This is the Monthly Cash Benefit you will receive from the 5th Policy Anniversary for as long as the life insured is alive and while the policy is in-force. The minimum premium to be eligible for premium financing is $200,000, or a minimum monthly benefit of $700.
This is the single premium you would like to pay for such a product. A higher single premium will mean a higher Monthly Cash Benefit. For example a Single Premium of S$200,000 will provide a lifetime Monthly Cash Benefit of $700. The minimum premium to be eligible for premium financing is $200,000.
A limited tranche available with premium financing is now available. Please get your quotation and confirm your interest by as soon as possible.
If you are looking to secure a lifelong income cash dividend of up to 10% p.a.1, you can consider China Taiping's Infinite Harvest II!
Pay a Single Premium and start getting lifelong monthly cash dividends after Year 5. Take advantage of the low loan rates to premium finance up to 72% of the single premium to boost cash dividends up to 10% p.a.1 of your cash outlay.
What is premium financing?
Premium financing is when you only pay a portion of the premium with the rest of the premium being paid through a loan with a bank. The policy itself will be the collateral for the bank.
This make sense when the expected cash dividends are greater than the loan interest rate. Through premium financing, your returns are based on the total premium but your own cash outlay is a lot less!
Check out our case study below and then get started by getting a quote above!
From now till 30 June 2021, get $388 cashback for your successful application.
Have a question you need answered? Ask us or request a call-back!
Email us (best way to reach us): email@example.com
WhatsApp us: +65 9151 5963 (Mon to Fri: 9am - 5pm)
Call us: +65 3138 6784 (Mon to Fri: 9am - 5pm)
Hassle-free application and guaranteed issuance (No medical underwriting requirements!)
Infinite Harvest II
Expected cashback after Year 5
4.2% p.a. of Single Premium before premium financing
(1.58% p.a. guaranteed + 2.62% p.a. non-guaranteed)
Up to 10% p.a.1 of Single Premium after premium financing. See Case Study below.
Potential for Capital Back on Surrender
Yes, including non-guaranteed benefits
Day 1: 80% Single Premium, keeps growing every year.
Whole of Life
Not applicable as policy pays out monthly cash benefit for life
Source: China Taiping Infinite Harvest Brochure
Year 0 - 5
Ms. A (Age 35)
Ms. A, age 35 signs up for Infinite Harvest. She pays for the single premium of $200,000 with premium financing of $144,000 and cash of $56,000.
Ms. A will pay the interest on the loan amount from Year 1 to Year 5 which is $1,845 p.a.2. From the start of the 6th policy year, the policy begins to pay monthly cash dividends which more than cover the loan interest payments.1,2,5
From Year 6 and for the rest of Ms. A's life
Ms. A (Age 41)
Ms. A starts enjoying the Cash Dividend paid on a monthly basis.
Annual Cash Dividend4
Total Annual Dividend: $8,400
Loan Interest Payments2
Total Annual Loan Interest: $1,845
The guaranteed cash dividend is more than the loan interest.1,2,5
Net Cashflow from Year 6
Dividend less loan Interest: $6,5551,2,5
The net cashflow is 10% p.a.1 of Ms. A's cash outlay of $56,000 and 5 years of interest payments at $1,845 p.a.2
The dividends are payable for the rest of Ms. A's life. This means that if Ms A lives to age 80, the policy would have paid out 400%1 of the total cash outlay, or $262,1994 in monthly cash dividends and in addition, there will be a death benefit of $407,6006 that can be used to repay the loan and the rest of the proceeds will be paid to Ms A's beneficiaries.
Ms. A may decide to surrender the policy in the future. If she surrenders at the end of 30 years, she can expect to receive a surrender value of $258,8007 and would have already received 250%1 (10%1 p.a. for 25 years) of her total cash outlay. The surrender value will be used to repay the $144,000 loan and the rest of the proceeds of $114,800 will be more than her cash outlay.
1. How does this product compare with a Universal Life product?
Infinite Harvest II's main benefit is its focus on a constant stream of monthly cash dividends. Whereas universal life products focus on a high protection element. More importantly, as Infinite Harvest II is a Participating product, the product will not auto-lapse due to a zero account balance. Universal Life products may have a decreasing account value if the crediting rates are lowered and the insurer continues to deduct mortality and expense charges from the account. The universal life product without any "no-lapse guarantees" will lapse if the account value drops to zero.
2. Can the Monthly Cash Dividend be accumulated with the company to accumulate interest?
Yes, subject to CIMB's approval, you can still choose to accumulate your cash dividends with China Taiping to enjoy their cash accumulation rate of 3.5% p.a. (not-guaranteed). However, you do need to demonstrate that you have a standing instruction to pay the loan interest payments promptly.
3. Will I definitely be able to borrow up to 72% of my single premium?
The amount that you are able to borrow will still be subject to the bank's own credit review of your financial status. The maximum that you will be able to borrow will be up to 72% of your single premium. You may not be able to obtain premium financing if you are above age 65.
You will know the loan amount that can be extended to you before you finalise your application for this product.
4. Does the insurer require proof of survivorship on the life insured to pay out the Monthly Cash Benefit?
The insurer reserves the right from time-to-time to request for satisfactory proof that the life insured is alive before paying the Monthly Cash Benefit.
5. What happens if the insurer is not notified immediately of the life insured’s death and continues to pay out the Monthly Cash Benefit?
Any Monthly Cash Benefit paid on or after the date of the life insured’s death will be deducted from the death benefit proceeds
6. What happends if the Life Insured passes away?
The policy will pay out the death benefit which will be more then the loan amount outstanding. The payout will be used to pay off the loan first. The remaining cash will be paid to the beneficiary of the policy.
7. Can I change the Life Insured?
No, once the policy is incepted, the Life Insured cannot be changed.
8. Can I appoint myself as the Policy Owner and have my child as the Insured?
If you choose to use premium financing, the policy will be assigned to the bank and you will have to be the Insured and Policy Owner or the policy.
+Subject to T&Cs on absolute assignment.
InsureDIY is a Broker licensed by the Monetary Authority of Singapore and is an Exempt Financial Adviser. This advertisement has not been reviewed by the Monetary Authority of Singapore.
1 For illustrative purposes and reference only. The return comprises both a guaranteed and non-guaranteed amount and is also dependent the loan financing amount and loan interest rate available to you. The actual benefit payable may vary according to the future performance of the Participating Fund. The figures illustrated assumes that the insurers earn an investment return of 4.75% as indicated in the policy illustration.
2 Loan interest rate is assumed to be 1 month SIBOR + 1% p.a. for illustration purposes. The 1 month SIBOR rate as at 15 March 2021 was 0.28126% as published on https://www.abs.org.sg/benchmark-rates/rates-sibor. The final loan interest rate may fluctuate according to prevailing market conditions and will be confirmed by the bank. This will impact the net returns to you.
3 Premium financing is provided by the bank and not China Taiping for Infinite Harvest. There is no guarantee that you will be eligible for premium financing as this will be at the discretion of the bank.
4 For illustrative purposes and reference only. The cash dividends comprise both a guaranteed and non-guaranteed amount. The actual cash dividend payable may vary according to the future performance of the Participating Fund. The figures illustrated assumes that the insurers earn an investment return of 4.75% as indicated in the policy illustration.
5 For illustrative purposes and reference only. The premium financing loan interest rate may change from time to time and may be greater or lower than the guaranteed cash dividend rate.
6 For illustrative purposes and reference only. The figure provided is based on the total death benefit in China Taiping's Infinite Harvest policy illustration at age next birthday 81. The death payout will go to pay off the remaining loan amount and any interest accrued before being distributed to the beneficiaries.
7 For illustrative purposes and reference only. The figure provided is based on the total surrender value in China Taiping's Infinite Harvest policy illustration at the end of policy year 40. The surrender value payout will go to pay off the remaining loan amount and any interest accrued before being distributed to the policyholder.
Accurate as of 15 March 2021. This marketing material is for general information only and does not have regard to your specific investment objectives, financial situation and any of your particular needs.
The materials and information on this site (the “contents”) are current at the date of publication and are provided on an "AS IS" basis. InsureDIY makes no representation or warranty, whether expressly or impliedly, as to the adequacy, completeness, accuracy or timeliness of the contents for any particular purpose.
The contents are for general circulation and information only. They are not made with regard to the specific investment objectives, financial situation and the particular needs or personal circumstances of any particular person who may receive them. They should not be relied upon as financial advice. You should obtain independent verification of the contents and seek professional advice before making an investment or financial decision based on them. You should carefully consider whether any investment products/insurance products/services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances or seek financial advice.
Submitting an application via InsureDIY does not automatically incept the policy as acceptance of the insurance application is by the insurer.
PLEASE READ the brochure and policy illustration carefully before applying.
In no event shall InsureDIY be liable to any party for any damages, claims, expenses or losses of any kind (whether direct, indirect, special, incidental, punitive, exemplary or consequential or otherwise) arising from or in connection with any use of or reliance on the accuracy, suitability and completeness of the contents.
Any transactions over the Internet may be subject to interruption, transmission blackout, delayed transmission due to Internet traffic, incorrect data transmission and/or the public nature of the Internet. InsureDIY is not responsible for any use or damage arising from system, server or connection failure, error, omission, interruption, delay or failure in transmission, computer virus or other malicious, destructive or corrupting code.