The NTUC Income Gro Power Saver Pro is a participating endowment plan that offers savings and insurance benefits. This policy has a premium payment term of 3 years and a policy term of 12 years. Premiums can be paid monthly, quarterly, half-yearly, or yearly.

One of the key features of this policy is the Premium Privilege. After paying premiums for at least 3 years, policyholders are not required to make any further premium payments for the remaining 9 years of the policy. However, the policy will still continue, and all benefits will be intact.

In terms of protection, the NTUC Income Gro Power Saver Pro offers a death benefit, a terminal illness benefit, and a total and permanent disability (TPD) premium waiver benefit. The death benefit is the higher of 105% of all paid premiums plus any bonuses earned or the policy surrender value. The terminal illness benefit is the higher of 105% of all premiums paid minus applicable charges and any bonuses earned or the policy surrender value. The TPD premium waiver benefit waives further premium payments if the insured becomes totally and permanently disabled before the age of 70.

At maturity, policyholders will receive the maturity benefit, which is the higher of 100% of the sum assured and bonuses or 100% of all net premiums paid and bonuses. The NTUC Income Gro Power Saver Pro also offers a capital guarantee, ensuring that policyholders will receive at least the total premiums paid during the policy period.

Bonuses are another feature of this policy. There are two types of bonuses that policyholders can earn: reversionary bonuses and terminal bonuses. Reversionary bonuses are added to the policy each year and are calculated as a percentage of the basic sum assured and any bonuses received in previous years. These bonuses are guaranteed and can enhance the cash value of the policy. Terminal bonuses may be paid out when a claim is made, the policy matures, or the policy is surrendered. These bonuses are additional amounts provided on top of other benefits.

Policyholders also have the option to add the Cancer Premium Waiver (GIO) rider to their policy, which provides a waiver of future premiums in the event of a diagnosis of any major type of cancer.

The NTUC Income Gro Power Saver Pro has a strategic asset allocation that aims to closely match the target allocation for the entire fund. The fixed-income portion of the portfolio includes government and corporate bonds. The fund managers have the flexibility to adjust the investment mix to maximize returns and manage risks effectively.

The return on investment for this participating fund can be influenced by various factors, such as changes in interest rates, inflation, market conditions, and the overall performance of businesses and industries. The bonuses policyholders receive may be affected by these factors. The historical investment rates for this fund show a decline from 9.14% to -8.73% between 2020 and 2022. However, the investment returns have been positive when averaged over the past 3, 5, and 10 years.

The total expense ratio of the participating fund covers the costs associated with managing the fund. If the fund’s expenses are higher than expected, it can impact the non-guaranteed benefits policyholders may receive. The past years’ total expense ratios for this fund have been relatively low and consistent.

The NTUC Income Gro Power Saver Pro does not charge any additional fees and charges on top of the premiums paid. However, the participating fund incurs fees and charges to cover operating costs. These costs are covered by the fund and do not directly impact policyholders.

To illustrate how the NTUC Income Gro Power Saver Pro works, a hypothetical scenario is provided. Mr. Rice, a 40-year-old policyholder, pays an annual premium of $20,000 for the first 3 years. After these 3 years, he no longer needs to pay any more premiums for the remaining 9 years of the policy. At maturity, he receives a lump sum maturity benefit of $82,174, which includes non-guaranteed bonuses and the guaranteed maturity benefit.

In summary, the NTUC Income Gro Power Saver Pro is a participating endowment plan that offers savings and insurance benefits. It provides coverage against death, terminal illness, and total and permanent disability. Premium payments can be waived after 3 years, and policyholders can receive a lump sum maturity benefit at the end of the policy term. The policy also offers a capital guarantee and the option to add the Cancer Premium Waiver (GIO) rider. The fund’s historical investment rates and total expense ratio are important factors to consider.


Benjamin Low
Benjamin Low

Benjamin is known as The Passive Income Guy. He has helped hundreds of people to build passive income. He is also a member of the Million Dollar Round Table, and Certified Financial Planner™ (CFP®) and Certified Private Banker (CPB).

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