1. How will my policy be affected after bonus declaration?
Once declared and vested, bonuses are guaranteed and payable in the event of a claim. Future bonuses, including maturity or terminal bonuses, are projected. The actual bonus rates declared in the future may be higher or lower, depending largely on the investment climate and economic conditions.
2. Since there is no revision in bonus rates, why are the “Illustrated Death Benefit” and “Illustrated Surrender Value” different from the illustrated values in my last year’s bonus statement?
The illustrated values will be different from last year’s bonus statement if your policy is a Whole Life policy and the Life Assured’s Age is between 45 to 79 as the illustrated values are based on the year that is 20 years later from current year.
If your age today is 47, illustrated values this year are based on the year 2041 (20 years later from 2021). In the last year’s bonus statement, your age will be 46 and illustrated values are based on the year 2040 (20 years later from 2020).
3. How are bonus rates determined?
Bonus rates declared are approved by the Board of Directors after written recommendation from the Appointed Actuary. When making recommendation for the amount of bonus to be declared for each policy, the Appointed Actuary has to take into consideration key factors that will affect the surplus available for distribution. These key factors include not only the investment performance and the outlook of the performance of the Par Fund in the medium to long term; they also include the claim experience, expenses, surrenders and lapses. The cumulative effect of past investment performance would be different for different plans, depending on the year of issue and type of plan.
4. How can I find out more about the bonus rates for my policies?
Softcopy of the Annual Bonus Statement will be made available to our policyholders on e-Connect by end June this year. SMS will be sent to inform you on the availability of the Statements.
Hardcopy Statements together with the Participating Fund Update for 2020 will be mailed out to the policyholders who are
The statements will be sent out progressively in batches in July this year.
*The Annual Bonus Statement will be accompanied by the Participating Fund Update for 2020. The Participating Fund Update will inform policyholders of the performance of our Par Fund in 2020, the Asset Mix, overview of the economic outlook and the allocation of Annual Bonuses to Par Policies for the year. We have included explanatory notes and infographics in the Statement to help our policyholders understand the common insurance terms used as well as how illustrated values are derived.
5. I wish to receive hardcopy communications. How could I update my preference?
You may wish to update your preference via the following:
6a. My policy does not break-even even after the bonus declaration.
6b. The total premiums I have paid for my policy have exceeded the death benefit. Why should I continue my policy?
The Benefit Illustration (BIPS)/ Policy Illustration (PIPS) you received were for the purpose of illustration and are not guaranteed. The actual amount payable either at maturity or upon surrender will depend on the declared bonus rate and maturity / terminal bonus rate. The assumptions used in the calculation of the values are stated on the BIPS/ PIPS.
Insurance is primarily aimed at meeting protection needs. Depending on factors such as age of entry, health loading, plan type and sum assured, some policies may not break-even.
If you buy a policy (e.g. Living Assurance Policy Plus with CRB) at an older age of, say 55, the cost of protection against death, TPD and major illnesses not only increases with age, but also increases at an increasing rate. Hence, for a life assured who is older, a large portion of the premium is utilised to pay for the cost of protection, leaving a smaller portion of the premium for savings purpose. As a result, the surrender value/death benefit of the policy would not be able to “catch up” with the total premiums paid and the policy does not break-even.
7. Can I withdraw the accumulated bonus?
Once declared, bonuses are guaranteed and are payable in the event of a claim.
We do not encourage you to withdraw the accumulated bonus prematurely. This is because you will be paid only the surrender value of the accumulated bonus. If you have short-term financial needs, you may wish to consider taking a policy loan instead. You can contact our Customer Service Officers at 1800-248-2888 for more information on policy loan.
8. What is the current investment portfolio of the Par Fund?
We will be sending the Bonus Statement for 2020 to all our policyholders by batches in June 2021. For policies with Reversionary/Terminal Bonus, you will receive a Par Fund Update for 2020 together with your Statement. The Par Fund Update will give you details on the asset mix of the Par Fund, fund performance and economic outlook.
9. I have other participating policies that are not reflected in this Bonus Statement. Why is this so?
This Bonus Statement only reflects applicable participating policies that are accorded reversionary bonuses yearly. Cash Bonus will be allocated on the policy anniversary and the Cash Bonus Statement will be sent within one month from the date of allocation. Non-participating policies will not be reflected in the Statement.
For the former, a separate communication will be sent to customers to share on the Par Fund Update for 2020.
10. Why is “Illustrated Maturity Value” shown for some policies, and “Illustrated Surrender Value” and “Illustrated Death Benefit” shown for others?
For Endowment policies, we will show the “Illustrated Maturity Value”.
For Whole Life policies, we will show the “Illustrated Surrender Value” and “Illustrated Death Benefit” based on the Life Assured’s (LA) Age today as follows:-
Please note that Illustration Values exclude Survival Benefit and Cash Bonus, if any. Policyholders may refer to the original Policy Illustration for these values.
Note: The PPF Scheme protects life insurance policies (including riders) issued by licensed life insurers which are PPF Scheme members. The Scheme covers policies issued in Singapore by a licensed life insurer to both residents and non- residents of Singapore. It does not cover policies issued by overseas branches of a licensed life insurer incorporated in Singapore. Refer to this link for more details on PPF Scheme.
OCBCSGSG (Swift code)
Great Eastern Life Bank Account Number with OCBC:
501-036925-001 (Singapore Dollars Policy)
501-009492-201 (US Dollars Policy)
Name of Payee: The Great Eastern Life Assurance Co Ltd
We would like to advise that all bank charges related to the remittance would be borne by the policyholder. Please remember to state the policy number and name of the policyholder when remitting payment to us.
If you are sending a draft to us, our address is:
1 Pickering Street
#13-01 Great Eastern Centre
Please remember to write the policy number and name of the policyholder when remitting payment to us.