Invest round-up: A look at new financial products

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The Sunday Times outlines four new insurance offerings and a credit report service

China Life Insurance Singapore

CHINA LIFE SAVEREWARD 101 (SGD) ENDOWMENT PLAN

What: A five-year endowment plan that provides a fixed interest rate of 2.25 per cent per annum, guaranteed maturity yield, and 100 per cent capital guarantee upon maturity.

It requires no medical underwriting. Premiums are paid annually for three years. Mr Tony Chow, China Life Insurance's deputy general manager, said: "This is an attractive triple-guarantee endowment plan for customers looking to boost their savings.

"Moreover, they need to pay premiums for only three years to receive a rewarding guaranteed lump-sum maturity payout in five years' time."

Customers will also be covered against death during the policy term.

Assuming an annual premium of $20,000, the customer will receive a guaranteed maturity payout of $65,598 after five years.

CHINA LIFE SAVEREWARD 101 (RMB) ENDOWMENT PLAN

What: A five-year endowment plan that provides a 3.62 per cent a year guaranteed maturity yield and capital guarantee upon maturity.

Customers are able to diversify their portfolios with yuan through this product.

The plan does not require medical underwriting and also offers protection against death during the plan's tenure. Premiums are paid annually for three years.

Assuming an annual premium of 100,000 yuan (S$20,500), this works out to a guaranteed payout of 345,990 yuan (S$70,900) upon maturity after five years.

OCBC Bank: MaxTerm Value and PremierTerm Plus

What: MaxTerm Value and PremierTerm Plus are regular-premium term insurance plans.

They do not provide cash value at the end of the policy term and are a cost-effective solution for those who desire high protection coverage at affordable premiums.

Based on a 30-year tenure and the sum assured of $700,000 for a female non-smoker who will be 35 years old at her next birthday, the annual premium for the MaxTerm Value plan is $819 or $2.30 a day. The plan covers her against death, total and permanent disability, and terminal illness.

If the same insured person wants to buy an additional cover for 37 critical illnesses, she can buy a MaxTerm Value plan which will cost $2,569 yearly for 30 years.

The PremierTerm Plus plans are for individuals who want insurance coverage with a minimum of $1 million and above.

Both types of plans will cover policyholders up to age 85.

Ms Tan Siew Lee, OCBC Bank's head of wealth management Singapore, said the term plans offer customers the flexibility to meet their insurance coverage needs at very affordable premiums.

"These products are suitable for families with many financial commitments like mortgage and car loans, or even young executives joining the workforce - ensuring their savings are not wiped out, nor their families burdened, in the event something unfortunate happens," said Ms Tan.

CREDIT HEALTH IS KEY

While most Singaporeans understand the basics of money management, many neglect to check one of the most important indicators of financial health: your credit score. Being aware of your credit report and ensuring your credit health is in good shape are critical to securing a mortgage, credit cards or personal loans.

MR ROHITH MURTHY, co-founder and managing director of SingSaver.com.sg.

Singsaver.com.sg: Credit report for free

What: Available only on SingSaver.com.sg until the end of this month. The financial comparison platform with the support of Credit Bureau Singapore is offering complimentary credit reports.

Applicants who sign up this month will not have to pay the usual $6.42 fee chargeable online at Credit Bureau Singapore's website.

Mr Rohith Murthy, co-founder and managing director of Sing Saver.com.sg, says this initiative will help promote better credit literacy among Singaporeans.

He adds: "While most Singaporeans understand the basics of money management, many neglect to check one of the most important indicators of financial health: your credit score.

"Being aware of your credit report and ensuring your credit health is in good shape are critical to securing a mortgage, credit cards or personal loans."

To get your free credit report, visit https://goo.gl/bxUzNV or http://www.facebook.com/SingSaver.com.sg

A version of this article appeared in the print edition of The Sunday Times on June 19, 2016, with the headline 'Invest round-up: A look at new financial products'. Print Edition | Subscribe