Information on paying advanced premiums for insurance & the latest Great Eastern rates after recent OPR changes

Updated: APA Rates updated for 2018

advance-payment

Why pay Advance Premiums for Insurance?

  • Frees up hassle of making & arranging future payments as will be automatically deducted from the account
  • Provides returns at rates reasonably comparable to FD rates at daily rest

Key info on Great Eastern Life Assurance’s Advance Premium Account (APA)

  • Only for traditional policies with guaranteed premium (non-ILP) policy on annual pay mode & free from Policy Loan (PL) & Automatic PL.
  • Min 2 years advance premium at starting & max limit total of all future premiums
  • Min 1 year advance premium for subsequent placements
  • Interest rate is not locked at time of submission
  • Earn interest at prevailing rate (3.40% as of Sep 1, 2016) compounding on daily rest & can change at company’s prerogative
  • Withdrawal must be in full & once a withdrawal is made, no new placements for 1 year in the same account
  • Withdrawal processing takes 5 business days & submitting written request for withdrawal
  • Upon waiver, death or TPD that terminates the policy, the APA balance will be fully refunded

APA Prevailing Rate

 Effective Date APA Interest Rate
 01/04/20084.00%
 01/04/20092.80%
 01/04/20102.90%
 01/07/20103.10%
 01/10/20103.15%
 01/07/20113.45%
 01/10/20143.60%
 01/09/20163.40%
 01/04/20183.60%

 

FAQ

Q: Will an initial APA placement statement or letter be sent upon placement?
A: No there will only be the APA annual statement

Q: When will APA Annual Statement be sent?
A: It will be sent out in April annually for all policyholders with APA

Q: What are the APA withdrawal methods?
A: APA withdrawal is only by cheque & requires policyholder to write in a written letter

Q: How long will it take for APA withdrawal processing?
A: 5 business days

 

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