SecurePlus Plan from Aviva & POSB

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Aviva and POSB are advertising a product called the SecurePlus Plan. What is it and how does it compare with other products on the market?

The SecurePlus Plan is essentially a single-premium saving and insurance scheme. A single-premium product is one that requires a one-off payment, as opposed to monthly staggered payments.

Basic features:

Returns:

On a compunded basis, the product yields 1.48% compounded annually

Risk:

Although distributed by POSB, the plan is underwritten by Aviva, so the risk of the default is with Aviva

How it compares:

The SecurePlus Plan differs from many insurance savings products in that it has a relatively short tenure and a correspondingly lower yield. For example, a local competing insurer has an alternative single-premium savings insurance plan with a 10-year savings term, followed by a 20-year payout period. Overall yield is up to 4.1% returns per annum.

Secondly, only death is covered under the plan, unlike the typical savings insurance plan which also covers permanent & total disability

Target market:

As only death and accidental death are covered under the SecurePlus Plan, most other groups of savers would be better served by other investment and insurance products


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Last Updated ( Sunday, 18 July 2010 16:42 )