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Pros and Cons of OCBC MaxGrowth Enhanced

OCBC MaxGrowth Enhanced is an anticipated endowment insurance plan offered by OCBC bankers. It is commonly seen during roadshows and often positioned as a ‘savings plan’ which offers higher interest rate as compared to the savings account. There are two options for policy term of 10 and 15 years

The premium payment term is only 5 years as the premium for the remaining policy years will be offset by the Survival Benefit (100% of the annual premium) from the end of the 5th policy year to one year before maturity. This policy is a guaranteed issuance offer policy with no medical underwriting.

OCBC MaxGrowth Enhanced

The above screenhot is taken from ocbc.com.sg

Our MaxGrowth Enhanced comparison table

  • Several insurers offer endowment policy that is similar to OCBC MaxGrowth Enhanced
  • Based on the information on OCBC website, we came up a comparison table and a computation table to calculate the actual return of 2 similar plans that are popular in the market
  • The comparison table is shown in the picture below

MaxGrowth Enhanced Comparison

We understand from our client that there is bundle promotion available. Other insurers also have competitive customer promotions. Talk to us here and find out more.

Pros of MaxGrowth Enhanced

  • Short payment term of 5 years or a single prepayment for the 10 years option.
  • The interest rate offered is potentially higher than the bank deposit rates

Cons of MaxGrowth Enhanced

  • Based on the above from OCBC website, the guaranteed yield is -1.42% p.a. for a 10 years plan with 5 years limited payment. There are endowment plans that give a higher return with similar policy period.
  • The guaranteed and projected yield is 2.60% p.a. Again, there are several endowment plans from other insurers that give a higher guaranteed return.
  • While the prepayment option gives a 5% discount (that translate to a saving of $2,801.25), the guaranteed and projected yield is 2.61% p.a. and the guaranteed yield is -0.62%. Hence, the yield is also not competitive The prepayment option has temporarily removed from the OCBC website.

To find out how we calculated the actual return of OCBC MaxGrowth Enhanced

To find out how OCBC MaxGrowth Enhanced compares to other plans in the market

To understand if MaxGrowth Enhanced is suitable for your needs

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Before you commit to the OCBC MaxGrowth Enhanced plan, we commend you to read one of our most read article on “8 Things to consider when you buy an endowment (savings) plan”.

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