NTUC will be relaunching their Capital Plus (CPN23) today. Application will be closed once NTUC Income has received the sales allocation or by 15 March 2011, whichever is earlier.
This plan is opened to all policyholders and new applicants. The entry age is from 16 to 80 (last birthday), available for Cash or SRS.
It has a policy term of 2 years and a guaranteed yield of 1.4% p.a. upon maturity.
The minimum single premium per policy is set at $10,000 and the maximum single premium per Insured is set at $1,000,000.
If policyholder wish to invest in more than one Capital Plus policy, the maximum cumulative amount policyholder can invest for all policies is S$1,000,000.
Upon Death or Total and Permanent Disability (TPD) of the Insured:
a) within the first policy year, the benefit payable will be the single premium;
b) after the first policy year (and before maturity), the benefit payable will be 105% of the single premium.
For TPD, the benefit is payable if it occurs before age 65 (last birthday) or maturity, whichever is earlier.
I think the returns pale in comparison to that of CapitaMall Trust bonds (giving 2% pa) which are currently opened for subscription.
Given that the risk of CapitaMall Trust default within these two years should be relatively low, I think most people who are looking for this kind of products would probably go for CapitaMall Trust Bonds.
