NTUC new S.A.I.L. (Regular Premium)

NTUC launches a new savings-cum-annuity- its revamped SAIL plan via regular premium mode. The earlier version was a single premium plan.

Essentially, it’s a savings endowment which comes with option to convert into a fixed period annuity at a pre-determined age. Suitable as a retirement savings vehicle.

FOR a 35 year old Male, if he saves $500 per month till age 59, he stands to receive a lump sum of $377,000 at age 65. Net yield is 5.11%p.a.

When he converts the maturity monies into a stream of income, he receives a yearly payout of about $30,000 till age 85. Net yield is 5.07%p.a.

Based on NTUC’s writeup, it is a regular premium with-profits endowment plan that is divided into 2 phases, i.e. an Accumulation Period and a Payout Period.

During the Accumulation Period, it is similar to a limited-premium endowment plan, whereby protection and surrender values grow with bonus declaration. At the end of the Accumulation Period, one can choose to either

1.       redeem the lump sum investment or

2.       convert the lump sum in full or partially, into a stream of payment during the Payout Period for 20 years.

The plan may be attractive to those with medical conditions who prefer to save in a disciplined manner via insurance. For this special group, the benefit payable is reduced to 101% of the actual premiums paid-to-date and accumulated bonus, less any loan or debt (instead of the standard 105%).

Such affected conditions refer to insured suffering from any of the following medical conditions, at the time of application, or within 3 months from the date of issue/reinstatement of the policy:

1. Cancer

2. Heart and/or Heart Valve Conditions

3. Chronic Kidney Disease

4. Stroke and/or Transient Ischaemic Attacks

5. Liver Cirrhosis and/or End Stage Liver Failure

6. Systemic Lupus Erythematosus

7. Terminal Illness

8. Severance or total loss of use of one or both limbs OR total loss of use of one or both eyes

9. Chronic Obstructive Lung Disease and/or End Stage Lung Disease

10. Diabetes

Btw, NTUC is running a promotion where up to $200 worth of shopping vouchers (CapitaMalls or Robinsons) are given as rewards.

Monthly minimum premium is $300. Promotion ends 31 March 2011.