NTUC Income has just launched a new short-term savings plan, LP Revosave (3 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 (3 Pay 10) works.
1) You save a fixed sum of money to NTUC Income for 3 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.
Sample : Male age 40 years old with Sum Assured $25,000
|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)|
($1250 yearly plus $27,671 upon maturity)
Comparison between SP SAIL and LP Revosave (3 Pay 10)
Single Premium Plan SP SAIL with lump sum savings of $29,820, the maturity amount is $38,577 after 10 years. So if your intention is to withdraw the maturity amount after 10 years, LP Revosave will give better returns. Moreover, you have the flexibility to withdraw 5% of the Sum Assured from the end of second year. SP SAIL does not have this flexibility.