even after your passing.

Additionally, with options like the Cancer Premium Waiver Rider and the flexibility to accumulate or withdraw cash payouts, Gro Cash Plus offers a level of customization that can suit various life stages and financial goals.

However, it’s important to remember that this plan also requires a long-term commitment, and the non-guaranteed bonuses may fluctuate based on the performance of the Life Participating Fund. For those who prioritize stability and are comfortable with the long-term nature of the plan, Gro Cash Plus could be an excellent addition to your financial portfolio.

If you’re looking for a way to combine insurance protection with wealth accumulation, and want the peace of mind that comes with guaranteed capital and regular payouts, Gro Cash Plus may be the right choice for you. As always, consider consulting with a financial advisor to ensure that this plan aligns with your unique financial goals and needs.

What Next?

If you’re ready to take the next step in securing your financial future or simply want to learn more about how Gro Cash Plus can benefit you, it’s essential to get personalized advice tailored to your unique needs. A qualified financial advisor can help you assess whether this plan aligns with your goals and guide you through the details of how it works.

Don’t wait to start planning for your future. Contact us today for more information or to schedule a consultation with an advisor:

• Speak to a Financial Advisor: Fill in the form below to connect with a licensed financial advisor who can provide customized guidance.
• Learn More: Visit our Endowment resource page to explore additional information and resources about the plan.
• Have Questions?: Feel free to reach out to us at [email address] or call us at [phone number] for any inquiries or to set up a consultation.

Start your journey toward financial security with Gro Cash Plus—because your future deserves the best plan today.