Last Updated on May 13, 2022 by Parentology

As parents, we want to give the best to our children, be it protection or education. We also want to consider after they graduate, what are the possible preparations and gifts we can give to them when the time comes. To do that, starting young is crucial as it accumulates and with the power of compounding, it will be a substantial savings by the time the children have grown up.

Here we look at one of the more competitive endowment savings plan which is flexible and helps both parents and children to achieve their life goals with flexible withdrawals.

China Taiping’s legacy endowment savings plan, the i-Cash (III) is an endowment plan with two premium payment terms of 5 and 10 years. It will then mature on the policy holder’s age of 85 years old. Flexible withdrawal is available when cash value is accumulated.

The plan is flexible because there is a guaranteed yearly cashback equivalent to 1% of the basic sum assured available at the end of the premium term. Additionally, there is also a non-guaranteed cash dividend of up to 7.2% of the basic sum assured (details below).

No medical underwriting is required and your cashback can be accumulated and grow with interest should you not require it.

 

Features At a Glance for China Taiping i-Cash (III)

 

Premium Term

Have the option to supplement the premium of either 5 or 10 years according to your preference and budget.

 

Guaranteed Annual Cashback

At 1% of your basic sum assured equivalent, this guaranteed cashback amount is one of the most competitive in the market. Start receiving them at the end of your premium term until age 84, which is one year before the maturity date.

The GYC will be paid starting on the policy anniversary immediately after the end of the premium paying term and on

every policy anniversary thereafter, while the life insured is alive and the policy is in-force. The last GYC will be paid on

the policy anniversary immediately before the maturity date, i.e. at the beginning of the last policy year.

Premium Paying Term	First GYC payable on:
5 years	5th policy anniversary, i.e. beginning of policy year 6
10 years	10th policy anniversary, i.e. beginning of policy year 11

Source: China Taiping

 

Also included is the non-guaranteed cash dividend of up to 7.2% of the basic sum assured, based on the 4.25% projection returns.

Premium Paying Term	Yearly Cash Dividend* payable at the beginning of policy year: 6 – 20 21 – 35 36 onwards
5 Years Premium Paying Term Yearly Cash Dividend* payable at the beginning of policy year:	6 – 20	21 – 35	36 onwards
	3.00%	5.00%	7.20%
10 Years Premium Paying Term Yearly Cash Dividend* payable at the beginning of policy year:	11 – 25	26 – 40	41 onwards
	3.00%	5.00%	7.20%

Source: China Taiping

 

The guaranteed and non-guaranteed cashback will be paid together and you can have the option to choose how to spend it, be it for a holiday, retirement planning or even children’s education.

 

Breakeven 3 Years After Premium Term

Be assured that 3 years after the premium term, the guaranteed portion of the surrender (cash) value will be equivalent to your total annual premiums paid. The guaranteed surrender cash value will also continue to grow and not reduced nor stay level, even when the cashback amount is paid annually.

Very useful feature as it keeps the cashback and the guaranteed amount separately.

 

Maturity Amount at 85 Years old

At age 85, receive a lump sum maturity payout including the guaranteed and non-guaranteed amount.

 

Guaranteed Acceptance Regardless of Health Condition

No medical check-up and underwriting health questions required. This plan is guaranteed acceptance regardless of health condition.

 

How the China Taiping i-Cash (III) Works

 

China Taiping i-Cash (III) is Suitable if You:

• Are looking for regular stream of income and a lump sum maturity benefit to spend as one wishes or to provide as a gift to loved ones
• Are parents who would like to secure a series of income for their young children
• Are parents who want to prepare for children’s education while they are young, and a savings or even retirement when your children gets older.
• Prefer a short premium commitment
• Prefer no medical underwriting upon application.

 

It would however be less suitable if you would like:

• High protection
• Early Critical Illness and Critical Illness coverage
• One-time premium commitment

 

Conclusion for China Taiping i-Cash (III)

Should you want a flexible wealth growth instrument that caters to different financial goals and needs at various life stages, the China Taiping i-Cash III fits in for your retirement usage. You can even use it for a holiday or children’s education.

China Taiping’s i-Cash (III) is one of the more competitive endowment plan suitable for mid to long term financial planning. It breaks even relatively fast (even in the current market), as well as being flexible when it comes to cash withdrawals.

We hope this in-depth analysis helps you in understanding the pros and cons of China Taiping’s i-Cash (III) and also in helping you decide if it meets your savings objectives. All savings plans have their own advantages and disadvantages and it is recommended that you choose one that is within your objectives and liquidity needs to ensure you get the best possible value.

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