Income Gro Cash Plus

Income Gro Cash Plus is an insurance savings plan offered by Income Insurance. This plan is designed to provide both savings and insurance protection, with features aimed at securing the financial future of policyholders through guaranteed capital and potential lifetime cash payouts. Take your time to review the elaborations of some features along with the case study example.

Further elaborations of the features are as follows:

1. Capital Guarantee: The plan ensures that the capital is guaranteed from the end of the third policy year, providing a secure foundation for policyholders’ investments.

2. Lifetime Cash Payouts: Policyholders can receive a lifetime of cash payouts starting from the end of the third policy year up until the insured reaches age 120. These payouts can be up to 6.59% of the sum assured, depending on the policy entry age and other conditions.

3. Secondary Insured Option: The policy allows for the appointment of a secondary insured, ensuring the continuity of the policy in the event of the original insured’s death. This feature is particularly beneficial for leaving a financial legacy to a designated beneficiary, such as a child or spouse.

4. Protection Benefits: The plan offers protection against death and terminal illness, with payouts that include the higher of 105% of all net premiums paid or the guaranteed portion of the cash value, along with a terminal bonus.

5. Guaranteed Insurability Option: Policyholders can purchase additional life insurance coverage without medical underwriting upon experiencing certain life events, such as marriage or purchasing a residential property.

6. Guaranteed Acceptance: The plan provides guaranteed acceptance regardless of the insured’s health condition, though financial underwriting is applicable.

7. Riders for Enhanced Coverage: Additional riders, such as the Cancer Premium Waiver, can be added to the policy to waive future premiums if the insured is diagnosed with a major cancer.

A case study on Income Gro Cash Plus featured Mr. Lim, a 45-year-old planning for retirement and legacy.

He pays a yearly premium of $30,000 for three years, with capital guaranteed at $90,000.
Starting from age 48, he receives annual cash payouts, which increase over time.
He chooses to accumulate the payouts with the insurance company.
At age 64, he withdraws $66,058 for a luxury cruise, and at age 65, he begins using the annual payout to support his retirement.
Upon his death at age 80, the policy continues with his son, James, as the insured.
When James reaches age 85, the policy matures and pays out a total of $340,985, which is 3.78 times the premiums paid.

Some things to note. This review post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.

There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a rising interest rates environment, things are set to change.

Income Gro Cash Plus may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.

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