Introduction
In today's dynamic financial landscape, investment-linked plans (ILPs) have emerged as powerful tools for wealth accumulation and protection. Great Eastern's GREAT Wealth Advantage 3 is a cutting-edge regular premium investment-linked plan designed to help you achieve your financial goals with ease and flexibility. This innovative product combines the benefits of investment growth potential with life insurance coverage, offering a comprehensive solution for those seeking to build wealth while securing their future. With features like a generous Welcome Bonus, Loyalty Bonus, and customizable investment options, GREAT Wealth Advantage 3 stands out as a versatile choice for individuals looking to power up their investment portfolio on their own terms.
How ILPs Work
Investment-linked plans (ILPs) offer a unique combination of life insurance protection and investment opportunities. With GREAT Wealth Advantage 3, your premiums are allocated between insurance coverage and investment funds. The investment portion allows you to choose from a range of diverse funds curated by professional fund managers, catering to various risk appetites and financial goals. You have the flexibility to adjust your coverage and investment strategy over time, making ILPs adaptable to changing life circumstances. The value of your policy is directly linked to the performance of your chosen funds, providing potential for wealth accumulation while maintaining essential life insurance protection. This structure allows you to participate in market growth while safeguarding your financial future.
Insurance Coverage
GREAT Wealth Advantage 3 provides comprehensive protection against life's uncertainties, ensuring financial security for you and your loved ones. The policy offers coverage for critical events such as death, total and permanent disability (TPD), and terminal illness. Let's explore the key aspects of the insurance coverage provided by this plan:
Death Benefit
Financial Protection. In the event of the life assured's death, the policy pays out a lump sum Death Benefit. This benefit is the higher of 105% of total premiums paid (including top-ups) less withdrawals, or the account value.
TPD Benefit
Disability Coverage. The policy provides Total and Permanent Disability (TPD) coverage throughout the policy term for specific conditions. For other forms of TPD, coverage is provided until the policy anniversary when the life assured reaches age 65.
Investment Component
GREAT Wealth Advantage 3 offers a robust investment component designed to help you grow your wealth over time. With a diverse range of funds and flexible options, you can tailor your investment strategy to align with your financial goals and risk tolerance. Here's an overview of the key features of the investment component:
Fund Options
Diverse Choices. The plan offers a range of funds, including dividend-paying options, to suit various risk appetites and investment objectives. This allows you to build a diversified portfolio aligned with your financial goals.
Professional Management
Expert Oversight. Funds are managed by professional fund managers who employ various investment strategies to optimize returns while managing risk. This expertise can help navigate complex market conditions.
Fund Switching
Flexibility to Adapt. You have the option to switch between funds, allowing you to adjust your investment strategy as market conditions or personal circumstances change. This flexibility helps you stay aligned with your evolving financial objectives.
Performance Tracking
Transparent Results. While past performance doesn't guarantee future results, you can track the historical returns of the funds. This information can help inform your investment decisions and assess the performance of your chosen funds.
Fees and Charges
Understanding the fees and charges associated with GREAT Wealth Advantage 3 is crucial for making an informed decision. These costs are designed to cover various aspects of policy administration, fund management, and early termination. Here's a breakdown of the key fees and charges you should be aware of:
Premium Allocation
Investment Efficiency. GREAT Wealth Advantage 3 offers 100% premium allocation from day one, meaning your entire premium is invested immediately. This feature maximizes your investment potential from the start.
Policy Administration
Ongoing Management. A policy administration charge may be applied to cover the costs of maintaining and servicing your policy. The exact amount and structure of this charge should be detailed in the policy document.
Fund Management
Investment Oversight. A fund management charge of 1.50% per annum is applied to cover the costs of professional fund management. This charge is factored into the unit price of the funds.
Surrender Charges
Early Termination. If you choose to surrender your policy early, surrender charges may apply. These charges typically decrease over time and are designed to recover costs associated with setting up the policy.
Flexibility and Customization
GREAT Wealth Advantage 3 offers a range of flexible features that allow you to customize your policy to suit your changing needs and financial circumstances. These options provide you with the ability to adapt your coverage and investment strategy over time. Here are some key flexibility and customization features of the plan:
Premium Top-ups
Boost Investments. You have the option to make single premium top-ups to increase your investment. This allows you to capitalize on market opportunities or invest additional funds when available.
Partial Withdrawals
Access Funds. The plan allows for partial withdrawals, giving you the flexibility to access a portion of your investment value if needed. This can be useful for unexpected expenses or financial opportunities.
Premium Holiday
Payment Flexibility. In case of financial constraints, you may have the option to take a premium holiday, temporarily pausing premium payments while maintaining coverage. Specific terms and conditions apply.
Adjustable Coverage
Tailored Protection. You can adjust your insurance coverage over time to match your changing needs. This includes the ability to change the life assured from the second policy year onwards, up to two times during the policy term.
Conclusion
GREAT Wealth Advantage 3 offers a compelling solution for individuals seeking a balanced approach to wealth accumulation and protection. This plan is particularly well-suited for young professionals starting their investment journey, like Jackson in our example, who can benefit from the long-term growth potential and flexibility. It's also an excellent choice for established individuals, such as Mr. Lim, looking to optimize their wealth for retirement while securing a legacy for the next generation. Additionally, those seeking a customizable investment strategy with professional fund management will find GREAT Wealth Advantage 3 to be a valuable financial tool.
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