Great Term Review [2021]: A Great Plan to Consider | SFP
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GREAT Term Review: A Great Plan to Consider

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Great Term Review

Great Easten’s GREAT Term is a regular premium term life insurance that guards you against death and terminal illness.

This non-participating term plan also provides additional coverage against total and permanent disability and critical illness through riders. Its convertible option enables you to transform your basic plan into an endowment, whole life, investment-linked policy, or universal life insurance.

Criteria

  • Minimum sum assured of S$50K.
  • Minimum premium payable of S$120 annually.

 

Product Features

Policy Terms

GREAT Term’s coverage period starts from a term of 6 years till the individual reaches 100 ANB.

Premium Payment Terms & Options

The table below shows a sample of the premiums payable for a non-smoking, 35 ANB male who is married with one child.

Plan Coverage Period Sum Assured Premium
GREAT Term with TPD Benefit Till 100 ANB S$500K S$182.80 monthly with a payment term of 65 years
Living Care Rider 40 years S$200K S$2.93 daily
Complete Living Care Rider S$100K

Protection

Death Benefit

Should the insured encounter death, Great Eastern will reimburse the Death Benefit amounting to the basic sum assured or sum of premium payments, whichever is higher. The policy will then cease to be in-force.

The sum of premium payments can be calculated using the following equation:

(Basic premium adjusted based on the sum assured amount x Frequency of premium payment) x Policy age, counting only complete years

Terminal Illness (TI) Benefit 

In the event terminal illness strikes, a one-time payout of the Terminal Illness (TI) Benefit amounting to the Death Benefit value will be paid to the insured. The policy will cease upon the reimbursement of the TI Benefit.

The TI Benefit will be paid when the following conditions are met:

  • Insured is diagnosed with a terminal illness that leads to death in 12 months’ time or less.
  • Diagnosis is definite and by a certified medical examiner. Where necessary, Great Eastern may require the diagnosis to be verified by a medical examiner appointed by them.

 

Additional Features & Benefits

Conversion Privilege

The Conversion Privilege allows you to convert your basic plan and its optional riders entirely or partially into an endowment, whole life, universal life, or investment-linked plan.

Medical underwriting is not required if you make the conversion before 70 ANB. The new plan must be verified to have the same or similar coverage to your existing plan by Great Eastern.

The sum assured of the new policy is capped at the original policy’s sum assured upon conversion. In the case of partial conversion, the sum assured of the original policy will decrease by the conversion amount, subject to the required minimum sum assured.

Premium rates of the new policy will be calculated based on your attained age upon conversion.

Add-on Riders

Total and Permanent Disability (TPD) Benefit

The Total and Permanent (TPD) Benefit is paid when the insured is deemed permanently and irreversibly disabled by a medical practitioner. The table below details the types of TPD covered under the TPD Benefit:

TPD Covered Definition Coverage Expiry
Presumptive TPD Total and permanent incapacity which takes the form of either:

  • Complete loss of vision in both eyes,
  • Incapacity of 2 limbs above or at the ankle or wrist, or,
  • Complete loss of vision in 1 eye and 1 limb above or at the ankle or wrist
Coverage remains valid for the entire policy term.
Other TPD Types Besides Presumptive TPD
  • For individuals who are age 15 or less, TPD has to result in the confinement of the insured to a hospital, home or institution providing constant medical attention and care for a minimum of 6 consecutive months.
  • For individuals above age 15, TPD has to render the insured incapable of performing any job, profession, or activity for income.
TPD must occur before the insured’s policy anniversary where he is 65 ANB.

The TPD Benefit takes the following forms:

  • If the rider sum assured is the same as the basic sum assured, the basic plan’s Death Benefit will be paid and the policy will cease to be in-force.
  • If the rider sum assured is lesser than the basic sum assured, the rider sum assured will be reimbursed as accelerated payment.
  • If the insured is diagnosed with TPD before he turns 1 years old, 20% of the TPD Benefit will be reimbursed in one payout. The rider will then cease to be in-force.

 

The TPD Benefit is capped at S$5M across all Great Eastern policy plans and add-on riders.

Living Care Rider

The Living Care Rider safeguards you against these 53 types of major stage critical illnesses:

  1. Acute Necrohemorrhagic Pancreatitis
  2. Adrenalectomy for Adrenal Adenoma
  3. Alzheimer’s Disease/ Severe Dementia
  4. Angioplasty and Other Invasive Treatment For Coronary Artery
  5. Benign Brain Tumour
  6. Blindness (Irreversible Loss of Sight)
  7. Chronic Auto-Immune Hepatitis
  8. Chronic Relapsing Pancreatitis
  9. Coma
  10. Coronary Artery By-Pass Surgery
  11. Creutzfeld-Jacob Disease
  12. Deafness (Irreversible Loss of Hearing)
  13. Ebola
  14. Elephantiasis
  15. End-Stage Kidney Failure
  16. End-Stage Liver Failure
  17. End-Stage Lung Disease
  18. Fulminant Hepatitis
  1. Heart Attack of Specified Severity
  2. HIV due to Blood Transfusion and Occupationally Acquired HIV
  3. Idiopathic Parkinson’s Disease
  4. Infective Endocarditis
  5. Irreversible Aplastic Anaemia
  6. Irreversible Loss of Speech
  7. Loss of Independent Existence
  8. Major Burns
  9. Major Cancer
  10. Major Head Trauma
  11. Major Organ / Bone Marrow Transplantation
  12. Medullary Cystic Disease
  13. Motor Neurone Disease
  14. Multiple Root Avulsions of Brachial Plexus
  15. Multiple Sclerosis
  16. Muscular Dystrophy
  17. Necrotising Fasciitis
  18. Open Chest Heart Valve Surgery
  19. Open Chest Surgery to Aorta
  1. Other Serious Coronary Artery Disease
  2. Paralysis (Irreversible Loss of use of limbs)
  3. Persistent Vegetative State (Apallic Syndrome)
  4. Poliomyelitis
  5. Primary Pulmonary Hypertension
  6. Progressive Scleroderma
  7. Progressive Supranuclear Palsy
  8. Resection of the whole small intestine (duodenum, jejunum and ileum)
  9. Severe Bacterial Meningitis
  10. Severe Eisenmenger’s Syndrome
  11. Severe Encephalitis
  12. Severe Myasthenia Gravis
  13. Severe Ulcerative Colitis
  14. Stroke with Permanent Neurological Deficit
  15. Surgery for Idiopathic Scoliosis
  16. Systemic Lupus Erythematosus with Lupus Nephritis

Upon diagnosis of any of the above critical illnesses (CI), the insured will receive a CI Benefit.

  • For all claims excluding Angioplasty and Other Invasive Treatment for Coronary Artery:
    • If the rider sum assured is the same as the basic sum assured, the basic plan’s Death Benefit will be paid and the policy will cease to be in-force.
    • If the rider sum assured is lesser than the basic sum assured, the rider sum assured will be reimbursed as accelerated payment.
  • For claims under Angioplasty and Other Invasive Treatment for Coronary Artery:
    • CI Benefit will be 10% of the rider sum assured, capped at S$25K.
    • Upon payment, no claims under Angioplasty and Other Invasive Treatment for Coronary Artery may be made across all Great Eastern policies and riders.
    • The basic sum assured, rider sum assured and policy premiums will be decreased by the CI Benefit.

 

All CI Benefit reimbursements are capped at S$3M across all Great Eastern policies and riders

Complete Living Care Rider

The Complete Living Care Rider protects you against 121 early, intermediate, and major stage CIs.

My Take on GREAT Term 

Great Eastern’s GREAT Term has two main advantages.

Firstly, the CI Illness riders (i.e. Living Care Rider and Complete Living Care Rider) provides highly extensive coverage of up to 121 CIs. This means that you are well protected financially against grave and unexpected illnesses.

Secondly, GREAT Term provides flexibility in allowing you to convert your basic plan into other insurance forms (i.e. endowment, universal life, whole life, or investment-linked policy). Further flexibility is given to policyholders in offering both partial or complete conversion options.

That being said, most term plans offer similar features as well. Furthermore, the GREAT Term also has its downsides.

Firstly, GREAT Term has a higher premium payable as compared to other term life insurance plans offered in the market.

Great Eastern GREAT Term Aviva MyProtector-Term Plan II* Tokio Marine Term Assure (II)* PRUActive Term China Taiping i-Protect* Manulife ManuProtect Term (II) NTUC TermLife Solitaire AIA Secure Flexi Term^
Annual Premium (SGD$) 673 535 545 685 498 637 733 536
Total Premium (SGD$) 26,920 21,400 21,800 27,400 19,920 25,480 29,320 21,440

^Premiums are calculated based on a 40-year coverage period for non-smoking 30 ANB male with a Sum Assured of S$500K for TPD & death

*Has both renewable and convertible options

Secondly, I feel that GREAT Term’s TPD coverage is less extensive in comparison to its competitor plans and is restricted. For instance, other term plans cover you if you have any 3/6 ADLs.

Thirdly, GREAT Term does not offer a renewable option. As such, you will not be able to extend your term life insurance plan when it “expires”, if that’s what you’re looking for.

Of course, this is just a personal opinion and you shouldn’t take my opinion as financial advice. The GREAT Term might be better for someone while there could be other term plans better for someone else.

With so many factors for consideration in purchasing insurance, deciding on the plan that best suits your needs can be an overwhelming process.

Reading our comparison of the best term plans in Singapore might help you make a more informed decision.

Otherwise, fret not, for we got you covered! Our trusted financial advisors are here to assist you with objective comparisons of the term plans available and provide you with the unbiased advice you need to make your selection.

References

https://www.greateasternlife.com/sg/en/personal-insurance/our-products/life-insurance/great-term.html

Product Brochure

Product Summary

Product Summary w/ CI

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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