Frequently Asked Questions

SAIL

Product Coverage

  • Q:What are the benefits payable?

    A:

    We will pay if the insured dies or becomes totally and permanently disabled, in accordance to the terms set out in the policy contract, during the policy term. At the end of the accumulation period, you can choose to surrender the entire policy to receive lump sum payment or convert the entire policy to a stream of payment for 20 years during the payout period.

Eligibility and Premium Payments During Accumulation Period

  • Q:What is the premium payment term?

    A:

    You can only buy this plan using single premium payment.

  • Q:Can I use CPF or SRS fund to buy this plan?

    A:

    You can use cash or SRS funds, but not CPF funds, to buy this plan.

  • Q:What is the minimum and maximum premium set for this plan?

    A:

    The minimum single premium investment is $10,000.

    There is no maximum limit set on the premium because it will be subjected to an assessment of your health and financial condition.

  • Q:Can I backdate my policy?

    A:

    No, you cannot backdate your policy for this plan.

Death Benefit During Accumulation Period

  • Q:What is the death benefit?

    A:

    We will pay 105% of the net single premiums and accumulated bonuses, in one lump sum as the death benefit. However, for insured with Substandard Life, the benefit payable is reduced to 101% of the net single premium and accumulated bonus.

  • Q:What is the meaning of Medically Substandard Life?

    A:

    Medically Substandard Life refers to an Insured suffering from any of the following medical conditions, at the time of application, within three months from the date of policy issue or reinstatement of the policy: 

    • Cancer
    • Heart or heart valve conditions
    • Chronic kidney disease
    • Stroke
    • Liver cirrhosis or end stage liver failure
    • Systemic lupus erythematosus
    • Terminal illness
    • Total loss, or total loss of use of one or both limbs, or total loss of use of one or both eyes

  • Q:What is the exclusion for death benefit?

    A:

    We will not pay the death benefit if the Insured committed suicide within one year from the commencement of the policy. The policy will be completely free of all legal effect and we will refund the single premium received without interest.

Total Permanent Disability Benefit During Accumula

  • Q:What is the total and permanent disability benefit?

    A:

    We will pay 105% of the net single premium and accumulated bonuses, if the insured is diagnosed with total and permanent disability before age 65 (last birthday). However, for insured with Substandard Life, the benefit payable is reduced to 101% of the net single premium and accumulated bonus.

    The maximum aggregate total and permanent disability benefit payable on the same life is S$3.75 million, inclusive of all policies issued by us and by other insurer.

  • Q:What is the meaning of total and permanent disability?

    A:

    Total and permanent disability/totally and permanently disabled means the inability to take part in any paid work for the rest of the insured’s life, or total physical loss. Insured must be incapable of engaging in any occupation when he is totally and permanently disabled. We do not pay if the insured is merely unable to perform the same job as before, or is unable to perform a job to which his training, education or experience is suited. 

    “Total Physical Loss” means:

    • the total and permanent loss of sight in both eyes;
    • the loss of, or total and permanent loss of use of, two limbs at or above the wrist or ankle; or
    • the total and permanent loss of sight in one eye and the loss of, or total and permanent loss of use of, one limb at or above the wrist or ankle.

  • Q:What are the exclusions for total and permanent disability benefit?

    A:

    We will not pay this benefit if your claim arises from:

    • deliberate acts such as self-inflicted injuries, illnesses or attempted suicide;
    • unlawful acts, provoked assault, or deliberate exposure to danger; or
    • effects of alcohol, drug or any dependence.

    We will also not pay this benefit unless the insured is certified by a registered medical practitioner to have been totally and permanently disabled for at least six months in a row.

  • Q:How will the total and permanent disability benefit be paid?

    A:

    We will pay this benefit in a lump sum, up to a maximum of S$1 million each year. If the benefit exceeds S$1 million, we will pay in yearly instalments.

  • Q:Do I need to pay premium while the total and permanent disability benefit is being paid in instalments?

    A:

    No, once we begin paying the total and permanent disability benefit, your policy will cease immediately and you will not have to pay premiums.

Riders / Supplementary Benefits During Accumulation

  • Q:What are riders/supplementary benefits?

    A:

    You can attach the following riders, subject to an assessment of your health and financial situation:

    Riders AvailableFor Insured if he is also the PolicyholderFor Policyholder if he is not the Insured
    Special Waiver of PremiumYesYes
    Waiver of Premium Benefit-Yes
    Enhanced Waiver of Premium-Yes

  • Q:When will the riders cease?

    A:

    The riders will cease when any one of the following conditions exist:

    • at the end of the premium payment term; or
    • when your policy is no longer in force.

  • Q:Can I add riders?

    A:

    No, you cannot add any rider to this plan.

Cash Value and Bonuses During Accumulation Period

  • Q:Is there any cash value for this plan?

    A:

    Yes, your policy will have a cash value immediately.

  • Q:Is there any cash value for riders added to this plan?

    A:

    No, there is no cash value for riders.

  • Q:Does this plan provide any bonus?

    A:

    Yes, your policy is eligible to bonuses after the end of the second policy year. There are two types of bonuses:

    1. The first type of bonus is an ‘Annual’ or ‘Reversionary’ bonus added to your policy each year. Once we have added an Annual Bonus, we cannot remove it. Annual Bonus during the accumulation period is defined as a percentage of the net single premiums paid. The minimum Annual Bonus rate in the first 5 policy years of the accumulation period is 1.30% per annum.
    2. The second type of bonus is ‘Terminal’ or ‘Special’ bonus which is an extra bonus that we pay
      • at the time of claim,
      • when you surrender your policy or 
      • when you convert the entire policy to a stream of payment for 20 years at the end of the accumulation period. 

    Special Bonus is only applicable during the accumulation period. Bonuses are not guaranteed. They are recommended by our appointed actuary and approved by our board of directors. 

  • Q:Is there a surrender value for my policy?

    A:

    Yes, your policy has a surrender value immediately. However, buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value may be less than the total premiums paid.

Policy Loan During Accumulation Period

  • Q:Can I take a policy loan?

    A:

    Yes, you can take a policy loan during the accumulation period, subject to the prevailing terms and conditions.

Options At End Of Accumulation Period

  • Q:What options do I have at the end of the accumulation period?

    A:

    You have the following options at the end of the accumulation period:

    • Convert entire policy to a stream of payment for 20 years. An additional Special Bonus is included in the computation of Conversion Value if you choose this option.
    • Convert part of policy to a stream of payment for 20 years. The minimum Conversion Value is currently set at $10,000 and is subject to revision.
    • Surrender the entire policy to receive lump sum payment.

    The default option is to convert the entire policy to a stream of payment for 20 years. The Conversion Day is the policy anniversary day right after the end of the accumulation period.

  • Q:What is Conversion Value?

    A:

    The Conversion Value is the sum of all the premiums that you have paid and accumulated bonus at the end of the accumulation period. This is used to provide a stream of payment for 20 years. The actual amount of the Conversion Value is not guaranteed. It is subject to bonuses declared on the policy during the accumulation period.

  • Q:When do I need to decide whether to convert policy?

    A:

    There is no need for you to decide at the point of application. We will be writing to inform you of the Conversion Value and the options available, at least one month before the end of the accumulation period. You can then make an informed decision based on your prevailing financial condition.

Payment Stream During Payout Period

  • Q:How long is the payout period?

    A:

    The payout period is fixed at 20 years.

  • Q:What are the components of the payment stream?

    A:

    Each payment consists of a Regular Payment and Bonus.

    • Regular Payment
      Each Regular Payment is set at 5.50% p.a. of the Conversion Value. The absolute amount of this Regular Payment will depend on the actual Conversion Value at the end of the Accumulation Period, which is non-guaranteed.
    • Bonus
      Bonus, in addition to the Regular Payment, are determined each year as a percentage of the Conversion Value. It is projected at 2.5% p.a. of the Conversion Value and may vary from year to year.

  • Q:What is the payment mode during the payout period?

    A:

    The default option is for the payment steam to be paid to you yearly, at the end of each policy year, with the first payment starting one year after conversion. You can choose another payment mode i.e. monthly, quarterly or half-yearly if at least $50,000 is converted into the payment stream. The amount of Regular Payment and Bonus for other payment mode will be adjusted using the following formula:

    Payment FrequencyFormula
    MonthlyAnnual Payment x 0.08
    QuarterlyAnnual Payment x 0.241
    Half-YearlyAnnual Payment x 0.487

    If you were to select monthly payment mode, the monthly payment starts one month after the Conversion Day. Note that changing of payment mode during the payout period is not allowed.

  • Q:Is the amount of payout guaranteed?

    A:

    No, the amount of payout is not guaranteed.

  • Q:Can I deposit the payment from payout period to earn interest with you?

    A:

    No, the payment cannot be left to accumulate interest with us.

Insurance Coverage During Payout Period

  • Q:What is the death benefit?

    A:

    We will pay 105% of the outstanding Regular Payment (excluding any projected future bonuses) as the death benefit. However, for insured with Substandard Life, the benefit is reduced to 101% of the outstanding Regular Payments (excluding any projected future bonuses).

  • Q:What is the total permanent disability benefit?

    A:

    We will pay 105% of the outstanding Regular Payment (excluding any projected future bonuses) as the total and permanent disability benefit. However, for insured with Substandard Life, the benefit is reduced to 101% of the outstanding Regular Payments (excluding any projected future bonuses). The maximum aggregate total and permanent disability benefit payable on the same life is S$3.75 million, inclusive of all policies issued by us and by other insurer.

  • Q:Can I add riders for the payout period?

    A:

    No, you cannot add Riders during the Payout Period.

Cash Value and Bonuses During Payout Period

  • Q:Is there any cash value during the payout period?

    A:

    Yes, your policy will have a cash value during the payout period.

  • Q:Does this plan provide any bonus during the payout period?

    A:

    Yes, bonus is given as part of the payment stream. It is determined each year as a percentage of the Conversion Value. It is currently projected at 2.5% p.a. of the Conversion Value and it may vary from year to year.

  • Q:Is there a surrender value for my policy during the payout period?

    A:

    Yes, there is a value for full surrender of this policy during the Payout Period. You may wish to refer to the supplementary benefit illustration to see how the surrender value changes over time.

    Termination of the policy during the payout period usually involves high costs and the surrender value plus payment stream received may be less than the Conversion Value.

Policy Loan During Payout Period

  • Q:Can I take a policy loan?

    A:

    No, you cannot take a policy loan during the payout period.