OCBC Premierlife Generation is marketed by OCBC Relationship Managers. It is a single premium participating endowment which provides monthly guaranteed survival benefits and a cash bonus from the 49th month of the policy. The equivalent version is Great Eastern’s Prestige Life Rewards.
OCBC Premierlife Generation is used for multi-generation planning. A policy implemented in the life of a child would enable a parent to enjoy the benefit while he/she is alive and passes the monthly payout to the child upon their demise. Upon the death of the child, the beneficiary (e.g. grandchildren) will receive the invested amount plus bonus.
It can also be used for personal retirement planning. The monthly guaranteed survival benefits and cash bonus can offset monthly expenses during retirement. A combination of this plan with CPF Life and other insurers’ retirement plan would give one a better peace of mind for his/her retirement.
The minimum entry to this plan is S$100,000.
Image is taken from ocbc.com
Pros of OCBC Premierlife Generation
- The payout starts from the 49th policy month, and it is shortest compared to similar plans that pay out from the 61st policy month
- The monthly payout can be re-invested with Great Eastern currently at 3.0% p.a.
- Guaranteed acceptance with no medical examination required
Cons of OCBC Premierlife Generation
- The total annual payout (guaranteed monthly coupon + annual dividend) is lesser than similar plan in the market
- The internal rate of return (IRR) based on the projection of 4.75% is significantly lower compared to a similar plan in the market if the policy was to terminated early (e.g. between 20 to 25 years)
- The internal rate of return (IRR) based on only guaranteed payout is also lower compared to a similar plan in the market even if the policy is held to 100 years old
To know if OCBC Premierlife Generation is suitable for you and how it compares to similar plans in the market.
To know if OCBC Premierlife Generation can pay out its projection returns based on past historical performance.
To see how a combination of OCBC Premierlife Generation with other insurers’ endowment plan to provide you with a more holistic planning.
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Besides OCBC Premierlife Generation, you may want to read up another similar plan from NTUC here.