Income launches LP Revosave (5 pay 10), a short-term savings plan that allows you to withdraw cashback

NTUC Income has just launched a new short-term sav­ings plan, LP Revosave (5 pay 10) with the fea­ture of allow­ing you to with­draw cash­back (5% of Sum Assured) from the end of 2nd year onwards.

This plan provides a very good altern­at­ive to sav­ings in a bank. Not only it offers bet­ter interest rate, it provides pro­tec­tion against death, Total per­man­ent Dis­ab­il­ity (Lost of sight, two legs etc.) regard­less of your cur­rent health. It is 100% guar­an­tee to be accep­ted. You will be covered for 105% of the premi­um paid-to-date through­out the term.

This is how LP Revosave (5 Pay 10) works.

1. You save a fixed sum of money to NTUC Income for 5 years.
2. At the end of second year, NTUC Income will return part of the premi­um back (called cash­back) to you. You can choose to:

(a) Spend it.
(b) Save with us at cur­rent 3.5% per annum interest in depos­it account issued by Income

3. At any point in time, you can with­draw the money from the Depos­it account.

The policy will mature in 10 years’ time. An example for a Male age 40 years old with Sum Assured $23,850 is as shown in the table below:

Pay­ment Term Monthly Sav­ings Yearly Premi­um Yearly Cash­back (From 2nd year onwards) Total Premi­um Paid Total Cash upon matur­ity (Non-with­draw­al) Total Cash upon matur­ity (With yearly with­draw­al)
5 years $500 $5769 $1,192.50 $28,845 $36,179 $34,547
($1,192.50 yearly plus $25,007 upon matur­ity)