10Y Maxgrowth Enhanced endowment- worth it?
No. 😂
Bought this in 2015 (age 23) as I wanted to provide myself with some form of insurance coverage (in the event I leave my company) + some form of wealth accumulation feature if it lives through to contract maturity. Was introduced by OCBC bank (🚩)- Maxgrowth Enhanced from Great Eastern. Back then, the “illustrated maturity value” was nearly $75k (uploaded original doc, see last pic) and the minimum guaranteed is around $53.7k and non-guaranteed was basically the difference. Fast forward 10 years, the net amount received was $66k. 1.07% annualized growth last 10 years. 🥲
How it works:
- Paid $12k yearly premium for first 5 years and nothing for the next 5 years. In return, I get coverage for TPD, death and TI.
Others who are equally disappointed (can google it quite easily): https://seedly.sg/posts/great-eastern-maxgrowth-enhanced-endowment-more-infos/
On the other hand, I bought 15y endowment Pruflexi when I was in uni. Uni should ban them at the campus 🤣 Still paying $104 each month… matures in 2029 and projected maturity is $21k. Sigh 😮💨
Looking back, I will never buy endowment nor life insurance (low coverage, bad maturity value).
Having held the Maxgrowth Enhanced plan for a decade, I’ve gained insight that I’d love to share for anyone considering similar endowment policies. The Maxgrowth Enhanced policy combines insurance coverage for total permanent disability (TPD), death, and terminal illness (TI) with an investment component. During the first 5 years, I paid $12,000 annually as premium, after which I paid nothing for the next 5 years. The promised bonus payouts—such as the reversionary bonus and terminal bonus—are meant to boost returns, but in reality, the overall growth has been modest. According to my most recent bonus statement from Great Eastern (2022), while the illustrated maturity value was around SGD 75,000, the actual payout was SGD 66,768, roughly translating to an annual growth rate of just 1.07%. This growth rate is quite low compared to other investment or insurance products available in the market. What surprised me was how complicated understanding bonuses like reversionary bonuses and accumulated reversionary bonuses could be. These are declared annually but don’t guarantee significant growth. The policy’s participation in profits can fluctuate based on the insurer’s investment performance and declared bonuses, which often leaves policyholders confused about real returns. From my personal experience, the endowment’s insurance coverage offered was limited, and the maturity value after ten years didn’t meet my expectations for wealth accumulation. Other policyholders have echoed similar sentiments online, highlighting that the promised returns might not justify the premiums paid. For younger individuals or those looking for better growth potential, it may be worth exploring alternative investment-linked insurance plans or unit trusts that offer clearer transparency and potentially higher returns. While the security aspect of the Maxgrowth Enhanced plan provides peace of mind, I regret relying solely on this strategy for both protection and savings. It’s essential to do thorough research and consider how flexible and rewarding a policy is before committing your hard-earned money. In summary, my journey with the Maxgrowth Enhanced policy taught me the importance of understanding policy details, expected returns, and alternative options. I recommend careful evaluation of endowment plans and consulting financial advisors to tailor insurance and investment products to your personal goals.
