Frequently Asked Questions

Gro Annuity

Product Coverage
  • Q:What is Gro Annuity?

    A:

    Gro Annuity is a participating single premium insurance plan that pays a regular income to the annuitant for the rest of his/her lifetime and protection against death.

  • Q:When does the annuity payout start?

    A:

    There are two types of annuity: immediate and deferred.

    • For an immediate annuity, the date of the first payout will depend on the payout mode.
      • For monthly mode, annuity payout will commence on the following month of the entry date.
      • For yearly mode, annuity payout will commence on the following year of the entry date.
    • For a deferred annuity, payout starts at the end of the deferred period. The deferred period can be from 1 to 20 years, subject to the condition that the annuity payouts cannot commence later than age 65.
Death Benefit
  • Q:What is the death benefit payable?

    A:

    The death benefit will be paid to the beneficiaries in one lump sum.


    If death were to occur during the deferred period, the higher of the single premium, or 97% of the single premium accumulated with interest and bonuses is paid. The interest rate is guaranteed at 2.5% per annum.


    If death were to occur after the annuity payout has started, the single premium with interest guaranteed at 2.5% per annum and bonuses accumulated during the deferred period, less total annuity paid will be refunded.

Cash Value & Bonuses
  • Q:Is there any cash value for this plan?

    A:

    Yes, your policy will have a cash value immediately.


    If the policy is surrendered before the end of the deferred period, we will refund 90% of the single premium accumulated with interest and bonus.


    If the policy is surrendered at the end of the deferred period, we will refund the higher of the single premium or 90% of the single premium accumulated with interest and bonuses.


    The interest rate for surrender is non-guaranteed and is determined by the appointed actuary. The current surrender benefit interest rate is set at 1.75% per annum.


    Once annuity payout has commenced, surrenders are usually not encouraged.

  • Q:Is this policy eligible for any bonus?

    A:

    Yes, this policy is eligible for bonuses. Annual bonuses are declared yearly. Once declared, they shall be added to the annuity payouts.


    Bonuses are not guaranteed. They are recommended by our Appointed Actuary and approved by our Board of Directors.

    Bonus pay-outs to policyholders are primarily influence by the performance of the Life Participating Fun (Par Fund). The Fund’s performance is predominantly driven by factors such as the investment returns of the Par Fund, its expenses and claims experience. Aligned to industry practice, Income is safeguarding policyholders’ interest by allocating 90% of Par Fund surpluses to them. This means for every $9 distributed to policyholders, only a maximum of $1 is allocated to shareholders.

Eligibility & Premium Payments
  • Q:What is the minimum and maximum entry age?

    A:

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  • Q:Can I buy Gro Annuity using Cash, Central Provident Fund (CPF) and/or Supplementary Retirement Scheme (SRS)?

    A:

    This plan has been withdrawn for new submission as of 23 November 2018. It is still available to policyholders who want to exercise the annuity option in their policies (if applicable).


    Only immediate annuity is available.

  • Q:Can I backdate my policy?

    A:

    No, you cannot backdate your policy.

Policy Loan
  • Q:Can I take a policy loan?

    A:

    You can loan up to 90% of the cash value of your Annuity policy, only if it is purchased using cash. This limit will be subjected to revision.


    Policy loan is not allowed for policies purchased using monies from CPF or SRS.

  • Q:What happens to my annuity payout when I take a loan on my annuity?

    A:

    The loan repayment amount will be deducted from each annuity payout you are receiving. You will therefore have to make other provisions if you are depending on your annuity payouts as your regular income.


    You will receive nothing if the full annuity payout is used to repay the loan. This happens when the loan amount exceeds the cash value of your policy after factoring in the interest charged on your loan.