Information on paying advanced premiums for insurance & the latest Great Eastern rates after recent OPR changes
Updated: APA Rates updated for 2018
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|
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