Last Updated on July 27, 2023 by Parentology
In the journey of parenthood, safeguarding your child’s future is a top priority. This includes ensuring their educational aspirations aren’t hampered due to unforeseen financial circumstances. Enter the Singlife Flexi Life Income endowment plan – an innovative financial solution that provides a lifetime of yearly payouts. These payouts can serve as a secure and reliable funding source for your child’s education. With the plan reaching break-even in just 3 to 5 years and potential for reinvestment, it’s a strategically smart step for parents who aim to build a robust financial nest for their children’s academic journey. Let’s explore more about this plan and how it can contribute to shaping a bright educational future for your child.
The Singlife Flexi Life Income endowment plan is designed to provide a consistent flow of annual payouts, forming a safety net for unexpected rainy days and mitigating times of financial uncertainty.
Remarkably, this plan reaches its break-even point within a swift span of 3 to 5 years. Further enhancing its appeal, if you opt not to withdraw your yearly payouts, the plan continues to reinvest these funds, promoting further financial growth over time. Tailored to young professionals and working adults, this plan provides a valuable tool for strategic financial planning.
Features At a Glance for Singlife Flexi Life Income
Supplementing Premiums
You’re provided with the flexibility to bolster your premiums using either cash or the Supplementary Retirement Scheme (SRS) funds.
Choice of Premium Payment Modes
Depending on your financial goals and circumstances, you can opt for a Single Premium mode or regular premium modes that span across 3, 5, 10, 15, 20, or 25 years.
Guaranteed Annual Income
As a policyholder, you can enjoy a guaranteed annual income as long as your policy remains active.
Choice of Premium Mode
Your premium payments can be catered to your preference, offering you the flexibility to pay via cash or your Supplementary Retirement Scheme (SRS) funds.
Yearly Income (Guaranteed + Non-Guaranteed Cash Benefit) Up to 5.20% of the Sum Assured
Under this plan, you stand to receive an annual income of up to 5.2% of your sum assured, enabling you to enjoy the fruits of your investment without lifting a finger. This income is guaranteed as long as you maintain your policy with Singlife. The annual income is a combination of a 2.2% guaranteed cash benefit and an additional cash bonus that can reach up to 3% of the sum assured.
As long as the policyholder is alive and the policy is active, an Annual Income will be disbursed at the conclusion of each policy year from the end of the Accumulation Phase, subsequent to any owed amount being deducted by Singapore Life Ltd. The Annual Income is made up of a 2.2% Guaranteed Cash Benefit and a Cash Bonus, which is not guaranteed, but is calculated at either a 3% or 0.9% rate of the sum assured. These Cash Bonus rates are derived from hypothetical investment returns of 4.25% and 3% per annum, as displayed in the Policy Illustration. More details can be found in the Policy Illustration. Bear in mind that the Accumulation Phase is the period that follows the end of the premium payment term and leads up to the first disbursement of Annual Income.
The Guaranteed Cash Benefit, Cash Bonus (not guaranteed), and Booster Bonus (also not guaranteed) are payable and calculated based on the Sum Assured, which shouldn’t be conflated with the Death Benefit.
Option to Select Start Date for Your Cash Payouts, Or Let Them Accumulate
This plan hands you the liberty to choose the length of your premium payments and accumulation period. These choices will influence when you commence receiving your Annual Income payouts. Furthermore, you can opt to make your premium payments using either cash or funds from the Supplementary Retirement Scheme (SRS), depending on what suits your financial planning.
The commencement of your payouts will be after the conclusion of both the Premium Payment Term and the Accumulation Period.
Escalating Payout Feature (Booster Bonus)
A Booster Bonus amounting to 0.35% of the sum assured will be dispensed annually from the policy anniversary subsequent to either when the Life Assured reaches the age of 60 (Age Next Birthday) or the conclusion of the 20th policy year after the Accumulation Period ends, depending on which happens later. This can sum up to 5.95% of your assured sum, inclusive of the yearly income mentioned above.
Incremental Gains Over Time
Either commencing 20 years post the initial income payout or when the policyholder achieves the age of 60, based on whichever is later, there will be an increment in their payouts by 0.5% of their sum assured.
The Booster Bonus, which is non-guaranteed, can either be 0.5%* or 0.3%* of the Sum Assured. It’s paid annually, starting from the Policy Anniversary immediately succeeding either a) the date on which the Life Assured attains age 60; or b) the end of the 20th policy year after the Accumulation Period ends, as long as the Life Assured is alive and the policy is active. The Booster Bonus rates aforementioned are reliant on the illustrated investment returns of 4.25% and 3% per annum, respectively, as shown in the Policy Illustration. For additional details, please refer to the Policy Illustration.
Capital Protection Guaranteed at 100%
You can have peace of mind knowing that your invested capital in this plan is safeguarded, ensuring its full availability when your yearly income payouts are due to commence. The full amount you’ve invested, your principal, is assured to be intact by the time your annual income payouts begin.
The calculation of the Guaranteed Cash Surrender Value is as follows:
The total premiums paid for the main plan at the termination of the Accumulation Period or at the conclusion of the respective periods:
- 8th policy year for policies with Single Premium payment term;
- 13th policy year for policies with a 3-year premium payment term;
- 15th policy year for policies with 5, 10, or 15 years premium payment terms; or
- 25th policy year for policies with 20 or 25 years premium payment term; whichever comes earlier, all subject to the terms and conditions of the policy.
In addition, the Guaranteed Cash Surrender Value will experience a compounded growth of 0.25% per annum, commencing from the 5th policy year following the end of the Accumulation Period.
Protection Coverage
The plan provides coverage in the event of Death and Terminal Illness.
Guaranteed Issuance Option
The plan requires no medical questionnaire or check-ups.
Options for Accumulation Period
For Single Premium plans, you can choose an Accumulation Period ranging from 4 to 20 years. If your premium term is 3 years, you can select an Accumulation Period between 2 to 20 years. For premium terms of 5, 10, 15, 20, or 25 years, your Accumulation Period can range from 0 to 20 years. The Accumulation Period is the time frame from the conclusion of the premium payment term up to the initiation of the first Yearly Income payment. Essentially, it’s the period during which the Insurer accumulates and grows your payout before it’s disbursed.
Riders
The policy also includes several riders to enhance your policy benefits. (All these benefits apply if you’re the policy holder or life assured)
Easy Payer Premium Waiver (GIO) – This rider ensures your premium is waived in the event of death, terminal illness, or total and permanent disability of either of the two lives assured.
EasyTerm (GIO) – Offers a lump-sum cash payment, up to 5 times the annual premium of your basic plan, in the unfortunate occurrence of your death, terminal illness, or total and permanent disability.
Cancer Premium Waiver II (GIO) – In the unfortunate event you’re diagnosed with major cancers, this rider takes care of waiving your future premiums.
How Singlife Flexi Life Income II Works
The Singlife Flexi Life Income II is a Perfect Choice for Parents who:
Desire Flexible Premium and Withdrawal Terms
As parents, you’re always on the lookout for flexible financial solutions. This endowment plan offers you varying premium terms, allowing you to align your financial obligations with your budget.
Look for a Low-Risk Investment
When it comes to your child’s education, you want a financial instrument that’s low risk yet guarantees lifetime payouts. This plan provides exactly that stability you need for your child’s educational fund.
Seek Guaranteed Life Income
Knowing that your capital is safe and secure is crucial. This plan guarantees your total premiums paid at the end of the selected accumulation period, ensuring your money grows steadily for your child’s academic future.
Desire Consistent Income Stream
Whether it’s for yearly school fees or related educational costs, a stable income stream can help ease financial stress. This plan promises a steady flow of guaranteed income, supplemented with non-guaranteed bonuses, creating a reliable fund for your child’s education.
Appreciate a Hassle-Free Application Process
As a busy parent, you’ll appreciate a straightforward and convenient application process. With this plan, there’s no medical underwriting needed, making it easier for you to secure your child’s educational future.
Need Stability in Premiums
Budgeting for a child’s education is easier when premiums are consistent. With this plan, rest assured that your premiums will remain stable, offering you peace of mind and easier financial planning.
Bottomline
Singlife Flexi Life Income II endowment plan offers a blend of guaranteed income and flexible premium options, tailored to support the long-term financial planning for your child’s education. However, each family’s financial needs and goals are unique.
While the benefits of this plan are considerable, it’s important to understand that certain expectations, such as high returns above 10% or immediate capital break-even, might not be met with this specific plan. Hence, connecting with a financial advisor can provide a clearer understanding of this plan in relation to your specific financial situation.
Our financial advisors are at your service, ready to guide you towards making the best decisions for your family’s financial future.
Reach out to us today to start this pivotal conversation by filling in the form below and our advisors will get in touch soonest.
